Business » Real estate
Two major solutions for frozen real estate market
  • | VGP | December 27, 2012 09:07 PM

Converting commercial housing projects into social ones and allowing foreigners to buy houses are among the solutions to defuse the current sluggish real estate market, according to the Government’s draft resolution.

 

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

The Government will review all housing projects to decide which ones will be continued or terminated.

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

Accordingly, 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 VND 24,500 billion in Ho Chi Minh City. Meanwhile Hanoi has inventory of nearly 5,800 apartments and 3,483 semi-detached houses.

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

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