Apr 11, 2018 / 17:12

Government to promote reforms of realty market

The Hanoitimes - The government will make breakthrough in streamlining legal regulations and reforming business conditions in the real estate sector this year.

According to Nguyen Manh Khoi, deputy director of the Ministry of Construction’s Department of Housing Management and Real Estate Market, the construction ministry will submit to the government a draft decree on reforming administrative procedures in the second quarter of this year for approval.
Legal regulations will be revised to help the real estate market further develop
Legal regulations will be revised to help the real estate market further develop
The ministry is also scrutinizing to revise the Law on Housing and the Law on Real Estate Trading, which will create favorable conditions for all economic sectors, especially foreigners, to take part in Vietnam’s real estate market.
The ministry will also complete specific information on the local property market and identify hindrances faced firms, along with finding measures to solve them, Khoi said.
However, Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said the State should amend the Land Law, regulations on land use rights for lands of tourism resorts, Investment Law, Enterprise Law and Bidding Law to have a transparent competitive environment.
He said real estate investors should be most concerned about the risk of supply and demand.
Earlier, Minister of Construction Pham Hong Ha said in 2018, the ministry would implement a project on assessing the situation, forecasting trends and proposing market solutions and management policies to promote a stable and healthy development of the real estate market.
This is an important database to follow developments in the property market, propose solutions to promote those developments and enhance inspection and supervision to implement laws on housing and real estate market, Ha said.
The ministry will regularly engage in dialogues with associations and businesses to deal timely with feedback and proposals of enterprises and the public.
Nguyen Tran Nam, chairman of the Vietnam Real Estate Association (VNREA), said the domestic real estate market has had a stable and healthy development.
In 2017, the number of real estate transactions increased sharply against 2016. Hanoi and Ho Chi Minh City had 64,263 successful transactions, mainly including affordable and mid-level apartments, Nam said.
Property prices were generally stable. The price rose by 5 percent for apartment and 10 percent for land. Meanwhile, the inventory of property products in 2017 continued to decline by 17 percent year-on-year.
In a survey jointly conducted by VNREA and its Thai partners, it shows that commercial housing projects have been consumed within six months, an expected duration in Southeast Asian countries.
Nam said credit in the real estate sector continued to grow in safe limits. By the end of 2017, outstanding real estate loans accounted for some 8 percent of total outstanding loans. Under the direction of the government, credit for the real estate sector has had a safe development, and more foreign investment has flown to this sector.
According to Nam, State Bank of Vietnam this year should apply a more active and flexible credit mechanism for the real estate market.
At the same time, the government should adopt policies to promote the development of social and commercial houses as well as create conditions for the development of other sectors.
VNREA has also urged the Government to come up with solutions to the existing problems of the property market, including land fund for social houses and cheap commercial houses, as well as regulations for new kinds of real estate, such as condotel, officetel and village resorts. These solutions are expected to create favorable conditions for an impressive growth of the property market this year.