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Property market needs capital and price solutions
Property traders can often make good profits, but there are risks. Like in all markets, prices in Viet Nam fluctuate in price and there is often an imbalance between supply and demand. Lack of transparency is another problem. A Viet Nam News Agency reporter sought suggestions from experts about improving the domestic property.
Vu Dinh Anh - Deputy Head of the Market and Price Research Institute:
Two-thirds of transactions on the domestic real-estate market are unofficial because they are funded with "hot" capital mobilised from high-risk, unstable resources that flood in and out.
Putting a stop to this capital is nigh on impossible because medium and long-term capital from official sources is limited. This makes establishing a more legitimate property market difficult. If the State does not manage short-term capital or reduce the risks of short-term capital.
I think, there should be an intermediary financial organisation to ensure payments on the property market after the property is assessed. The State could also introduce regulations to stop credit being used for the wrong purposes on the property market and improve management.
As securities, all short, medium and long-term capital resources should flow to the property market via an official financial system that could also deal with any violations.
Nguyen Tran Nam, Deputy Minister of Construction:
The cost of homes in Viet Nam is among the highest in the world. This means that it is a sellers' market. Many would-be home buyers now have difficulty affording a house.
As supply and demand rules, prices stay up if there is short supply. This could be improved by finishing housing projects as quick as possible to increase supply. Besides this, contracts between buyers and investors should not violate any laws to ensure the interests of buyers.
Dang Hung Vo, Former Deputy Minister of Natural Resource and Environment:
High demand for land and houses is vital for the economy. However, the high price of land and homes is not good for development.
Some investors have used land for construction projects for the wrong purpose. This has contributed to the declining supply of homes.
A reduction in the price of land and homes would make the property market healthier. Initially, the State's management of the property market should be improved. Renovation of the financial management system for the property market together with administrative improvements would help the property market develop and reduce speculation.
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