Tasks of the Prime Minister with untangling real estate market issues

In recent months, Vietnam property market has experienced a significant decline in transactions, as many projects have yet to be able to proceed due to a lack of capital. Prime Minister Pham Minh Chinh has set up government bodies dealing with issues in the property market to aid it in overcoming difficulties.

PM sets up taskforce to deal with difficulties in Vietnam property market

The Prime Minister said in a statement on Wednesday that the Ministry of Construction was ordered to offer changes to the overlapping regulations hindering the development of the property, housing, and urban projects.

The official said the ministry must examine and choose appropriate investors to create social and worker housing projects to complete the one million social housing target within the next ten years. PM asked Nguyen Thi Hong, governor of Vietnam's State Bank, to lead commercial banks to decrease administrative costs and procedures hindering capital provision to real estate firms.

He said banks ought to loan fast to eligible property projects and companies that can repay loans, particularly social housing projects, worker housing, and commercial housing, at reasonable prices. 

The Ministry of Finance is tasked with reviewing corporate bonds and coming up with measures to eliminate existing issues in the market. Real estate developers ought to restructure their customer base, prices, and other elements to make it more convenient for buyers. The property market accounts for around 11% of Vietnam's GDP and has formed many jobs.

Since the beginning of the year, Vietnam's property market has faced a significant decline in transactions, as many projects have been suspended due to a shortage of capital. In mid-November, Prime Minister Chinh established a task force to untangle difficulties in the property market. 

Apartment sales down 89% in south

According to DKRA Vietnam, just 213 transactions were completed in HCMC and neighboring Binh Duong Province and none in other southern localities. It explained that the sales numbers plummeted by 89%, partially due to a decrease in supply, particularly in new projects. Tightened credit conditions also played a part by making it difficult for people to borrow to buy housing. In the primary market of November, numerous developers offered discounts of 40-50% for apartments, while prices dropped by 3-5% from October. Most transactions last month were by sellers who urgently required funds to repay banks after loan interest rates surged. Property developers did not launch new products in 

Nguyen Tuan Anh, a Tan Long Homes Company broker, said that the apartment market is in a prolonged recession, with liquidity and demand falling even in HCMC and Binh Duong. Many insiders 

Nguyen Mac Hoai Nam, general director of Nam Phat Consulting Service Company, told VnExpress the apartment market is in a prolonged slump, with liquidity and demand falling even in HCMC and Binh Duong. Several insiders forecast this case to persist into 2023, with apartment prices in the primary market staying high and people selling at discounts in the secondary market to cut losses.

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