Reducing Housing Prices: Strategies for Affordable Housing in Vietnam and Worldwide

The surge in housing prices is a hot topic these days. Experts in the real estate industry are discussing possible solutions to bring these prices down and make housing more affordable for everyone. Nguyen Duc Cay, Chairman of the Board of Constrexim Housing Development and Investment JSC, with his extensive 40 years of experience in the field, is concerned about the speculation that is driving up property prices. He highlights the delays in investment approvals by local authorities, leading to increased costs for investors.

On a national level, Hoang Quang Phong, Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), emphasizes that real estate plays a crucial role in economic growth and contributes significantly to the State budget. New laws, such as the Land Law 2024 and the Law on Real Estate Business 2023, aim to address existing challenges and promote transparency in the real estate market.

Nguyen Quoc Hiep, Chairman of GP.Invest and the Vietnam Construction Contractors Association, sheds light on the burden of complex administrative procedures businesses face when investing in projects. These procedures involve multiple departments and numerous stamps, leading to lengthy processing times. Simplifying these procedures could make the investment environment more attractive and expedite project launches.

To tackle these challenges, experts propose establishing model processes to streamline procedures and creating oversight bodies to monitor their implementation. This would not only reduce the burden on businesses but also increase the supply of real estate in different segments, ultimately lowering housing prices for the public.

Vuong Duy Dung, Deputy Director of the Housing and Real Estate Market Management Agency, points out that the increase in property prices is influenced by various factors, including rising land-related costs and changes in land pricing methods. Understanding these factors is crucial in developing effective strategies to address the issue.

In conclusion, experts agree that a concerted effort is needed to lower housing prices and ensure the sustainable development of the real estate market. By addressing administrative hurdles, increasing transparency, and monitoring market dynamics, stakeholders can work together to create a healthier real estate environment for everyone.