Real Estate Companies Facing Numerous Difficulties

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HoREA

Sáng 11-3, Phó Thủ tướng Trần Hồng Hà chủ trì cuộc họp trực tuyến Tổ công tác của Thủ tướng Chính phủ rà soát, đôn đốc, hướng dẫn tháo gỡ khó khăn, vướng mắc trong triển khai thực hiện dự án bất động sản cho các địa phương, doanh nghiệp sau khi các Luật mới được ban hành (Luật Đất đai, Luật Nhà ở, Luật Kinh doanh bất động sản). Hội nghị có sự tham dự của nhiều bộ, ngành, địa phương, hiệp hội.

Real Estate Market Challenges

The Vietnamese real estate market continues to face significant challenges despite recent government efforts to address them. According to the Ministry of Construction, these challenges have persisted since the end of 2022 and are still ongoing. Some of the difficulties include:

  • Delays and disruptions in project implementation
  • Difficulties in accessing credit, issuing bonds, and raising capital
  • Decreased purchasing power and liquidity in the market
  • Limited supply but increasing housing prices, making it unaffordable for many citizens
  • Adverse effects on various sectors, social security, and public order

Legal Issues and Business Challenges

Real estate companies are also experiencing numerous difficulties and obstacles related to legal issues. These challenges involve land, planning, investment, housing, urban development, and construction. Some specific issues include:

  • Legal issues in land management and planning
  • Restrictions on commercial residential projects when other non-residential land is available
  • Delayed approval of investment proposals for projects with existing investment certificates
  • Conversion of apartment area and conversion price in compensation plans
  • Slow response from authorities regarding credit sources, bond issuance, and business proposals
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Even though recent legislation has been enacted to address some of these challenges, they are not yet effectively resolved.

Solutions for the Real Estate Market

To overcome these difficulties, the Ministry of Construction and other relevant agencies will focus on the following tasks and solutions:

  • Finalizing detailed regulations and guidelines for implementing the Housing Law and the Real Estate Business Law
  • Providing timely guidance and support to resolve legal administrative procedures
  • Encouraging local authorities to address the difficulties and obstacles faced by real estate projects
  • Strengthening land management and prices determination
  • Promoting credit restructuring for real estate projects
  • Encouraging real estate companies to adjust their market segments and prices to ensure liquidity and project execution

According to Mr. Lê Hoàng Châu, Chairman of the HCMC Real Estate Association (HoREA), “legal obstacles” account for 70% of the difficulties faced by real estate investors and developers.

For more information on the challenges faced by real estate companies, visit Business Today.