Photo: Duc Anh
Vietnam Real Estate Association identifies measures that would stabilize the property market.
The Vietnam Real Estate Association (VNREA) submitted a number of proposals to develop the real estate market to Minister of Construction Pham Hong Ha at the latest meeting between the Minister, ministry leaders, and representatives from and members of VNREA on August 12.
According to Mr. Nguyen Tran Nam, former Deputy Minister of Construction and now Chairman of VNREA, Vietnam’s property market still faces many risks, such as an imbalance between supply and demand, a shortage of affordable housing, a lack of comprehensive information on general market performance, and weak capacity among developers in investing, implementing and managing projects. To solve these problems and lead Vietnam’s property market towards stable development, Mr. Nam submitted a range of proposals to Minister Ha.
Firstly, the Ministry of Construction (MoC) should direct its departments and city and provincial construction departments to improve awareness of legal procedures relating to the property market. MoC should also review all procedures relating to purchasing future-built apartments to reduce any illegal activity.
As for procedures on foreigners purchasing houses and property in Vietnam, VNREA proposed that MoC issue detailed and specific directions for procedures on money transfers from abroad for property purchases and locations where foreign ownership is limited because of national security concerns.
VNREA also looks forward to MoC’s support and approval for it cooperating with departments at MoC and in localities to receive monthly information on Vietnam’s property performance. An information database could then be established, providing assistance to market management by local authorities and the investment of enterprises.
MoC should also support VNREA in conducting an annual property exhibition, an annual property forum, promoting the development of green construction materials, projects, and urban areas, and issuing new standard rankings in architecture, construction, and new construction materials. All proposals aim at directing the development of Vietnam’s property market in a stable manner into the future, Mr. Nam said.
Minister Ha appreciated the proposals and the contribution made by VNREA to the industry and directed related agencies to study the proposals and report back as soon as possible.
According to enterprises at the meeting, one of the challenges they face when implementing their projects is complicated legal procedures. They now spend an average of 166 days on being granted an investment license, up from 114 days last year. “Departments of Construction in localities should work on simplifying these procedures,” Ms. Huong Tran Kieu Dung, CEO of the FLC Group, told the gathering.
According to VNREA, in the first half of this year Vietnam’s property market saw stable performance. There were a total of 15,300 transactions in Hanoi and Ho Chi Minh City, lower than in the same period last year (18,000), but transaction value was higher. Property prices increased 3-7 per cent in the first half compared to 3-5 per cent in the first half of last year.
- Nguyen Tran Nam
- Ministry of Construction
- property market