Vietnam's real estate market has been recovering thanks to effective government policies, an official said, dismissing concerns that the recent rapid increase in property transactions was caused by speculation.
Minister of Construction Trinh Dinh Dung said in a TV interview on Sunday that the government has introduced various solutions to restructure the market, which started freezing in 2010.
While he did not completely reject the possibility that speculation still existed, he said the market has been stabilized.
"What matters is that we need to control the market so it will not become overheated, resulting in a bubble."
The government will "strengthen control" over real estate projects, continue restructuring the market as well as housing projects and products so no sectors will see either redundancy or shortage, according to Dung.
A report released by the construction ministry's Department for Housing and Property Market Management last month showed that Vietnam's real estate market has been recovering since the end of last year.
Over the first half of this year, both Hanoi and Ho Chi Minh City saw a year-on-year double increase in property transactions, with 9,250 and 8,750 deals, respectively.