Can the real estate market recover in the last 6 months of the year?
At a recent conference, a representative of the Ministry of Construction said that, after very drastic instructions from the Prime Minister as well as the Action Group. Up to now, the initial obstacles which are legal issues for real estate projects have been basically removed.
In recent months, the Prime Minister's Working Group has worked with localities, reviewing 180 projects in Ho Chi Minh City, 170 projects in Ha Noi and 75 projects in Da Nang. In which, a number of large projects would directly affect many investors in the market.
"If it is under the jurisdiction of the localities, the localities must deal with it. Therefore, the Action Group is actively reviewing together with localities to remove and avoid waste. Currently, we are seeing many projects have to stop construction. Following the direction of the Government, the Action Group worked with Dong Nai authority, related to 7 projects of corporations such as Novaland, Hung Thinh, and DIC. These are projects that are discussed and removed immediately with the Provincial People's Committee. On the basis of work, the province will review and clarify this," said Deputy Minister of Construction Nguyen Van Sinh."I hope that departments and branches issue specific guiding documents for each locality. Because when we issue a general document, many localities have different perspective" said Mr. Le Dinh Chung, General Director of SGO Home.
Another development that is also attracting great attention from the real estate market is that the deposit interest rates of banks continued the down trend that started from May. Many joint stock commercial banks with large market shares apply the popular deposit interest rate around 8%/year for a 12-month term. Meanwhile, the group of 4 big banks including Agribank, BIDV, Vietcombank and Vietinbank maintained the 12-month deposit interest rate at 7.2%/year.
"I greatly appreciate the Government's drastic participation at this time. If the deposit interest rate can be reduced, the lending interest rate will be reduced, when the interest rate continues to have a clear reduction route, the cash flow in society will be cleared and the market will recover strongly," said Mr. Tran Quang Trung, OneHousing Business Development Manager.Capital and legal are the two biggest obstacles in the real estate market. Records from the market show that buying and selling transactions of accommodations such as apartments and affordable residential real estate are still in strict progress. When the above problems are removed strongly, the market will have the prospect of a gradual recovery in the last 6 months of the year.
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