Real estate market shows more signs of recovery

The real estate market is showing signs of improvement and customer confidence in the market has been restored.

The remark was made by Deputy Minister of Construction Nguyen Tran Nam at a conference on implementing a VND50 trillion credit package on April 17.

The number of real estate transactions has increased significantly over the same period last year, which are mainly transactions of people in real need for houses but not speculation, Deputy Minister Nam said.

Since early this year, about 2,300 real estate transactions have been successfully carried out in Hanoi (the first quarter saw more than 1,500 transactions, or double the first quarter last year) and about 1,300 transactions have been conducted in Ho Chi Minh City, the official noted.

According to the deputy minister, the structure of housing supply has been initially adjusted to conform with market demand and the downward trend in real estate prices has stopped, with a slight increase in several housing projects in Hanoi and Ho Chi Minh City.

By the end of March, the total value of real estate inventory in the whole country decreased by 26%, which helps boost consumption and reduce inventory in related markets such as cement, brick and glass manufacturing.

Nguyen Viet Manh, Director of the State Bank's Credit Department said the real estate market is still facing difficulties, thus the credit package of VND50 trillion (US$2.35 billion) built via the four-sided integrated chain link: investor – contractor – building material manufacturer – bank, is expected to boost confidence among enterprises, banks, investors, suppliers and purchasers and stimulate the real estate market.

Source : nhandan/moc.gov.vn