Roadblocks related to credit accessibility, legal procedures, and demand-supply factor must be removed to bolster the recovery of the real estate market, experts said at a forum held in Ho Chi Minh City on May 29.

According to the Ho Chi Minh City Real Estate Association (HOREA), as legal procedure bottlenecks account for 70% of the realty enterprises’ challenges, supports from policy-makers, banks and investors are necessary to develop the real estate market transparently and safely.

Thu Thiem urban area, HCM City (Photo: VNA)

HORE Chairman Le Hoang Chau said that the Government has rolled out a wide range of policies to pull out obstacles for the market, highlighting that its approval for the early enforcement of the Land Law, Law on Housing and Law on Real Estate Business is significant to consolidate the quality of the market which has been mired in difficulties.

Chau expected that new regulations will have positive impacts on the market recovery from the end of this year.

Experts at the forum (Photo: VNA)

Meanwhile, Vice President of Trung Thuy Group Duong Thanh Thuy said the overlaps between the Land Law and Law on Real Estate Business have put realty companies in trouble, elaborating her group could not put up a project for sale for eight years as it has not been priced yet.

While the Government is working to complete legal frameworks, businesses should restructure and choose a development path that is suitable for new trends to welcome recovery opportunities, she suggested.

Regarding measures to unlock property cash flow, Hoang Huy, a strategist from Maybank Kim Eng Securities Vietnam, held that banks should have flexible credit policies while enterprises need to focus on negotiations for bond extension.

He also stressed that the Government should pen rational policies to promote the realty market development in a safe, healthy and transparent manner.

According to Deputy Director of the State Bank of Vietnam’s HCM City branch Nguyen Duc Lenh, real estate credit has been on the rise, with total outstanding debt in the sector reaching some 981.5 trillion VND (38.55 billion USD) as of the end of April, accounting for 33% of the country’s total and up 1.61% year-on-year.

Meanwhile, Deputy General Director of the Vietnam Industrial Parks Truong Khac Nguyen Minh expressed his belief that the realty market will show a clearer recovery thanks to robust signs in both legal frameworks and transactions.

Vietnam has lured some 8 billion USD in FDI from the outset of the year, with 20% of which having been injected into the real estate market, which means the sector continues to be an ideal destination for foreign investors, especially when it has become healthier with more transparent legal mechanisms, he said./.

Source: https://en.vietnamplus.vn/bottlenecks-removed-for-recovery-of-realty-market-experts-post287798.vnp