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Property market difficulties set to linger

By Dat Nguyen   November 3, 2022 | 02:58 am PT
Property market difficulties set to linger
Buildings are seen in Ho Chi Minh City in April 2022. Photo by VnExpress/Quynh Tran
Challenges in the property market will likely persist as supply fails to match demand and credit policies remain tight, Minister of Construction Nguyen Thanh Nghi said Thursday.

Developers are facing difficulties in constructing new projects in many localities and therefore supply is falling, he told lawmakers at the ongoing National Assembly meeting.

"But property demand among workers and low-income people remains very high."

Controlling investment in the sector remains lax, with underlying risks, while there is no mid- and long-term capital for the sector, Nghi said.

Property speculation still occurs amid a lack of market transparency, he added.

These problems will likely continue to plague the market, but if a number of solutions are imposed in synchronization, the sector could start to improve and grow sustainably, he said.

Insiders earlier said the property market slump will likely continue next year.

The lack of funding is the main reason for the slowdown, he said, pointing out that increased government scrutiny of bond issuances following fraud worsened the problem, said Nguyen Quoc Anh, CEO of property listing platform Batdongsan.com said.

The apartment absorption rate in Ho Chi Minh City was 15% in the third quarter, the lowest since 2019, while unsold inventories rose to a four-year high of 66% of primary supply, according to property consultancy Savills.

 
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