Realty firms get anxious about rescue

It has been two months since Resolution 02 of the Government was introduced, but no specific rescue measures have been adopted to prop up the property market, keeping realty firms on tenterhooks.

Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA), said Resolution 02 had instilled confidence in investors and put forward many solutions to pull the property market out of the doldrums.

However, the resolution has yet to come into practice because there has been just a guidance circular of the Ministry of Finance while other ministries and big cities have not drawn up guiding documents.

“If not carried out soon, it will be impossible to quickly resolve the two major problems, bad debt and inventory,” Chau said. Prompt implementation of the resolution will help those in need of homes access loans, unfreezing the market, firstly in the low-end segment, he said at a meeting with representatives of property firms on Thursday,

On behalf of property companies, HoREA suggested the central bank soon activate a plan to lend VND20-40 trillion to homebuyers. Loans worth VND500-600 million each with an annual lending rate of 6% and a term of 20-30 years will be given to those buying their first homes, each of which is smaller than 70 square meters and priced below VND15 million per square meter.

In addition, HoREA sought permission from the Ministry of Construction to turn certain commercial housing projects into low-cost ones and resize apartments under faster and simpler procedures.

Marc Townsend, managing director of CB Richard Ellis Vietnam, said players in the real estate market should have a broad vision and adapt themselves to the market changes.

If confidence is still weak and lending rates remain high, homebuyers will not be ready to join the market, he said.

Savills Vietnam forecast the apartment market of HCMC would see around 100 projects completed from now to 2016, supplying some 54,300 units for the market, with 2,000 of them to be launched in the next two quarters. - Source: The Saigon Times Daily