G6 Group Chairman Proposes Comprehensive Solutions to Reduce Condominium Prices

Prime Minister Pham Minh Chinh, Head of the Central Steering Committee on Housing Policies and Real Estate Market, recently chaired a conference to announce the consolidation of the Steering Committee and its first meeting.

During the meeting, the Prime Minister emphasized that the real estate market and social housing development still face numerous challenges. The housing segment remains inadequate, primarily focusing on high-end products, with prices experiencing sudden surges, particularly in Hanoi and Ho Chi Minh City.

According to a report by the Ministry of Construction, apartment prices in these two major cities remain high, averaging between 70–80 million VND/m², a 5.6% increase compared to the beginning of the year. Meanwhile, social housing, which was expected to help reduce housing prices, has seen improvements in quantity but still lags behind its targets.

As of July, the number of new social housing units reached only 59.6% of the target set in the 1 million unit plan. While some localities like Hue and Hai Phong have performed well, many others are still struggling to meet requirements. Notably, the 145 trillion VND credit package for social housing development has only disbursed over 4 trillion VND after more than two years of implementation.

In response to this situation, the Prime Minister raised a critical question: “Are there any businesses not borrowing? Are there any businesses not taking bank loans to invest in real estate? Can banks control how much of this borrowed money is going into real estate or elsewhere? Why is the bank package not being disbursed? How many people need housing but cannot afford it due to high prices? With prices ranging from 70 to over 100 million VND/m², who can afford to buy?”

In response to the Prime Minister’s query, Mr. Nguyen Anh Que, Chairman of G6 Group and a member of the Vietnam Real Estate Association’s Executive Committee, proposed a series of short-term solutions for the 2025–2027 period to reduce housing and land prices.

Mr. Que suggested the urgent implementation of a reasonable land price table and the streamlining of legal procedures to increase supply. For land auctions targeting individuals, he recommended a mechanism restricting transfer for two years, requiring high deposits, proof of financial capability, and mandatory payment within seven days.

He also stressed the need to cap primary condominium profits at 50%, as current profits often exceed 200%. He cited a high-end condominium project on Le Van Luong Street (Hanoi) in 2022, which sold at 40 million VND/m² with costs around 25 million VND/m², but by 2025, prices had risen to 90 million VND/m² while costs were only about 35 million VND/m².

Additionally, he advocated for the accelerated development of social housing within and on the outskirts of major cities to create a supply that aligns with genuine public demand.

According to Mr. Que, if these solutions are implemented decisively, the real estate market could cool down and refocus on actual needs, rather than being driven by excessively high prices as seen today.