The minister of Construction discussed the real estate market and proposed certain measures to deal with its outstanding problems.
Trinh Dinh Dung, the minister of Construction, told in an online forum that the real estate market has reached the bottom.
“In Hanoi, the property market has been in a slump since 2011, and since 2009 in HCM City. Though the market shows signs of a slow recovery, there are still many difficulties to overcome this year,” Dung said.
Despite the slump, prices are out of the reach of many people. The government is making plans to support low-income people but it may take 10 to 20 years to see the results.
To hasten progress, the government will use public budget for to construct apartment complexes and take steps create conditions to encourage investors to build affordable housing.
Another way to support low-income people in city is to build 25 square metre houses, he said. “I will support to put this into National Housing Development Strategy. There are many families in need of decent and affordable housing,” Dung said.
However, concern remains about the unsightly appearance of many small complexes. Dung said that this is a result of poor planning. “Each building may have a permit, but in general the law has not been followed. It is the responsibility of the authorities to take into account urban planning when issuing permits,” he added.