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2019 – CHEAP PRICE HOUSES, TIME FOR BACKGROUND AREA LAND?

Date 21/09/2021

Focus on developing social and cheap prices houses

Deputy Minister of Construction Nguyen Van Sinh said that 2019 is a priority year for social housing development . In the urban area, it has only completed 3,92 million m2, reaching about 31% of the target set in the Housing Development Strategy, by 2020, it needs to reach 12.5 million m2 of social houses. However, businesses are facing many difficulties due to lack of preferential credit sources. Therefore, in the short term, the Ministry of Construction continues to propose to competent agencies to soon allocate capital for commercial banks to continue lending to implement the social housing policy. Enterprises need to put customers’ interests first, keep prestige, ensure construction quality, construction progress,…

According to Professor Dang Hung Vo, developing affordable commercial housing is the most effective solution to solve the housing needs of the majority of people. “On the other hand, instead of looking for the state’s assistance, we need to find ways to encourage many resources. If the state focuses on building a mechanism for exemption and reduction of some taxes related to real estate business such as VAT, corporate income tax for this type of housing, the price will definitely decrease. In addition, it is necessary to form low-cost housing development funds and encourage the contributions of businesses, commercial banks, social organizations and individuals”, Mr. Vo said.

According to Mr. Vo, the 2013 Land Law needs to be amended to ensure that economic organizations have long-term land use rights to solve housing problems for workers. In particular, it is necessary to continue negotiating ODA loans to access concessional loans for low-cost commercial housing development.

Will land price increase?

Commenting on the real estate market in 2019, Mr. Nguyen Van Dinh, Vice Chairman of Vietnam Real Estate Brokerage Association, said that credit in 2019 in the short term was affected by the “brake” of the State Bank. However, besides, one good point is that limiting lending contributes to the purification of weak real estate enterprises, mainly depending on capital from banks. Large businesses on the basis of available resources will continue to grow.

Project Kosy Song Cong urban of Kosy Group in Thai Nguyen province

Mr. Dinh said that the provinces surrounding Hanoi and Ho Chi Minh City, the central provinces from Thanh Hoa to Binh Thuan are on their way to heavily invest in economic, industrial development and urban areas. It is a favorable condition for the real estate market to stabilize and develop in 2019.

According to Mr. Dinh, the local land base continues to be the main product. Some localities have good urban infrastructure investment, will appear shophouse products. In 2019, the land price in the provinces will increase in the range of 10-15%. Commercial apartment prices in provinces and cities not belonging to special cities are only from 10 to 15 million VND/m2 …

According to Mr. Dinh, Phu Quoc and Van Don areas will no longer have hot, virtual, bubble fever phenomenon but will still grow very well thanks to favorable factors for tourism development because of a very strong investment in infrastructure system. In addition, in 2019, there will be more deals and transactions of investors of real estate projects. Mr. Dinh also issued a warning that the provinces need consider rational allocation according to the stage of approving new development of real estate projects, avoiding mass approval, creating a large excessive supply.

Deputy Minister of Construction Nguyen Van Sinh said that the 2019 real estate market is forecasted to continue to grow stably, there is no risk of “real estate bubble”. The market may continue to increase the land price in the planned areas to become special zones and new urban areas to invest in synchronous infrastructure and local heating conditions at some projects, housing projects in urban centers having fast construction progress, reputable investors, reasonable prices.

The market may continue to increase the land price in the planned areas to become special zones and new urban areas to invest in synchronous infrastructure and local heating conditions at some projects. Housing projects in urban centers have fast construction progress, reputable investors, reasonable prices.

– Source: Tien Phong newspaper –

 

 

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