Urban dwellings to become property market core in 2023

December 15, 2022 | 11:02
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This was stated by Le Viet Hai, vice president of the Saigon Construction & Building Material Association (SACA), during the Dynamics of Vietnam's Economic Development 2023 seminar held on December 14 in Hanoi.

Leaders from the Ministry of Construction (MoC), relevant departments and institutes under the MoC, and representatives of relevant ministries and business associations – including those from the Vietnam National Real Estate Association, the Vietnam Association of Construction Contractors, and Vietnam's Association of Foreign-Invested Enterprises – took part in the seminar.

Urban dwellings to become property market core in 2023
The Dynamics of Vietnam's Economic Development 2023 seminar

Deputy Minister of Construction Nguyen Tuong Van stressed that construction is a critical and strategic field that plays a significant role in the country's socioeconomic expansion and is among the principal factors that influence the country's advancement scale, technical level, and economics.

"The MoC seeks to adopt several solutions to enhance the effectiveness of urban planning and administration. The real estate market has significantly expanded in terms of both its size and the capabilities of its players. The system of standards, rules, and unit costs for buildings has been examined and finalised," stated Van.

Housing projects for low-income individuals, housing for employees, and urban housing will be the emphasis of next year's real estate market growth, according to the vice president of SACA. In addition, he stated that resort real estate would continue to face hardships in 2023.

According to Hai,the whole market is experiencing a supply and demand mismatch. Therefore, he offered a solution that includes the provision of public and open construction market information.

"I believe that one of the primary causes of the market's challenges is the tourist real estate sector. No real estate company can afford loans with repayment lengths of just 3-5 years when projects cannot be developed. This is no longer a market-driven adjustment. It is clearly an issue that real estate enterprises could not foresee," said Hai.

In addition, he said that investors should consider the whole market to minimise supply and demand imbalances. The state should develop a licenced website that offers information on planning, real estate transactions, and projects under consideration. This will aid investors in making more informed judgments when introducing new items to the market, resulting in increased efficiency in the construction and real estate markets.

Vice chairman of the Vietnam National Real Estate Association Nguyen Van Dinh said, "It is vital to stabilise the macroeconomy, build safe real estate, and provide social security by focusing on state management agencies, enterprises, and people."

Dinh requested that the government give the prime minister's working committee on real estate and local authorities the responsibility of compiling data on project issues. These units should then report to the government and the National Assembly so the authorities can respond swiftly.

"The local government must evaluate and revise land use plans and spatial planning, implement development programmes, and manage the housing system on the real estate market, particularly housing for low-income individuals and worker housing," Dinh noted. "In addition, in order to expedite the project's implementation, the authorities must prioritise and monitor variables such as facilities and infrastructure systems and investment processes must be streamlined to support firm growth."

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