Construction Minister Pham Hong Ha (standing) responds to lawmakers' questions on June 4 (Photo: VNA)Hanoi (VNA) – Lawmakersvoiced their concerns about the high real estate prices which is about 25 timesof average income, and the uncontrolled rising property prices in somelocalities during a question-and-answer session at the National Assembly onJune 4.
Construction Minister Pham HongHa said many limitations of the real estate market have their roots in theoverlapping and even contradicting regulations in real estate-related laws. Theproduct structure of the property market is unbalanced, with oversupply in somemid- and high-range segments while there is a shortage of social housing andaffordable commercial housing.
The minister also underlined thelack of financial resources for the property market. He said the market dependson bank credit and customers’ advance payment, while investors’ own capital accountsfor about 15-30 percent of total investment.
He presented statistics that showedoutstanding debts in the property sector stood at around 479 trillion VND as ofthe third quarter of 2018, or 8 percent of total outstanding credit, which wasstill at the safe level. However, the flow of credit concentrated on a numberof big investors and high-risk segments.
Regarding solutions to those problems,Minister Ha emphasised the need to continue to complete institutions andsynchronise laws from land planning, financial mechanisms, investment and constructionto management.
He said efforts should focus on developingsocial housing and small- and medium-sized commercial housing, adding that hisministry will recommend ways to encourage firms to invest in social housing.
The Construction Minister wasthe second Government member to go before the NA in the question-and-answer(Q&A) session that began in the morning of June 4, following Minister ofPublic Security To Lam.
The Q&A session will lasttwo days and a half as part of the ongoing 14th NA’s 7th session, and will bebroadcast live nationwide.-VNA
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