Vietnam Construction Minister addresses housing prices and market regulations

Vietnam's Minister of Construction, Trần Hồng Minh, addressed challenges regarding the real estate market and rising urban housing costs during a National Assembly discussion.

Regarding market liquidity, lawmakers suggested resolving bottlenecks in project transfers and resource circulation. However, they emphasized that efforts to stimulate the market must not weaken protections for buyers. Specifically, discussions focused on ensuring that financial obligations to the State do not become barriers that prevent the transfer of projects to more capable developers. There is also a push to close legal loopholes regarding how developers collect funds from customers before properties are eligible for sale, such as using terms like ‘priority registration’ or ‘goodwill deposits’ to bypass regulations.

Addressing housing affordability, Minister Minh noted that prices in major urban areas have risen excessively due to high costs in land use, infrastructure, capital, and compensation. He explained that while social housing is subject to state-regulated price frameworks due to subsidies, commercial housing operates on market principles of supply and demand, allowing developers to set their own prices based on their investment risks.