Property market faces liquidity, other severe problems: HoREA

 

The property market is “struggling and risks falling into a slump,” Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, has warned.

Speaking at a meeting on November 8 that Deputy Prime Minister Le Minh Khai and the Ministry of Construction held with property companies and HoREA to help mitigate problems facing the market, Chau said to stay afloat, some had to delay development projects and even initial public offerings, which could hamper economic recovery.

Many companies are struggling to access bank credit, issue bonds and mobilise funds from customers, and are even resorting to selling their assets or products at large discounts or seeking risky loans at high interest rates, he said, adding that some have cut their payroll by up to 50%.

"There is an oversupply of premium housing and a lack of affordable commercial and social housing, so more policies to increase the supply of the latter are urgently needed," he said.

His association called for enabling developers and buyers of affordable housing to access credit more easily, especially trustworthy businesses among the former.

It also called on the Government and the National Assembly Standing Committee to consider subsidising loans given by the four Government-owned banks, BIDV, Vietcombank, Vietinbank, and Agribank, to buy or rent social housing.

It urged the Government and the State Bank of Vietnam to increase banks’ credit quota by 2%, thus increasing the amount of credit available by 200 trillion VND (8 billion USD), to bolster the economy during the end of the year.

Chau also called for amendments to the 2013 Law on Land and related laws to foster the market./.