Major solutions to defuse sluggish real estate market

Converting commercial housing into social apartments and allowing foreigners to buy houses are among the key solutions to defuse the current sluggish real estate market, according to a recent Government draft resolution.

Under the resolution, the Government will adopt policies to encourage social housing development so that low-income groups can afford to buy or rent houses.

The Government will review all ongoing housing projects to decide which ones should continue or stopped.

Besides, the Government will also consider removing barriers against foreigners who want to buy houses in Vietnam in order to defuse the frozen real estate market.

Specifically, the Government will amend the Housing Law towards expanding range of buyers. The revised bill will be submitted to the National Assembly for consideration.

The draft document also says that the Government will instruct and support real estate businesses to restructure their operations.

Other possible solutions include the establishment of funds on housing and real estate investment, of channels for medium and long-term investment mobilization for the market.

Official statistics show that the volume of unsold apartments is huge, with 14,490 apartments worth VND24,500 billion in Ho Chi Minh City. Meanwhile Hanoi has inventory of nearly 5,800 apartments and 3,483 semi-detached houses.

Housing prices are higher than the average income levels of a majority of people. Speculation and high interest rates have also made the problem worse.

Source DTTC, translated by MT

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