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Ho Chi Minh City deploys solutions to overcome difficulties in the real estate market

Revenue from real estate business activities in the first 10 months of the year in Ho Chi Minh City is estimated to reach 186,662 billion VND, down 4.3% (compared to the same period last year); Previously, the first 6 months of the year decreased by 8.3% and the first 4 months of the year decreased by 14.6%. City. Ho Chi Minh is trying many solutions to overcome difficulties in the real estate market in the coming time.


Supply remains high


According to Mr. Vu Anh Dung - Deputy Head of Housing Development and Real Estate Market Department, City Department of Construction. In Ho Chi Minh City, real estate business activities in the city up to now, although still facing many difficulties, have gradually recovered in both growth rate and revenue. The commercial housing supply is higher than in the same period last year. However, domestic and foreign investment capital poured into real estate business activities decreased sharply. The supply of affordable housing has no products on the market.


Vietnamese real estate market

Specifically, statistics show that real estate business activities in the city in the first 9 months of 2023 decreased by 8.71% (compared to the same period last year); The first 6 months of 2023 decreased by 11.58% and the first quarter of 2023 decreased by 16.2%. Revenue from real estate business activities in the first 10 months of the year was estimated at 186,662 billion VND, down 4.3%; The first 6 months of the year decreased by 8.3% and the first 4 months of the year decreased by 14.6%.


Also according to statistics from the Department of Construction, in the first 10 months of the year, City. Ho Chi Minh City has 1,252 real estate businesses licensed to be established, down 43.7% and registered capital reached 46,792 billion VND, down 58.3%. Total foreign investment in the real estate business in the first 9 months of the year was 72.2 million USD, down 66.3%.


Regarding housing supply, it is expected that in the first 11 months of 2023, 16 commercial housing projects will be announced to be eligible to sell, rent, and buy future housing products with 16,063 units launched on the market. the school (including 14,810 apartments and 1,253 low-rise houses), of which the high-end segment has 11,012 units and the mid-range segment has 5,051 units, with no housing in the affordable segment. Thus, the housing supply put on the market in the first 11 months of the year increased by 16.8%.


A series of solutions to solve difficulties in real estate


Recently, the City Real Estate Association. Ho Chi Minh City (HoREA) reported on the real estate market situation in the first months of 2023 and proposed a number of credit solutions to effectively implement the Government's guiding and administrative documents. Prime Minister (especially Official Telegram No. 993/CD-TTg).


Vietnamese real estate market

According to HoREA, in order for commercial banks to continue promoting credit lending to the real estate sector, the first solution is the "non-credit" solution. That is for competent agencies from central to local levels to urgently remove legal obstacles for real estate projects, to both qualify for credit loans and create conditions for investors to develop. project implementation.


Along with that, in order to implement "non-credit" solutions and remove legal obstacles for real estate projects, HoREA believes that it is necessary to further promote the role and responsibility of the Head of the Ministry's Working Group. Head of the Ministry of Construction.


In addition, HoREA proposed the State Bank (SBV) a series of credit solutions, which suggested: that SBV consider amending and supplementing Article 7 of Circular 39/2016/TT-NHNN in the direction of "relaxing a few" loan conditions, not stipulate "customers have all the conditions" but only stipulates "customers have conditions" and adds the method "customers agree with the credit institution to hire a consulting unit". Independent consultants carry out appraisal of the feasibility of investment projects and appraisal of the project's cash flow; appraisal costs are paid by the customer.


This is to support commercial banks in appraising and evaluating the feasibility of investment projects and creating favorable conditions for customers to access credit.


HoREA requests that the State Bank of Vietnam strengthen instructions for commercial banks to continue implementing Circular No. 02/2023/TT-NHNN on restructuring debt repayment terms and maintaining the same debt group to support customers facing difficulties in a short period of time. a certain period of time until the economy recovers and growth returns to normal, to increase the "resilience" of businesses and have more opportunities to access new credit loans.


At the same time, the association requested the State Bank to consider abolishing Clause 8, Clause 9, Clause 10, Article 8 of Circular No. 39/2016/TT-NHNN (amended and supplemented in Clause 2, Article 1 of Circular 06/2023/TT -SBV), to create conditions for credit institutions and customers to review and approve loans and credit loans.


HoREA also proposed that the State Bank consider amending and supplementing Clause 1, Article 194 of the draft Law on Credit Institutions, adding regulations for "the transfer of projects, part of real estate projects as collateral assets". of that debt according to the provisions of the law on real estate business" to "reference" the Law on Real Estate Business, ensuring the synchronization and unity of the legal system.


"Unusual solution" dealing with "unusual situation"
HoREA said that it highly appreciates the SBV's timely issuance of Circular 02/2023/TT-NHNN and believes that this is circular with a very special role and position, and is an "unusual solution" to handle an "unusual situation", so the Association requested the State Bank to direct credit institutions to continue implementing Circular 02/2023/TT-NHNH for a certain period of time until the economy recovers and Growth returns to normal.

(Theo Thoi bao tai chinh)


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