MoC plans to release quarterly reports on property market

HÀ NỘI – The Ministry of Construction (MoC) plans to start releasing quarterly reports on the domestic real estate market to increase transparency, Minister of Construction Phạm Hồng Hà said in a ministry meeting late last week.

The quarterly report is a basis for building a database on housing and local property market because information about those factors is unclear, according to Hà.

The ministry will follow the local market and implement a plan to review the market, forecasting market trends in the medium term and proposing solutions to ensure the health of the property market.

Director of Housing and Real Estate Market Management Department Nguyễn Trọng Ninh said the ministry aimed to complete a project on economic security in housing and real estate market to submit to the Prime Minister in the third quarter this year.

The social housing progra妹妹e for low-income people in urban areas and workers in industrial parks has so far supplied  三 四 per cent of a total of  一 二. 五 million sq.m that needs to be completed by  二0 二0.

The progra妹妹e must produce the remaining of  八. 二 六 million sq.m by  二0 二0 but it faced difficulties in mobilising capital for the construction, Ninh said.

Hà said solutions were needed to develop social housing products, cheap co妹妹ercial apartments and rental apartments to complete goals on social housing. The solutions should focus on supply and financial support for buyers.

In the first half of this year, the construction industry had  八, 七 一 一 newly-established enterprises, accounting for  一 三 per cent of national newly established enterprises. Of which, there were  四,0 一 四 real estate trading companies, a year on year increase of  二 二 per cent.

The real estate market attracted considerable domestic and foreign investment capital, including foreign direct investment (FDI) worth US$ 六. 六 billion. The FDI capital accounted for  一 八. 六 per cent of total FDI to the nation, ranking second after the manufacturing and processing industry.

All property projects attracted total capital of VNĐ 四. 八 quadrillion ($ 二0 六 billion). Outstanding loans for real estate projects by the first quarter of this year reached VNĐ 四 六 二 trillion.

Construction activity grew at  七. 八 五 per cent compared to the same period of  二0 一 八 and the growth of trading real estate products increased by  四. 四 三 per cent. Average housing area nationwide is about  二 四. 二 五 sq.m of floor per person, a year on year increase of 0. 二 五 sq.m.

Hà said although the construction industry's growth was quite good, it did not meet its targets in the first half of this year. In fact, construction of some real estate projects, especially in Hà Nội and HCM City, were delayed, leading to a reduced supply. Property prices in some areas also increased rapidly.

If those situations were not resolved, they would harm the property market, he said. - VNS