According to Dr. Thien, the real estate market has recently shown signs of demand, but it is not entirely positive.
“I and other experts still believe that the real estate market has never been as difficult as it is now. More businesses are leaving the market than new businesses are being established,” Dr. Tran Dinh Thien emphasized.
This expert shared that we must take a critical look at the problems in the real estate sector. It is true that the market is improving, but this does not tell the whole story. The figures show that this quarter is better than the previous quarter, but the underlying problems have not yet been “dissected”.
According to Dr. Thien, since Covid-19, real estate and construction businesses have faced more difficulties than businesses in other sectors. Recently, newly built apartments have not been able to be sold. Even though prices have remained high, adjustments have not been possible. In the midst of the current difficulties, many real estate transactions are not necessarily genuine.
Associate Professor Dr. Tran Dinh Thien
There are still many concerns about real estate. Dr. Thien believes that when we talk about the real estate market picking up, we need to be specific: What has improved, where are the difficulties? Why are there difficulties, and what are the prospects for overcoming them? …
“For example, we often talk about the Government taking decisive action to ease difficulties in the real estate market, but we have not yet assessed whether these actions have been truly effective. If the Government takes action but the market remains difficult, how should that decisiveness be evaluated? Is more time needed? What else is needed? …
If we just sit and wait for decisive action without evaluating the positive and negative aspects of the policy and what needs to be added, then the difficulties will persist. Even in the case of social housing, there has been no progress despite the policies. The spirit is there, but if social housing is built that the poor cannot afford and businesses are not interested in building, then the impact of the decisiveness is negligible,” Dr. Thien emphasized.
This expert stressed that we should not be afraid to tell the truth about real estate. We must acknowledge the problems that still exist and find effective solutions. Real estate is closely linked to the economy, so solutions must be specific, immediate, and address the problems accurately.
Instead of simply counting the number of businesses that are allowed to build and sell projects, we need to look at the issue of how many businesses are still operating? How are they surviving? Businesses are the barometer of the economy. In a period when more real estate businesses are leaving than are being established, it shows that the real estate market is still difficult.
In addition, according to Dr. Thien, the recent improvement in the real estate market has been largely due to the foreign sector, foreign businesses. The domestic market, Vietnamese businesses, are showing signs of weakness. The departure of real estate businesses affects the incomes of many people and families. Reduced incomes and low domestic demand will create economic problems in the long run.
