3 main capital flows are “clogged”, how do real estate businesses “breathe”?

This morning (May 27), the seminar “Removing obstacles and promoting investment in real estate” was organized by the Vietnam International Arbitration Center (VIAC) and the Ho Chi Minh City Investment and Trade Promotion Center. (ITPC) organization took place in Ho Chi Minh City.

Experts have raised the importance of the real estate market to the development of the economy. Therefore, obstacles and bottlenecks from legal to credit capital flow and bond capital need to be removed soon, creating force for real estate to go up according to the positive recovery momentum of the economy.

Dr. Tran Du Lich, Vice President of VIAC, said that the real estate market is very important for the economy. It has 3 connected markets, mutual circulation is buying, selling, renting and tax. The buying and selling market has been out of phase, with many high-end houses but no affordable houses; The rental market is struggling due to the pandemic and the collection of real estate taxes is difficult because there are no projects… The difference between luxury houses and affordable houses is now like airplane design firms that only sell seats. Business class while there is no economy class.

The real estate market plays an important role in the recovery and development of the economy

Importantly, the bottlenecks related to procedures and laws are blocking hundreds of projects, making the capital of enterprises put into the project “dead”. . According to Dr. Tran Du Lich, the state should only tighten credit on speculative real estate, support dismantling capital for affordable housing, real housing, otherwise the stagnation of real estate will negatively affect the economy. enormously to the rate of economic development.

Agreeing with this point of view, economic expert – Dr. Can Van Luc emphasized that real estate is related to at least 4 areas that make great contributions to GDP: construction, tourism, accommodation and banking and finance. . The contribution of these sectors amounts to 26% of GDP. Not to mention, real estate is a field involving 35 different industries; attracting FDI up to 10% in the first months of 2022. Real estate is a closely connected industry between banking – securities – insurance.

According to Mr. Luc, if real estate is affected, the consequences will follow. Our economy from a macro perspective is recovering very well after the pandemic. If we let factors related to capital flow affect real estate and securities, it’s really not worth it. Therefore, it is necessary to consider to develop green businesses, green bonds, sustainable real estate…

Chairman of Ho Chi Minh City Real Estate Association, Mr. Le Hoang Chau, said that the city’s real estate market is facing many difficulties, supply is limited, supply and demand are out of phase and hundreds of projects with legal problems have not been approved. remove. There are 3 main capital flows for real estate businesses, the 2 lines that are being “squeezed” are credit and bonds, the mobilization channel from customers is also “clogged”, how can real estate businesses “breathe”? The story of “junk” bonds affects the entire issuance of bonds to raise capital of enterprises. Therefore, at this point, it is necessary to correct, classify and give credit ratings to businesses so that they can untie the bonds for businesses to issue healthy bonds.

“The health of the real estate market reflects the current state and health of the economy. If the real estate is weak, the economy cannot be strong. How can real estate like a swallow signal spring, not a spring, not a strong one? The government needs to orient positive capital flows for the real estate market to develop healthily and sustainably, with transparency and fairness… not in fever and freezing times, “- Mr. Chau emphasized. strong.

Son Nhung