Gov’t to adopt specific resolution to unfreeze real estate market

The Government chief also tasked commercial banks to focus on dealing with bad debts relevant to the real estate market by restructuring loans and designing financial institutions to support the market.

Weak enterprises will not be allowed to participate in real estate business and all projects currently undergoing site clearance or in appropriate to planning schemes must be terminated, PM Dung stressed.

He suggested the city should pay more attention to housing construction for the poor, students, workers in industrial parks, civil servants.

Real estate companies were asked to restructure and lower the prices of their products.

The Government chief also noted the necessity to perfect the legal system on urban housing development in line with market demand and economic capability.

PM Dung requested Ho Chi Minh City in particular and other localities to review their planning work-one of the weakest areas- and set specific strategies for real estate market development

Speaking at the working session, Minister of Construction Trinh Dinh Dung urged the city to suspend inappropriate projects and focus on social housing projects.

Meanwhile, SBV Governor Nguyen Van Binh asserted that the central bank is ready to provide credits for those who actually have demands for housing. In Q1 and Q2, 2013, SBV would direct commercial banks to deal with non-performing debts in this field.

At present, Ho Chi Minh City had inventory of 14,490 apartments worth of VND 24,500 billion. Meanwhile, housing prices are extremely higher than the average income levels of the majority of people. Speculation and high interest rates have made the problems worse.

Some years ago, the Vietnamese real estate sector was considered the most lucrative business field. However, since the real estate market has hibernated, apartments and houses have been left unsold.

The investors’ capital has been “buried” under the property projects. Though the real estate project developers have tried to boost sales by offering big price discounts, the sales still have been going very slowly, because the land in Viet Nam is still believed to be the most expensive in the world.

Amid the weak demand, real estate developers have to delay the implementation of their huge projects. Not only the housing market, but the office market has also become gloomy.