An unfinished urban residential complex in the central city of Đà Nẵng. — VNA/VNS Photo

HÀ NỘI — Despite positive signs in recent months, the domestic property market is still facing numerous difficulties and challenges, heard participants at a recent conference organised by the Vietnam National Real Estate Association (VNREA) in Hà Nội.

Policies and directives from the central government have been effective in identifying and addressing a number of issues experienced by the market and helping with the recovery process. Hundreds of unfinished projects and those stuck in legal quagmire have been resolved, according to the association's executive members.

The association stressed the importance of central government, local authorities and property developers working together, especially in issues related to amending laws, mechanisms, policies, corporate bonds, credit, procedures and processes for implementing residential and urban projects.

In a recent report by the VNREA, there have been upticks in supply and demand, the return and recovery of many businesses and projects across the country, and an increase in property transactions in recent weeks. 

Đỗ Việt Chiến, a deputy chairman of VNREA, however, said the market has a long way to go before a full recovery. Major issues faced by developers include a decrease in customer trust, imbalance among market segments, restricted cash flow and a lack of sufficient methods to raise capital. 

Economist Trần Đình Thiên, former director of the Vietnam Institute of Economics, said the market remains vulnerable and unstable due to negative impacts brought on by the COVID-19 pandemic, as well as recent scandals within the industry. 

"We must quickly identify issues faced by the market and figure out solutions to boost the market's recovery," Thiên said.

Chairman of VNREA Nguyễn Văn Khôi said that regarding the country's social housing development programme, unfinished projects and the renovation of old condominiums, developers found current laws and regulations a challenge due to a lack of clearly defined legal guidelines for businesses to follow. In addition, he said some administrative procedure processes were time-consuming and complicated. 

To make matters worse, securing capital has become increasingly difficult for developers, especially for social housing projects, and concerns have been voiced over high-interest rates for investors and customers. 

Discussing solutions to overcome the current situation, VNREA leaders stated that, in the coming time, the association will continue to enhance consultancy, appraisal and social criticism activities in the real estate market, focusing on real issues that the law has not regulated to eliminate obstacles and difficulties hindering economic and social activities. They will concentrate on giving opinions on the drafts of regulations related to the real estate market, as well as decrees under the management of the Ministry of Construction and the Ministry of Natural Resources and Environment that are being implemented.

The association said it has been proactively enhancing its consultancy and appraisal capacity to help businesses identify and resolve difficulties. The VNREA has also constantly exchanged with the Ministry of Construction and Natural Resources and Environment regarding property-related draft laws and decrees.