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Real estate market could not be transparent right now
No real estate trading floor in Vietnam has been recognised as meeting standards as the Ministry of Construction is still compiling standards for real estate trading floors. Therefore, one should not expect to see transparency in the market right at present.
Lacking professionalism
Economists said that Vietnam’s national economy has shown signs of recovery and this is a good opportunity to develop the real estate market. This would be the right destination to attract investment to from foreign sources. However, in order to do that, the Government and enterprises need to make suitable moves.
Deputy Minister of Construction Nguyen Tran Nam said at a workshop on August 1 that the real estate market has good potential to develop, but the legal framework remains imperfect.
Nam said that professionalism is lacking in the market, in every institution from government agencies to enterprises.
The lack of professionalism can even be seen in people’s investments. Most people still follow the crowd and rumours when deciding on investments.
The Real Estate Law and Decree No 153 effective as of January 1, 2009 stipulate that all real estate transactions must be carried out through trading floors. However, in fact, Vietnam still does not have any trading floor which is recognised as a standard floor, since the Ministry of Construction still has not set standards for trading floors.
“Therefore, there are still a lot of jobs to do to have transparency for the real estate market,” said Tong Van Nga, Deputy Chairman of the Vietnam Real Estate Association.
Real estate market: Opportunities for low-cost product developers
Commenting about the real estate market’s performance in the crisis period, participants at the workshop said that the market segment of medium- and low-cost houses now has big opportunities for investors. A lot of real estate developers have shifted to inject money in common products rather than in high-grade products, which have saturated the market.
Vu Thi Hoa, Deputy Chairwoman of the House and Real Estate Management Department under the Ministry of Construction, said that though there are many opportunities for low-cost product developers, there also exist a lot of challenges.
The biggest obstacles for enterprises are investment procedures and capital. The procedures, though having been eased, remain relatively complicated. Meanwhile, many enterprises say that despite the interest rate subsidy programme, it is not easy to seek capital for apartment block projects due to the complicated procedures and banks’ cautiousness in accepting real estate assets for mortgages.
vietnamnet, dt
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