Vietnam must eye bubble: Deputy PM

The State management agencies and local authorities must be cautious with the real estate market performances and wary of a market bubble, Deputy Prime Minister Trinh Dinh Dung reiterated recently.- Photo cafef.vn

Although the property market is on a stable trend and contributed significantly to the country’s economic development after a protracted period, close watch must be placed on the market development, Dung said.

At the meeting late in May, Dung said that the Ministry of Construction and local authorities must enhance market watch to ensure the market develops on the right track, prevent crisis and ensure a sustainable growth.

Several days after, at a meeting on June 1, Dung requested those present to implement measures to ensure the stability and healthy development of the real estate market, adding that this was critical to ensure macro-economic stability.

Dung said that the property market development must be in line with the country’s housing development strategy, especially social housing development, urban, industrial zone and tourism development and balance of supply and demand.

Dung reiterated this during a Government meeting on June 3.

The Deputy Prime Minister’s request was raised at a time when the land prices in HCM City soared in the recent months on rumours of new infrastructure projects that would benefit land prices.

Actions have been taken to calm down the land “fever” in the southern city. The construction ministry asked the HCM City’s public planning information and property agency to ensure transparency in its infrastructure projects.

On June 3, Directive 24/CT-TTg was issued about the solutions to promote growth to reach the economic targets in 2017, in which Prime Minister Nguyen Xuan Phuc asked the Ministry of Construction to closely watch the real estate market performances, actively raise measures to promote its healthy development, prevent speculation and unreasonable increases in prices and ensure the market transparency.

The State Bank of Viet Nam recently said that the credit growth for the real estate sector slowed down in the first five months of this year.

The Ministry of Housing and Real Estate Management Department under the construction ministry said that housing prices did not see significant increases in the period.