Property market on road to recovery

Thien Thanh Sanitaryware joint company

Property market on road to recovery

Potential is seen in the development of the Vietnamese property market in the next 10 years, as it is now on the path of recovery.

With the Government's efforts to restructure the property market, housing prices have since stabilised amid rising liquidity and falling inventories, noted Nguyen Manh Ha, Director of the Housing and Real Estate Market Management Department under the Ministry of Construction.

Ha said the positive trend will continue this year and the structure of housing products is gradually adjusting to market demand.

Planning and management shortcomings have caused an imbalance in the property market, which fell into stagnation from 2011 to 2012 with inventories topping 100 trillion VND (4.7 billion USD) in 2012, Ha revealed.

Experts cited Government breakthrough policies to tackle market difficulties and help the realty market get back on track.

The laws on the real estate business and on housing, which the National Assembly is reviewing for possible amendment, are also expected to create new stimulus for the realty market.

Ha predicted the continued existence of opportunities for property market development in the next 10 years, adding that an improved legal system and tightened management are critical to enhancing land use efficiency.

Policies to attract capital into the property market are also needed, Ha explained, expecting that property-related taxes and fees to fine-tune market development in each segment will be in line with real demand, thereby ensuring social security and preventing speculation.

The establishment of housing funds is also an indispensable solution, as arranging capital for housing projects is now an urgent matter, Ha added.

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