The government will also launch a housing development initiative for low-income individuals, focusing on worker housing and housing for policy beneficiaries. Prime Minister Pham Minh Chinh said on February 17 at the National Online Conference that he will foster the long-term and sustainable growth of the real estate industry. Around $3.36 billion is now frozen since real estate developments have been stalled.

Prime Minister Pham Minh Chinh at the conference. Photo: VNA

Since the end of last year, the government and ministries have been focused on resolving real estate market problems, an issue that has been building up for a long time that has recently been uncovered due to external and internal challenges.

The prime minister said that it was vital to "be aware of the situation and have a solution". The remedy must be built on the idea of harmonising advantages, sharing risks, and working collectively on the state, the people's, and the economic community's interests.

The PM said that management policies "had not adjusted in a timely manner" to market trends and that there were still several legal issues and barriers to obtaining money, including loans, bonds, securities, and customer-mobilized cash.

According to the prime minister, there are still delays in the planning and modification of planned initiatives. In addition, he said that "real estate companies were not particularly adaptable and prompt in addressing their own difficulties."

Vietnam's real estate market has several major issues, according to the Vietnam National Real Estate Association (VNREA) and numerous businesses: the product line is out of phase; the high-end segment is widespread, while the segment for those on low-incomes is low, and policies are insufficient.

In Vietnam, real estate prices are not sensible. Vietnam's per capita income is barely $4,100 per year, while property prices in HCMC have increased to $2,309 per square meter, according to VNREA. This means it takes about year's salary to purchase just two sq.m of property.