Real estate inventories remain high: Ministry of Construction
More than 17,100 apartments and land plots of real estate projects across the country remain on the market in the second quarter of this year, with land plots and houses doubling that of apartments, the Ministry of Construction (MoC) reported on August 14.
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| Real estate inventories remain high. Illustrative image (Source: baolaodong.vn) |
,Accordingly the inventory of land plots and houses was 7,061 and 7,045, respectively, while that of apartments was nearly 3,000.
Despite a decrease in inventory compared to the first quarter when 19,323 land plots and houses are on the market, the inventory of these segments remains high, a heavy burden on real estate businesses.
Experts held that the inventory of unfinished real estate, which is the current main type of inventory, is constantly increasing and causing difficulties for businesses. In fact, this prolonged situation is weakening the financial "health" of many real estate businesses.
Dr. Nguyen Van Dinh, Vice Chairman of the Vietnam National Real Estate Association, said completed products such as apartments, villas, and offices saw few transactions due to high prices. There are also cases where sale conditions were not met, or poor project locations slowed sales, he explained.
High inventories, low liquidity and the heavy burden of bank interest rates are making it harder for real estate businesses.
Dinh advised businesses to consider adjusting the development of projects with careful exploration of real needs, focusing on products with average prices and affordable prices.
Otherwise, real estate inventories cannot balance out, as the demand for luxury products is low, he added.
However, many businesses are expecting that newly-adopted laws such as the Land Law, Law on Real Estate Business and Housing Law, which took effect on August 1, will remove some difficulties, enabling faster progress in stagnant projects.
(Source: VNA)
