HCM CITY – The property market in Việt Nam grew steadily this year, but continued to lack sufficient social housing amid a growing supply of buildings, a ministry official said.

Speaking at a conference in HCM City on December 11, Vũ Văn Phấn, deputy head of the Ministry of Construction’s Housing and Real Estate Market Management Agency, said the property market this year had a stable number of transactions, consistent prices and an increase in supply, which exceeded demand.

Dr. Trần Đình Thiên, a member of the Economic Advisory Group for the Prime Minister, said that Việt Nam’s economy was on the rise, with constant improvements to the business climate and a planned reduction in administrative procedures.

Stephen Wyatt, general director of Jones Lang Laselle Việt Nam, a real estate service firm, said the number of apartments sold within the first nine months of the year was more than 31,000, or 2.9 per cent higher against the same period last year.

It is expected that the supply of new apartments for 2018 will be 43,000 – 44,000, while the selling rate is predicted to be about 70 per cent for apartments and 90 per cent for villas.

However, property inventory remains large at VNĐ22.9 trillion, including real estate projects far from the city centre with underdeveloped infrastructure.

"While there is a surplus of high-end and mid-end housing, the market still lacks enough social and low-cost housing, which is in high demand," Phấn said, adding that policies to encourage investment in these property segments are needed.

In addition, disputes regarding management and land-use rights between investors, boards of management, and customers were ongoing issues, Phấn said.   

The market next year is expected to continue to grow steadily, but the prices of land lots in areas with infrastructure development could sharply increase.

Wyatt said that more policies were needed to discourage land speculation and to develop social housing. Cumbersome procedures for investors should also be streamlined.   

The conference was held by CafeLand, an online Vietnamese newspaper specialising in real estate. - VNS