The domestic real estate market would continue to suffer difficulties in the short term and the market needed more policies to help it make a profit in the long term, said experts.

"The segment of luxury apartments will continue to endure many difficulties until the end of this year and even throughout next year because of oversupply," Nguyen Thanh Nam, director of the Ocean Group's Info Real Estate Trading Floor, said at an online dialogue between experts and readers held by Thoi bao Kinh te Viet Nam (VnEconomy) on Thursday.

"In fact, given what people's incomes realistically are, most cannot buy a commercial apartment or a large, high-quality house," said Vu Xuan Thien, head of Housing and Real Estate Market Management Department.

Therefore, the Government issued preferential policies to create favourable conditions for people to buy apartments and houses that are suitable to their income, Thien said.

Phan Thanh Mai, general secretary of the Viet Nam Real Estate Association, said the property market succumbed to weakness due to impacts from the global and regional economic downturn and uncontrollable fluctuations in supply and demand. Much depends on banking loans, weak risk management and the Government's credit tightening policies.

Development of the property market would depend on many factors, including state policies, Mai said. The Government, the Construction Ministry and the State Bank of Viet Nam had policies to support the market.

However, so far, those policies have not had much of an effect on the property market. They needed more time to see an effect, Mai said.

To solve difficulties in capital for the property market, the Government should have mid – and long-term financial tools for property investment, including saving funds that provide loans for buying houses or apartments and property investment funds that mobilise capital for the property market via the securities market.

Now, the price of apartments has fallen by 50 per cent in HCM City and 40 per cent in Ha Noi, Mai said. Investors have been forced to lower prices to cut losses and pay loans and accumulated interest.

Meanwhile, some enterprises with the financial ability to do so sought investment opportunities for the new market period after the downturn period. 

Source: VNAgency