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Property market needs gov’t nurturing
The Government should adopt appropriate policies to ensure the property market, especially the low-price housing segment, develops in a healthy and sustainable manner, delegates told a conference in Ha Noi on Saturday.
Tong Van Nga, permanent deputy chairman of the Viet Nam Real Estate Association, said despite the current economic downturn, investors continued to pour money into property projects since there was still a big gap between supply and demand.
However, they face many hurdles, including bureaucratic, that they want the Government to remove by reforming regulations and policies, he said.
Vu Thi Hoa, deputy director of the Ministry of Construction’s Department of Housing Management and Real Estate Market, said that although the Government offerred many incentives to develop the low-price housing segment, lengthy procedures and funds issues had prevented investors from taking advantage.
"Although procedures for social housing projects had been simplified, they were still tortuous, she admitted.
Investors also found it hard to get credit for social housing projects under the Government’s stimulus package because of tough requirements from commercial banks, she added.
Le Khac Hiep, chairman of Vincom Property Joint Stock Company, said: "Site clearance is also a major hurdle for property developers. If there are clear-cut policies for paying compensation to acquire land, developers will find it more convenient."
Deputy director of Dat Lanh Real Estate Company Nguyen Van Duc said the existing practice of negotiations between the developer and landowner was one of the reasons pushing up compensation rates in urban areas.
As a result, most housing was beyond the reach of low-income earners, he said.
"We hope that authorities adopt more practical policies to promote a sustainable real estate market."
Deputy Minister of Construction Nguyen Tran Nam said to improve things his ministry was drafting a policy framework for real estate and land administration which would be submitted to the Government for approval soon.
He said if the real estate market developed in a healthy and sustainable manner, it would provide a boost to other markets, including the financial, stock, and construction markets, helping the Government’s stimulus package succeed.
vietnamnews
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