Mr Le Huu Nghia, director of Le Thanh Construction Trading Company Limited, said social housing companies still hope to make an average profit of around 7% per year. However, if the legal process drags on, costs will increase, leading to an increase in property prices.
Concretely, if the implementation of the project takes 5 years, the resulting profit level must increase by 35%. Therefore, when legal procedures are quick and last only 2 years, the profit level reaches about 14% and business costs decrease, real estate prices fall.
The 2025 real estate seminar on the theme “On the road to a decade of growth” was held on December 18 in Ho Chi Minh City. (Photo: Daï Viet)
According to Mr Nghia, if legal processes are streamlined and unnecessary procedures minimized, businesses will waste far less resources. Thanks to this, real estate prices “cooled”, the supply increased, relieving the current “thirst” for housing.
Sharing the same opinion as Mr. Nghia, Mr. Pham Dang Ho, Head of Housing Development and Real Estate Market (Ho Chi Minh City Construction Department), said that legal procedures are a major obstacle in the market. real estate.
Recently, Ho Chi Minh City has implemented new regulations to try to resolve business difficulties. However, the legal realization of the projects still takes a long time. This also causes many investors to complain and become discouraged.
According to Mr. Ho, the real estate market in Ho Chi Minh City has recovered but the pace of recovery is still slow. To eliminate investors’ troubles, Ho Chi Minh City Construction Department offers a solution integrating major investment procedures, avoiding multiple assessments and overlaps between departments and branches. Typically, the policy approval and 1/500 approval steps are integrated.
“The Ministry of Construction is establishing an interdisciplinary working group to conduct a centralized assessment to accelerate the progress of the project. In the immediate future, the Department will focus on resolving issues in the social housing segment, followed by the commercial housing segment. Over time, Ho Chi Minh City has approved policies for 17 real estate projects. Including 1 social housing project from the Le Thanh company”, » a dit M. Ho.
Still according to Mr. Ho, in 2025, the housing supply in Ho Chi Minh City cannot improve immediately because it takes time between the approval of the investment and the moment when the project is eligible for the sale. Additionally, the project approval process still has to go through many laws, resulting in a lengthy process.
DAI VIET
