Deputy Minister of Construction, Nguyen Van Sinh, shared positive figures in a recent interview discussing the development of social housing and the real estate market in early 2025.
– One of the highlights of the construction industry in 2024 was the positive shift in the real estate market, overcoming its most challenging phase and gearing up for recovery and growth. What are your thoughts on the real estate market performance in 2024?
Deputy Minister Nguyen Van Sinh: The real estate market in 2024 showed positive signs of recovery. Several projects were resolved and bottlenecks were addressed to facilitate their continuation. There was a slight increase in housing supply, and numerous social housing projects were initiated.
Specifically, regarding commercial housing supply, the number of completed projects, newly licensed projects, and those eligible for future sales increased by approximately 8.6% compared to 2023.
The supply of social housing also increased by about 9% from the previous year, with a total of 48 projects. Of these, 28 projects were completed, providing over 20,200 units, while 20 projects were licensed and commenced, offering over 22,300 units.
 Deputy Minister of Construction, Nguyen Van Sinh. Photo: T.H |
In terms of transaction volume, the market recorded over 137,000 transactions for apartments and separate houses, and nearly 447,000 transactions for land plots, a 38% increase compared to 2023.
However, challenges remain in implementing real estate projects, including issues related to land compensation and clearance, land use conversion, land price determination and land use fees, planning adjustments, investment approvals, investment strategy adjustments, and progress delays, all of which impact housing supply and real estate prices.
– In recent years, the development of social housing has received special attention and is expected to accelerate. Could you share the plans and targets for the number of social housing units to be completed in 2025?
Thus far, 645 social housing projects have been deployed nationwide, offering over 581,000 units. Of these, 96 projects have been completed, 135 projects have been initiated, and 414 projects have received investment approval.
In 2024 alone, 28 projects providing over 20,000 units were completed, representing an increase of approximately 46% compared to 2023, or roughly 6,420 units.
Many provinces and cities have allocated land for social housing development. Nationwide, over 1,309 land areas totaling more than 9,700 hectares have been planned for this purpose, with significant contributions from localities such as Ho Chi Minh City, Hanoi, Dong Nai, Long An, and Hai Phong…
 Illustration: Hong Khanh |
Regarding the VND 120,000 billion credit package for preferential loans for social housing, worker housing, and apartment reconstruction, banks have committed to providing credit of over VND 4,000 billion, with a loan disbursement of VND 2,360 billion (over VND 2,100 billion for investors in 17 projects and VND 198 billion for home buyers in 15 projects).
However, the increase in social housing supply has not met expectations due to challenges and obstacles faced by local authorities and businesses regarding legal regulations in project implementation.
There is also a sense of hesitation and a wait-and-see attitude among some stakeholders, who are anticipating the enactment of new laws, such as the Land Law, Housing Law, and Real Estate Business Law, which are expected to provide more favorable conditions for implementation.
The disbursement of the VND 120,000 billion preferential credit package has been slower than desired and practical needs.
To achieve the goals for social housing development set by the Government and the Prime Minister, a high level of determination and effort is required from ministries, sectors, local authorities, and businesses.
Moving forward, the Ministry of Construction will conduct a comprehensive assessment and intensify its efforts to monitor and facilitate better and more practical outcomes. The Ministry will continue to urge localities to allocate more land for social housing, streamline administrative procedures, and promote the implementation of social housing projects, striving to meet the target of 100,000 units in 2025 as assigned by the Government and the Prime Minister.
– What are your thoughts on the prospects for the real estate market in 2025?
Despite lingering challenges and uncertainties, the real estate market in 2025 holds numerous opportunities to sustain its recovery and develop in a safe, healthy, and sustainable manner, supported by the following factors:
First, the legal framework for investment, construction, housing, and land has been improved in 2024 and will have time to prove its effectiveness and meet practical demands.
Second, capital sources for the market are gradually being unlocked. The Government and the Prime Minister have provided flexible guidance in monetary policy and directed the implementation of debt restructuring, debt rescheduling, and interest rate reduction to support businesses. They have also initiated a credit package of approximately VND 120,000 billion for investors and home buyers in social housing and worker housing projects, offering low-interest loans.
The real estate market in 2025 is expected to witness positive changes. Photo: Hoang Ha |
Third, social housing development has received significant attention and emphasis. The Government and the Prime Minister have been resolute in their guidance to ministries, sectors, and localities, and businesses have actively participated in implementing solutions to achieve the goals set by the “Project to Invest in Building at Least 1 Million Social Housing Units for Low-Income People and Workers in Industrial Zones for the 2021-2030 Period,” aiming to complete 100,000 units in 2025.
Fourth, efforts to address difficulties and obstacles in real estate projects are being vigorously pursued from the central to local levels. As of the end of 2024, 129 real estate projects with difficulties and obstacles have been resolved nationwide.
Fifth, not only the public sector but also real estate businesses have proactively restructured their investment resources, adjusted their product segments, and made reasonable price adjustments. They have focused on completing ongoing projects and initiating new ones.
It can be said that with the unified and consistent direction of the Government and the Prime Minister, along with the active participation of ministries, sectors, localities, businesses, and people, the real estate market in 2025 is expected to build on the positive momentum of 2024 and continue to develop in a safe, healthy, and sustainable manner.
– Thank you for your insights!
Hong Khanh
– 05:34 31/01/2025
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