REAL ESTATE MARKET SCHEME SUBMITTED TO THE GOVERNMENT

To shape a stable, transparent, non-speculative and non-bubble real estate market, the Ministry of Construction is completing the project on “Assessing the market, forecasting medium-term trends, proposing solutions and mechanisms to promote stable and healthy market development” to submit to the Prime Minister in late 2017.

Accordingly, this project will focus on solving unreasonable obstacles in market operations, especially on market transparency factors. According to the governmental guideline, it is necessary to perfect mechanisms and policies on the housing segment for low-income and middle-income people to meet majority needs. But, in order to achieve this goal, the financial solution is quite important and requires the coordination of relevant ministries.

The property market has maintained stable performance since the beginning of the year, according to the Ministry of Construction. Such factors such as price, deals and liquidity are quite stable while inventories continue to drop. The commodity structure is being adjusted to meet diverse market needs and credit flows channelled into the property market kept growing strongly.

Vacation property or second-home property market is developed rather robustly in Da Nang, Phu Quoc and Nha Trang, as liquidity is high. This segment is catching the rising interest of domestic and foreign investors. This is one of major contents included into the scheme submitted to the Government by the Ministry of Construction. In addition, the ministry will strengthen law enforcement inspection and supervision, housing and property market database. To have accurate figures, the ministry sent requests to this effect to localities to review and integrate reports on urban projects, housing development projects and vacation property projects. It also established inter-agency inspection teams to check the performance of high-grade, large-area real estate projects in some locations. The investment in the construction of local administrative complexes is also taken into account.

Market transparency has been an unachieved objective for many years and this is seen as the “most effective” tool to head for a healthy real estate market, which is of great concerns of the public and the business community. For the time being, data compiled by consultants vary widely, even with incorrect data being found in some reports.

With the regularly and continuously updated information system on the real estate market, this is considered an important source for authorities to figure out planning and management and for enterprises to determine deals.

Source: VCCI