HCMC – The HCMC Real Estate Association (HoREA) and businesses have proposed the Government and the Ministry of Construction take action to deal with difficulties faced by the city’s real estate projects.
According to the Ministry of Construction, many realty companies are narrowing their investments, while some have been forced to suspend or delay their projects.
The current situation has forced many realty enterprises to downsize by laying off employees.
Representatives of real estate companies such as Phu My Hung, Novaland, Nam Long, Hung Thinh and others shared the same opinion, adding that the realty sector is encountering extreme difficulties. They urged the Government to come up with coping solutions.
According to Le Hoang Chau, chairman of HoREA, real estate businesses lack capital as all funding sources such as bank loans, corporate bonds and share sales, and capital mobilized from customers are currently stuck.
HCMC has over 100 real estate projects with regulatory bottlenecks for a decade. For example, some projects could not be carried out due to site clearance problems, while others could not be developed because of a lack of land delivery procedures.
Besides many inactive projects, the real estate market has shown signs of exhaustion and low liquidity. Many representatives of the estate businesses in HCMC expressed their significant concerns over the current situation and asked the Government and related ministries and departments to remove regulatory bottlenecks to balance the supply and demand in real estate.