While presiding over a meeting of the central steering committee for housing policy and the real estate market yesterday, Deputy Prime Minister Tran Hong Ha made the statement.
A report from the Ministry of Construction indicated that while there were some positive developments in the early months of 2024 yet the supply within the real estate market remained relatively constrained.
The housing market is skewed towards mid- to high-end segments, with a significant shortage of affordable housing. The supply of low-cost housing options is dwindling. Real estate credit outstanding reached a substantial VND1,274,233 billion by August 31, a 29 percent increase from the previous year.
Furthermore, prices in key areas like Hanoi, Ho Chi Minh City, and other major cities continue to rise in the third quarter of 2024.
The availability of real estate and housing to satisfy the requirements of the majority, particularly low-income and middle-income earners in urban centers such as Hanoi and Ho Chi Minh City, remains insufficient.
In certain regions, there is a trend of auctioning land use rights where the winning bids significantly exceed the initial price. Subsequently, the deposit may be forfeited after securing the land auction, creating an artificial price level in the area for profit generation.
In concluding the meeting, Deputy Prime Minister Tran Hong Ha called for an evaluation of the real estate market conditions across various regions. He emphasized the need to identify areas experiencing shortages without corresponding development, as well as those with excess inventory that remains unsold.
Furthermore, he highlighted the importance of delineating the responsibilities of ministries, agencies, and local authorities in forecasting supply and demand, as well as in managing the structure of real estate product segments.
Deputy Prime Minister Tran Hong Ha requested the Ministry of Construction in collaboration with the State Bank to gather data and report on the credit landscape within the real estate sector. This report should assess the sector's impact on the economy and propose innovative, robust, and essential policies and measures aimed at revitalizing the real estate market.
