Real estate is growing too fast, Vietnamese house prices are 20 times higher than income
The Ho Chi Minh City Real Estate Association (HoREA) has just sent a report to the Prime Minister proposing some urgent solutions to solve the shortage of housing supply and reduce house prices to stabilize the real estate market. products in the direction of transparent, healthy, stable and sustainable development.
According to HoREA, the real estate market is experiencing a shortage of housing supply, especially affordable commercial housing (affordable housing) and social housing. These are two types of housing 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, according to the law of supply and demand, housing prices have increased continuously for more than 5 years. This is reflected in the housing price index of our country which is more than 20 times higher than the average income of the society, making it difficult for many households and individuals to create houses. While compared with industrialized countries, the house price index is only 6-7 times higher than income.
The market situation of both supply-demand imbalance and “out-of-phase” imbalance in the high-end housing segment has been evident in the last 2 years, when affordable housing only accounted for 1%. in new housing supply in 2020 and disappear in 2021, while luxury housing accounts for 74%.
“This leads to the state budget revenue from land and the real estate market not commensurate with the potential, which is clearly shown in the revenue from land use levy in Ho Chi Minh City in the 2016-2021 period of 82,932 billion, accounting for only 5.9% of the total budget revenue, but in terms of potential, this revenue can reach 10% or less, “said HoREA.
Talking about the causes leading to the above “inadequacy”, HoREA said that stemming from obstacles in legal regulations, limitations in law enforcement, the lack of serious law enforcement, even some cases of violations of the law by a number of businesses and “informal” forces (traders, storks, etc.) in the market.
Le Hoang Chau, Chairman of HoREA, said the association has proposed a series of urgent solutions to increase the supply of commercial and social housing to reduce house prices and stabilize the real estate market. .
In particular, HoREA proposes to remove obstacles for real estate and commercial housing projects subject to legal review, inspection, inspection and investigation in the direction of requiring investors to fulfill financial obligations. or additional financial obligations to the House. Then allow the investor to continue implementing the project, or grant a certificate of land use right and house ownership to the customer:
The association also proposed that the Ministry of Natural Resources and Environment submit to the Government to direct localities to urgently issue regulations on criteria for separating into independent projects for the area of ”public land” interspersed in housing projects to auction of land use rights.
For the area of ”public land” interspersed in a housing project but not eligible for separation into an independent project, land shall be allocated or leased to the investor to contribute to increasing the project’s supply and production. housing products for the real estate market.
The association also proposed assigning the Ministry of Planning and Investment to assume the prime responsibility for, and coordinate with the Ministry of Construction, the Ministry of Natural Resources and Environment, the Ministry of Finance and the Ministry of Justice in formulating investment procedures for building commercial housing projects. standards” for localities across the country to uniformly implement, contributing to increasing the supply of projects and commercial housing products to the market.
In addition, HoREA also proposes a solution that allows investors of commercial housing projects to exchange social housing equivalent to 20% of the land fund of a commercial housing project to ensure the supply of social housing and suitable for the actual situation.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
