Real estate bubble not in sight in Vietnam: Ministry

In its regular press brief yesterday, the Ministry of Construction affirmed a realty estate bubble will not be in sight in 2018 as experts warned.

Real estate bubble not in sight in Vietnam: Ministry

Land prices in some special administrative economic units such as Van Don district in the northern province of Quang Ninh, Van Phong district in the central province of Khanh Hoa and Phu Quoc district in the Mekong delta province of Kien Giang has cooled 
However, land fever is still gripping in some districts of Ho Chi Minh City, Da Nang and Hanoi.
According to the Ministry, from now to end of 2018, property market will go up in terms of quantity and transaction but there will be no bubble due to no changes in supply and demand. Plus, the government still control market.
As of this time, value of Vietnam’s housing stock rises to VND24,072 billion ($1 billion), an reduction of VND104,476 billion accounting for 81.27 percent.
In the last six months of the year, the Ministry announced to finish vital projects including Assessment and prediction of property market, measures to boost up the market, management mechanism for stable and sustainable market
The Ministry also said social housing projects are facing hiccups along the way despite finished policies. Specifically, the government will support social housing developers and borrowers through loan in social policy banks and credit institutions. However, the capital sources are dependent on public investment plan so it is difficult to carry out.
As per plan, in the period 2018 - 2020, the government will allocate VND1,400 billion to support social housing project; notwithstanding, just VND250 billion has been allocated and VND30 billion has been disbursed, much lower than the target.
Upon the repairing of old condominium, the Ministry said the implementation process is very sluggish because inhabitants in the old condo have not selected investors. Next time, the Ministry will select investors in lieu of inhabitants
Local governments should facilitate investors and report their difficulties during the way to the Prime Minister.

By BICH QUYEN – Translated by UYEN PHUONG

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