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Construction Minister: No new housing bubble

Released at: 18:43, 13/07/2015

Construction Minister: No new housing bubble

Minister tells VTV viewers that the recovery in the real estate market is being driven by actual demand, not speculation.

by Thu Hoang

Minister of Construction Trinh Dinh Dung told the “Citizens Ask, Ministers Answer” program on Vietnam Television (VTV) on July 12 that the warming up of the real estate market has not been caused by speculators but rather by actual demand in the market.

In the 2011 - 2013 period, he said, the real estate market was frozen and there were few speculators at that time. Among the measures adopted to spark a recovery in the market was a need for such recovery to accompany the implementation of the National Housing Development Strategy.

Restructuring the real estate market and projects and diversifying products have been conducted since to meet the needs of different customers and to serve actual housing demand.

The market has indeed recovered, he noted, along with the development of social housing projects and the shortcomings in housing supply for Vietnamese people have been addressed.

When asked about the possible return of a real estate bubble, Minister Dung said that some degree of speculation is inevitable as the market warms up with higher transaction numbers. The market must therefore be controlled to prevent a bubble from reappearing.

The Ministry must strengthen the supervision of urban development and market performance along with implementing the National Housing Development Strategy. Supply and demand need to be balanced.

The National Housing Development Strategy was issued to meet the housing needs of the majority of Vietnamese people, which will develop the market in a sustainable manner.

Local authorities also need to focus on developing urban areas and establishing local boards of management to control and predict housing supply in their localities. Any imbalance in supply and demand will therefore be identified and controlled.

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