Rules, land fund needed for Ha Noi market, forum told
HA NOI — Viet Nam National Real Estate Association general secretary Nguyen Van Minh wants the State to quickly complete a masterplan that includes regulations and a land fund to ensure the orderly development of the Ha Noi property market. The city's administrators should create a land pool as well as comprehensive infrastructure based on the plan to ensure investment in and regulation of the real estate market," he told a forum in Ha Noi yesterday. They should also complete policies and renovate the procedures that govern the industry so as to create a favourable environment for investors, sellers and buyers, he said.
The master plan would contain accurate information that would help people, customers and investors avoid cheats.
Complex
"Development of the Ha Noi real-estate market had become complex," the Construction Ministry's Real Estate Market Management Department deputy director Vu Xuan Thien told the forum to discuss the development of the city's property market.
The market started to fall during the second half of 2008 and then frozen until the first quarter of 2009, he said.
It started to recover in the second quarter of 2009 with a 15-20 per cent rise in land and house prices during the third quarter.
Prices then jumped 30-40 per cent during the first quarter and early in the second quarter in this year.
"The supply of houses, apartments, trade services buildings, office buildings and hotels in Ha Noi did not meet demand and this had led to prices rises." Although Ha Noi had many prospective real estate projects some were awaiting the State plan for real estate development.
Tardy site clearance and a lack of capital had slowed others.
Decree
Decree 71/2010/ND-CP issued last month would eliminate many obstacles to the market and supply was expected to match demand in the next two-three years so that prices reflected true value, he said.
The future Ha Noi would include the city centre; five satellite cities and three ecological cities, Construction Ministry's Institute of Architecture and Planning for Urban and Rural Areas director Ngo Trung Hai told the forum.
It would spread further north and south and this would restrict the present "hot" development in the west, he said.
The expansion would provide the foundation for the city's urbanisation and the location for it real estate projects. — VNS