Illustrative image. (Photo: VNA)

Timely control of the real estate market is one of the recognised successes in the State management of the Ministry of Construction.

The Ministry of Construction has comprehensively assessed the market to point out the shortcomings and propose solutions to ensure the real estate market's safe, healthy and sustainable development.

The Minister of Construction Nguyen Thanh Nghi has worked immediately with several localities such as Hanoi, Ho Chi Minh City, Da Nang, Can Tho, Hai Phong and real estate businesses to review, urge and guide to remove difficulties and obstacles in project implementation.

Along with regularly monitoring market developments, the Ministry of Construction proactively informs, forecasts and promptly takes measures to respond to abnormal market fluctuations, and promptly handles "hot" issues.

Typically, it has reported to the Prime Minister and the Standing Committee of the National Assembly's Economic Committee on the impact of the unusually-high land use right auction winning results on the real estate market; proposed several solutions related to the amendment of policies and laws on auction and strengthen the management, inspection and handling of violations in the auction of land use rights in the localities.

In addition, the Ministry coordinated with the State Bank of Vietnam to assess the situation and evolution of capital flows into the real estate market and propose appropriate solutions.

The real estate market has shown signs of recovery and development, with the total number of transactions of apartments, individual houses and land plots higher than last year.

The product absorption rate in most segments is high, and the rate of office vacancy and commercial space for rent gradually decreased.

The market has re-balanced between investment and business activities, and buying and selling for use. However, the market still faces a supply shortage in all product segments, an inappropriate structure of goods, a severe lack of affordable social and commercial housing, and high transaction prices.

Real estate supply is limited in all segments. Transaction prices in many segments remained at a high level at the end of the second quarter of this year, affecting the liquidity and trading volume of the market, especially the secondary market.

To "take the reins" of the real estate market, Minister Nghi requested to review and reduce procedures in the direction of reform to "open up" investment activities but still ensure compliance with legal regulations.

The Minister asked to continue to study and develop mechanisms, policies and solutions to encourage and attract foreign investment into the real estate market in the coming time, overcome the supply-demand mismatch of real estate products, focus on promoting the development of real estate products to meet the significant needs of the society such as social housing, commercial housing at reasonable prices.

At the same time, he also noted to complete and regularly maintain information systems and databases on the housing and real estate market; regularly follows the real estate market situation to adjust and promptly remove difficulties caused by limitations and inadequacies of mechanisms, policies, laws; natural disasters; impacts of the COVID-19 pandemic on real estate market; to ensure the stable and healthy development of the market.

These "supports" were the leverage to help the construction industry complete the year's tasks and proactively identify the new year's challenges to maintain a sustainable growth rate, said Nghi.