Addressing the Housing Market Challenges

The government has acknowledged in a recent report that the property market has not reached its full potential due to ongoing issues and significant bottlenecks. Among these challenges are the lack of affordable housing options for young and low-income workers, alongside an oversupply of high-cost villas and properties.

Misalignment with Purchasing Power

Housing prices have been found to be out of sync with the purchasing power of those in genuine need, with speculation and market manipulation further complicating the situation in various regions.

Identifying Key Factors

Ministries and local authorities are now tasked with pinpointing the primary drivers behind the rising market costs, including land and construction material expenses, as well as loan interest rates.

Photo by VnExpress/Quynh Tran

Strategies for Improvement

Efforts are underway to develop plans aimed at reducing cost-inflating components, expanding supply, and enhancing housing accessibility. Additionally, there's a push to clamp down on entities exploiting land auctions to artificially inflate prices, which hinders housing development.

Real Estate Trading Platform

The government has also introduced an initiative to create a real estate trading platform, integrating all transaction processes electronically to mirror a stock exchange. This move is designed to increase transparency, reduce tax evasion, and improve oversight efficiency.

Reducing Administrative Burdens

A further goal is to cut the time and costs associated with completing administrative procedures for property projects by 30%, making the process more efficient for all parties involved.