HoREA proposes measures to solve the shortage of housing supply

High house prices still do not see “peak”

Currently, the real estate market in Ho Chi Minh City is out of phase – supply and demand, lack of housing supply. Especially affordable commercial housing and social housing. This has led to house prices in the city continuously peaking, the market almost “extinct” products under 2 billion VND. Therefore, many workers and workers have difficulty in owning houses.

Facing the above situation, Mr. Le Hoang Chau – Chairman of Ho Chi Minh City Real Estate Association (HoREA) said that this unit has sent an official dispatch to the Prime Minister about some urgent proposals to solve the situation. lack of housing supply and drag house prices to stabilize the real estate market.

Exchange with Vietnamese peopleCurrently, the market is very short of housing supply, especially affordable commercial housing and social housing, said Mr. Le Hoang Chau. These are two types of houses that meet the real needs of the majority of middle-income people and urban low-income people.

Due to the lack of supply while the aggregate demand is very large, it has led to a continuous increase in housing prices over the past 5 years. Currently, housing prices are more than 20 times higher than the average income of the society, making it difficult for many households and individuals to create housing. While in industrialized countries, the house price index is only 6-7 times higher than income.

Information from HoREA shows that the current real estate market is not only short of supply – demand, but also clearly shows the “phase difference” in housing prices in different segments.

HoREA cited that in the last 2 years, affordable housing only accounted for 1% in 2020 and “disappeared” in 2021 (0%). Meanwhile, high-end housing accounts for 74%, leading to the state budget revenue from land and real estate market not commensurate with the potential.

This is very clearly shown in the revenue from land use fees in Ho Chi Minh City in the period 2016-2021 which is 82,932 billion VND, accounting for only 5.9% of total budget revenue. less than 10% is suitable. All of the above signs of volatility are potential instability in the real estate market and instability in social security.

According to Mr. Le Hoang Chau, there are many reasons for the market to change and there are many problems today. HoREA believes that the cause of problems and inadequacies comes from some provisions of the Law or sub-law documents, or the lack of appropriate legal provisions (not yet promulgated).

In addition, over the past time, the market has shown some signs of volatility such as supply-demand imbalance, market segmentation mismatch, rampant subdivision of plots for sale, virtual fever of land prices, house prices, etc. taking advantage of the issuance of corporate bonds to defraud and manipulate the stock market…

Urgent proposal to “remove” obstacles for the market

Before the above shortcomings, HoREA President said that in order to reduce housing prices in the real estate market, there must be effective solutions to increase housing supply.

But in order to do this, we must first remove obstacles and inadequacies of a number of legal regulations to increase project supply.

Firstly, HoREA proposed to remove bottlenecks for commercial housing projects that “have the right to use land other than residential land in accordance with the master plan, land use plan, urban development planning, housing live”.

Secondly, the Association proposes solutions to remove obstacles for real estate and commercial housing projects subject to legal review, inspection, examination and investigation in the direction of requiring investors to implement perform financial obligations or additional financial obligations to the State under decisions of competent agencies.

In order to collect correctly, fully, or completely recover the value of State assets, state budget revenues are lost. After that, investors are allowed to continue implementing projects or issue certificates of land use rights and house ownership rights to customers.

Next, HoREA proposed a solution to solve problems in implementing regulations on separation criteria into independent projects for the “public land” area interspersed in commercial housing projects put up for auction. Land use helps to increase the supply of housing projects

Fourth, it is proposed to remove obstacles in the investment process and construction of commercial housing projects for which enterprises already have land use rights, helping to increase the supply of housing projects and products to the real estate market. produce.

Fifth, propose solutions to remove “entanglements” in calculating “land use fees” for commercial housing projects to help increase housing supply for the market. In addition, HoREA proposed a solution to promote the implementation of “auction of land use rights; bidding for projects with land use” to select investors to help increase the supply of commercial housing projects for the real estate market. movables.

In addition, in order for the real estate market to develop transparently, HoREA said that the Government must review to perfect the mechanisms and policies on capital market development. Including: money – credit market, stock market, corporate bond market, coupled with property tax policy development.

“It is necessary to change the current way of calculating land use levy by issuing a new tax on the act of changing the planned land use purpose from agricultural land to non-agricultural land, residential land. The purpose is not to There is a situation of “tax on top of tax”, contributing to regulating the real estate market”, Mr. Chau added.