In the program “People ask – Minister answers” on 12 July, Minister of Construction Trinh Dinh Dung was answering questions of people on the issue of real estate bubble, the slow progress of society housing projects …
Q: Current real estate prices in many segments are growing rapidly, some projects are nearby top of price in 2011. It is said that the real estate market is heating up due to speculation rather than real demand. What is your views about this idea, Minister?
Said that the real estate market recovers and have many transactions are due to speculation is incorrect. Because we all know that the period 2011-2013 the market froze, there was no speculation or just a little bit.
Meanwhile, the measures to remove difficulties for the real estate market is made. Among all the solutions, to mount defrosting market to implement national housing is considered the most efficient idea in order to unlock the door to real estate market recovery.
From there, the solution to the market structure, projects, real estate products to diversify the product towards consumers, consistent with many objects have different affordability, to transfer from surplus areas into shortage areas are. Thus, the market has recovered.
Minister of Contruction (MOC), Mr. Trinh Dinh Dung
Q: Then, according to you, with fast rising house prices and series of banks pump capital into real estate market, would it occur the real estate bubble as 4 or 5 years ago?
As the transactions increase, the speculative investment returns is inevitable. The main problem is that we can not control the rocket-speed growth of the market making the bubble. The only way to achieve is controlling well the development of city and balancing between supply and demand.
In detailed, we should strengthen the control of many more real estate projects, restructure the market, projects and housing product in order to balance them with the affordability of people as ensure the balancing betweens areas.
Therefore, we should have strictly implement on 2013 November Decree of the management of urban development investment, which requires following plans. Thus, region should focus on develop urban areas, planning way to balance supply and demand, resources and development capability of each area. By that, we can control and overcome self-development as in the past, which make the problem of unbalance and difficulty to the real estate market.
Vinhomes Central Park Project from Vingroup receives many notices at the moment.Q: What is the reasons of slow pace in social housing projects?
Decrees and regulations on development of social housing are just completed in 2015 and the Housing Laws has just applied. So that our policies are rank new till now. However, with the drastic of local and government, we built about 40,000 social house to nearly 200,000 people.
However, the implement of social housing projects is slow. The reason is that the policy is new and for long-term, so it doesn’t work in medium or short-term. Besides, it needs so much money to develop social housing building while the state budget doesn’t have enough to invest but need socialization. Another problem is that the projects requires good quality houses with cheap price, to suit low income people. Therefore, investment in social housing is not attractive to investors, which is also the cause of slow implement of social housing project.
MOC have any solutions to accelerate the progress of social housing projects?
We must improve the system of laws concerning with the house projects, create good environment to develop social house project. Besides, local government should have plan and programs to improve the development of social house project, and should take this as a 5-year politics target.
The local should prepare land budget as a good condition for businesses to use more labour, as well as for real estate company to invest in social house projects in purpose of business. At the same time, the provinces need to make conditions for people to invest in development social house for employees of industrial parks. In doing so, I believe that people with need could improve their house and life.
Compiled VietApartment NEWS