On May 8, Mai Ai Truc, Minister of Natural Resources and Environment, talked with the press about recent turmoil in real estate. “This phenomenon took place locally in Hanoi and Ho Chi Minh, impacting only high-ranking apartments, good furnished buildings and villas. Based on scientific research, we forecast that this will no longer occur” he assessed.
Is increasing the supply considered a long term solution?
Actually, there is no lack of land supply. The National Assembly has ratified the Master land plan from 2006-2010, in which there are 436,000 ha used for building. As of 2005, there is 600,000 ha of building land in the whole country. Currently thousands of different land developing projects are in process. Also, I want to demonstrate that the recent turmoil has both a bad and good side, for instance, it created momentum for real estate development projects.
On the other hand, we believe turmoil will be limited by the 2003 Land law and a system of other related legal documents, helping the government control real estate more effectively than in the past. For example, Decree 181/2004 instructing Land law enforcement helps reduce land speculation, which causes the illusion of scarcity.
What kind of real estate development projects are encouraged?
They are large-scale projects. These include many strong points, for instance, creating all-new urban areas with bold, synchronized architecture, and providing a large quanitity and a variety of products. In my opinion, because of high market demand, all kinds of lease and lease-to-own properties should be developed.
They are large-scale projects. These include many strong points, for instance, creating all-new urban areas with bold, synchronized architecture, and providing a large quanitity and a variety of products. In my opinion, because of high market demand, all kinds of lease and lease-to-own properties should be developed.
Do you have any comment on a new investment wave created by many foreign investors who pay special attention to Vietnamese real estate?
There is increasing investment in this area from some investors in Taiwan (China), Indonesia, Korea, etc. and recently, some from Europe and America. It results from the achievements of previous investors in Vietnam, the increasing demand for houses, higher payment ability, and opening Government policies in this area.
There is increasing investment in this area from some investors in Taiwan (China), Indonesia, Korea, etc. and recently, some from Europe and America. It results from the achievements of previous investors in Vietnam, the increasing demand for houses, higher payment ability, and opening Government policies in this area.
A decree draft has been submitted to the Prime Minister and will soon be enforced, allowing foreign investors to obtain transferred house development projects from domestic units or companies. This will enable these projects to be accomplished more rapidly.
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