Nearly 4,015 housing and urban development projects have been planned and licensed throughout the country with the combined capital of VND4.486 trillion ($211.6 million), noted a Ministry of Construction (MoC) report to the National Assembly.
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However, the report showed that only 3,258 projects (81 per cent) are actually moving forward, meaning 19 per cent are lying in stasis. The report also showed that 455 projects need to be adjusted to meet market demand, of which 285 are in Hanoi.
Reports from 47 localities throughout the country showed that 287 projects are facing the chopping block.
According to Minister of Construction Trinh Dinh Dung, measures to solve property market difficulties and the implementation of the national strategy on housing development in the spirit of governmental Resolution 02, which seeks to remove difficulties in production and business, have shown encouraging results.
The VND30 trillion ($1.4 billion) property incentive package, aimed at increasing home ownership among low-income earners, has received great public support.
Therefore the property market showed signals of a rebound from late last year that have continued into this year.
The MoC has allowed developers to convert commercial housing projects into social housing projects to prevent supply-demand imbalance and facilitate project execution.
“The MoC’s primary goal at this time is restructuring construction businesses and the building industry as well. We expect the National Assembly to soon approve the draft amended Law on Real Estate Business and the amended Law on Housing to keep the domestic property market stable,” Dung said.
