Construction Minister Nguyen Thanh Nghi proposed to allocate enough land to develop social housing and housing for workers, because real estate prices are constantly increasing and higher than workers’ incomes.
Participating in answering questions before the National Assembly on the afternoon of June 8, Construction Minister Nguyen Thanh Nghi proposed to competent authorities to quickly formulate, appraise and approve urban and rural construction planning; planning, land use plans and building housing development programs, housing development plans in the localities. According to him, it is necessary to promote the renovation of old apartments; strictly control the issuance of real estate corporate bonds, especially individual bonds.
In addition, functional agencies must manage and prevent the division of plots, subdivision of plots for sale in contravention of regulations, incompatible with planning, without investment in infrastructure, and without investment permission. “It is necessary to complete and publicize the information system on housing and the real estate market…”, Mr. Nghi said.
According to the leader of the construction industry, the investment and construction of real estate projects in most localities faced many difficulties, causing the supply to decrease sharply in all segments. The number of new projects in the past time has not met the demand for commercial houses, social houses, houses for workers, houses for low- and middle-income people. In 2021, 172 commercial housing projects were completed, equaling 60% of 2020. In the first quarter of 2022, 22 commercial housing projects were completed.
According to the Minister of Construction, the supply of social housing and worker housing has only reached 7.3 million m2. In which, housing for workers is 2.7 million m2, equivalent to 54,000 apartments. Social housing for urban low-income people is 4.6 million m2 with 92,500 apartments. The whole country is implementing 339 social housing projects, but “the speed of implementation is very slow”; of which housing for workers is 7.6 million m2 with more than 152,000 apartments, social housing for urban low-income people is 10.96 million m2 with 219,000 apartments.
These projects are currently being implemented slowly and have only recently restarted after the credit support package under Resolution 11 of the Government.
While housing products in the middle and high-end segments and tourist real estate have shown signs of excess, social housing, houses for workers, and commercial houses are suitable for low- and middle-income people. is missing “very sharply”. “Real estate prices, especially housing and residential land, are constantly increasing and are higher than people’s incomes. This makes low-income workers in urban areas and industrial park workers more difficult. in accessing and creating accommodation”, Mr. Nghi said.
In addition, real estate exchanges “operate unstable, effectively colluding with each other, hoarding goods, blowing prices, causing virtual fever to disturb the market; real estate brokerage activities have not been controlled. There are shortcomings in the management of construction planning, land use planning and real estate market in localities.
At the question-and-answer session this afternoon, State Bank Governor Nguyen Thi Hong also received many questions related to monetary policy to ensure the healthy development of the real estate market. Delegate Do Thi Viet Ha said that there are many organizations and individuals that have a real need to get credit loans to buy and invest in housing for self-use and consumption, especially social housing and housing. for workers, affordable commercial housing. “What is the main solution for the Governor to create favorable conditions for the above subjects to access capital?”, asked Ms. Ha.
Governor Nguyen Thi Hong said that when lending, credit institutions may have assets secured by real estate. According to the data of the banking system, credit institutions have VND 2.2 million billion of real estate debt at the end of 2020, of which 65% is for the needs of buying a house to live in, buying a house to live in. home repair and serving purposes.
For low-income homebuyers, the Bank has a number of policies such as lending through the Bank for Social Policies. In the package of 2% interest rate support, there are also some people who need a loan. In addition, the Bank for Social Policies also has a number of lending programs, housing support, residential land support for the poor, policies as well as for ethnic minorities and mountainous people.
Delegate Le Thanh Van said that tightening credit for real estate could cause the market to stagnate, making it difficult for the poor, especially the urban poor, to buy cheaper houses as desired. Meanwhile, the State’s purpose is to fight speculation and real estate bubbles.
Governor Nguyen Thi Hong said that the real estate market consists of many subjects, attracting many different investment sources and credit is a channel to participate in real estate investment. In recent years, the State Bank has advocated that credit expansion must go hand in hand with safety and efficiency; focus capital on production and business and limit capital in potential risky areas.
The real estate sector has the risk of losing capital. In order to prevent credit risks, banks only lend money when customers are eligible, ensuring their ability to repay. The nature of real estate is a large asset with a long term while the deposits of the banking system are short-term. If the lending credit institution cannot control it, there is a time when customers come to withdraw money but cannot recover long-term debts.
“As for lending to the field of real estate investment and business, credit institutions agree with their customers and decide by themselves, on the basis of ensuring the safety of their own operations,” the Governor said.
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