The Ministry of Construction has proposed short- and long-term measures to ease the difficulties facing the country’s real estate market, with social housing development to drive the market forward.

At its regular press conference in Hanoi on June 16, the ministry said the Government has provided an additional VND2 trillion (US$86.9 million) for four commercial banks to facilitate lending for social housing projects and buyers. 

It also suggested the Prime Minister cut lending rates on social housing to about 4% from the existing 4.8%. 

The ministry also proposed amending and supplementing several contents in the Government's Decree No 100/2015/ND-CP on social housing development, including those regarding financial obligations and State management, among others. 

It is necessary to allow developers to be granted extensions on paying land use fees and for borrowers to be permitted to make debt repayments later in the year. 

In the long term, State management agencies will continue fine-tuning the legal framework on real estate investment and step up administrative reform in the field of construction.