Unsold real estate inventory surges due to legal obstacles

The figure rose to VND223.5 trillion ($9.6 billion), with 30 companies holding an unsold inventory value of over VND1 trillion ($43 million) each, according to Ho Chi Minh City Real Estate Association (HoREA).

The inventory includes units facing legal obstacles and those suspended from trading, resulting in raised costs and possible bankruptcy, it stated.

Most real estate firms saw profit growth slow to 11 percent last year from 47 percent in 2018.

The government needs to address legal challenges so units could be available on the market, it was added.

Insiders repeatedly said last year conflicting provisions in various laws regulating the sector caused delays in housing project permits in Vietnam’s largest city.

Last year, the number of approved apartment projects fell 14 percent from 2018 to 47, according to HoREA.