Q: Can you please give an overall assessment of the real estate market in 2014 and the particular difficulties the market faced in the past year?
A: The real estate market in 2014 recovered positively, despite stagnating in the 2010-2013 period, thanks to a string of solutions from the Government and the Ministry of Construction.
Housing prices are now fairly stable and affordable for the majority of people. Real estate options are now more diverse, satisfying the demands of various types of customers, and contributing to increasing the liquidity of the market.
New housing construction projects have made adjustments to apartment structures with an increase of small apartments under 70 square metres and fewer large-area apartments.
2014 also saw a rise in successful housing transactions, primarily completed housing projects near the city’s centre, with adequate infrastructure facilities, carried out by prestigious investors. Projects to be completed, ongoing projects with good progress and small-area apartments saw many deals last year.
In 2014, around 11,550 housing transactions were successfully carried out in Hanoi, nearly double that of 2013, while more than 10,300 transactions were recorded in Ho Chi Minh City, up 30% against 2013.
Moreover, real estate inventory continued to decrease and real estate credit saw a constant rise since the beginning of 2014. In the January-October period in 2014, real estate credit was posted at over VND299 trillion (US$10.76 billion), up 14% against the same period of the previous year.
However, the real estate market in 2014 also encountered many difficulties with a number of enterprises having to suspend operations while many others were in the process of restoring operations. The market still lacked small-area flats in convenient locations, good infrastructure and reasonable prices. The disputes between customers and investors in raising capital, and prolonged delays in the handing over of flats have not been thoroughly solved.
There was a high demand for housing from workers at many large industrial zones in the provinces of Thai Nguyen, Bac Ninh and others, but very few enterprises invest in such projects.
Q: There seems to be a slowdown in the social housing development programme. What do you think about this?
A: The Government promulgated many policies and mechanisms in support of the development of social housing for low-income earners in both rural and urban areas. Such policies and mechanisms have created positive impacts on the housing market and boosted investment in housing projects.
To date, more than 100 social housing projects have been completed and 150 others are being carried out. 34 projects were given a pledge of VND4.4 trillion (US$206.8 million).
At the same time, the Government's VND30 trillion (US$1.41 billion) housing assistance package, launched in 2013 to stimulate housing demand, has paid off with an increasing disbursement rate. By mid-December 2014, commercial banks approved housing loans worth more than VND9.4 trillion (US$441.8 million) with total outstanding loans of over VND4.8 trillion (US$225.6 million).
New points of view in social housing development were stated in the 2013 Constitution, the Party's Resolutions and in the revised Law on Housing recently approved at the 8th session of the National Assembly as well as in Government's policies, which need time to produce their intended effect. In 2015 and in the coming years, such policies will certainly be implemented and promoted to meet people’s housing demands.
Q: It is said that 2014 was a bumper year for the promulgation of policies related to the construction sector. What is the impact of these policies on the real estate market and which solutions will the Ministry of Construction focus on to develop a stable real estate market?
A: It is true that in 2014 many new policies took effect and several new legal documents were approved relating to the construction sector, housing and real estate development.
Since early this year, the Ministry of Construction has been working with relevant ministries and sectors to build and submit to the Government five decrees and attached circulars aiming to create a breakthrough in housing development policies. Accordingly, the investment in and building of housing projects must conform to plans adopted by authorised agencies to prevent the imbalance of supply and demand.
The revised Housing Law, effective July 2015, expands the scope of property ownership allowing overseas Vietnamese, foreigners with valid visas and foreign direct investment enterprises to buy residential properties. The revised law is expected to attract more foreign sources and drive the development of the real estate market.
To boost the stable, healthy and sustainable development of the real estate market, in 2015 the Ministry of Construction will closely co-ordinate with ministries and sectors to complete institutions related to managing investment, and building and developing urban areas, housing projects and the real estate market.
At the same time, the ministry will work with localities to strengthen the management of real estate projects and review ongoing projects to decide which ones will be continued, converted or adjusted. In addition, the Construction Ministry will promote the implementation of goals set out in the National housing development strategy by 2020 with a focus on developing social housing projects to serve low-income earners.
Legal documents with synchronous amendments will surely create positive impacts on the real estate market, contributing to meeting the housing demands of policy beneficiaries as well as enhancing State management of the real estate market.
Thank you very much!
Source : Nhan dan online