The HCMC Real Estate Association commented that 2023 was the hardest period for the real estate market. The activities of the HCMC market in the first six months of 2023 reached a negative growth rate of 11.58 percent. The annual rate, though more promising, was still a negative figure of 6.38 percent compared to other years.
Aware of that, the Government and ministries, related state agencies hosted various meetings to discuss feasible solutions for the real estate market to overcome difficulties.
In the forum this time, Director Hoang Hai of the Housing and Real Estate Market Management Agency (under the Construction Ministry) answered law-related questions, saying that the newly approved laws by the National Assembly were able to address about 70 percent of legal trouble for the real estate market.
Particularly, although the 2023 Housing Law and the 2023 Real Estate Business Law will not come into effect until January 1, 2025, the Government has already applied various measures to tackle existing problems.
In order for this market to improve, Deputy Minister of Construction Nguyen Van Sinh proposed that businesses in the field should actively adopt the following solutions:
- Regarding investment sources, real estate enterprises should diversify their ways to attract capital, ranging from bank credit to channels to issue corporate bonds, stocks, investment funds, and financial leases. They should also introduce a detailed money allocation plan when mobilizing capital, reduce the financial leverage, and limit investment spread;
- As to investment activities, businesses in the field should focus on completing on-going accommodation projects, especially social housing, worker housing, and below-market housing projects in order to increase liquidity. The quality, legality, and support public facilities for these products must be ensured;
- Concerning product price, it is necessary for these companies to exercise measures to minimize costs and make the retail price more affordable, along with structuring those products according to real needs of the community.
