Real estate market in Europe Construction is not booming everywhere

Status: 16.06.2021 2:01 p.m.

Construction is one of the boom industries in Germany even during the crisis. But what about in other European countries? Our correspondents report that the situation there is only partially comparable.

Poland: increasing demand, increasing prices

By Jan Pallokat, ARD studio Warsaw Anyone in Poland who thought that the corona pandemic would slow down the construction industry, which has been booming in the country for years, was caught on the wrong foot at the beginning of the year. Housing construction in particular is buzzing even more; In the first quarter, developers in major cities sold 40 percent more than in the previous year and three percent more than in the previous record year of 2017. And because the supply of modern living space still lags behind demand in the country, the sales prices achieved are also rising steadily: on average by almost eight percent for new buildings and six and a half percent for used residential property. The rising prices for building materials and an increasing shortage of staff also play a role here. Because construction workers are scarce, market experts are now warning that construction sites could be paralyzed in rows during the high season in summer. The downside of the building boom: home ownership is often unaffordable for young families. Already today, 43 percent of under 35-year-olds in Poland lived with their parents, the Eurostat statistics office recently reported. This puts Poland in the top group in the EU when it comes to “Hotel Mama” and is on a similar level to Italy.

Spain: no construction boom in sight

By Reinhard Spiegelhauer, ARD studio Madrid Construction boom and Spain – wasn’t there something? Yes, Spain has actually experienced an absolutely ludicrous construction boom – but that was 20 years ago. In the nineties and noughties, the number of planned apartments practically doubled from year to year – up to the highest level in 2006 with almost 900,000 apartments. Then came the big bang: the real estate bubble burst, banks had to be bailed out, Spain rushed past bankruptcy, hundreds of thousands could no longer service their real estate loans, apartments were evicted. The market then recovered very slowly. But still, roads, lamps and park benches built in boom times are rotting in many development areas. In 2019, the year before the corona pandemic, the foundation stones were laid for a good 100,000 apartments. Since then, however, the sector has largely been paralyzed again. Unemployment fell again after peaking at around 25 percent after the euro crisis, but it again reached 15 percent during the pandemic. For young adults it is more than 30 percent. According to experience from the times of the real estate bubble, far stricter criteria now apply to the granting of loans. All of this is currently preventing any kind of construction boom in Spain.

Switzerland: mainly redevelopment and densification

By Dietrich Karl Mäurer, ARD studio Zurich Instead of a “construction boom”, the umbrella association of the Swiss construction industry, Building Switzerland, speaks of “continuously good work”. A large part of the orders are so-called consolidations and energy-efficient building renovations. But not least because of the low interest rates, large investors like to invest in construction projects such as new building complexes with rental apartments. The demand is good, although there are vacancies in some rural regions. Housing is still in short supply in cities. This is also because net immigration has recently risen again; During the pandemic, many foreigners who actually wanted to leave the country after a certain period of time in Switzerland preferred to stay – mainly because of the comparatively difficult labor market conditions in their home countries. The construction industry accounts for ten percent of Switzerland’s economic output and employs around half a million skilled workers. According to a recent economic survey, the situation in the construction industry is stable. However, the limited availability of building materials and preliminary products could become a problem. Incidentally, real estate prices in Switzerland have risen faster than they have been in eight years.

The Weifang property market has fallen into a rather subtle and embarrassing state.

The Weifang property market continues to be in flames,

The hot ones are still hot,

No one cares about the unpopular ones.

What’s wrong with “destocking”?

On May 22, the second phase of Shangcheng Xifu opened for sales of 120 million yuan, and the next day announced a price increase of 200 yuan/㎡; on May 29, Dayou Shijia started selling 420 million yuan for the first time; Chengtou Aowen Mansion 16#, 18 #Dealization rate is as high as 87.6%. Among them, the unit price of Dayoushijia and Chengtou Aowen Mansion exceeds 11,000 yuan/㎡.

It is worth noting that behind the enthusiasm is the huge contrast between the general coolness of the Weifang property market.

In other words, the popularity of some properties is not representative. If you think that the Weifang property market is about to start a new wave of all-out madness, you are quite wrong.

In 2021, the Weifang property market will be two days of ice and fire, bid farewell to the general rise, and the differentiation will intensify.

The greatest value of real estate comes from the land. Any piece of land has its meaning, but different locations determine their fate and valuation.

In 2021, Weifang City’s available off-plan residential properties will be close to the big mark of 100,000 units. Although there are a lot of new listings entering the market every month, the rate of decentralization in the market is also accelerating.

According to data from the Zhongzhi Research Institute, from January to May 2021, the total sales amount of the TOP10 real estate companies in Weifang was 12.97 billion yuan, and the total sales area of ​​the TOP10 companies was 1.599 million square meters. Hengxin, a local brand real estate company, has performed outstandingly, with a sales performance of RMB 6.78 billion or 867,000 square meters, ranking first in both the sales amount and sales area rankings ； Shandong Gaochuang ranks first and second in the double list of sales amount and sales area with a sales performance of 1.17 billion yuan / 139,000 square meters ; Country Garden firmly ranks third in the sales value list with 930 million yuan / 124,000 square meters. The market share of branded real estate companies further increased.

From January to May of 2021, the sales value of the top four projects in Weifang’s commercial residential sales ranking list exceeded 500 million. Among them, CIFI Yinshengtai Boguan Tiancheng ranked first with sales of 570 million; the second was Vanke. City, the sales amount is 550 million; Sunshine Garden ranks third, the sales amount is 510 million.

From district counties, In May 2021, the high-tech zone will still be the main area, and the transaction area of ​​commercial residential buildings accounted for up to 32%, with a total of 182,700 square meters/1278 units; followed by Weicheng District, with a total of 96,900 square meters/750 units; again, Kuiwen District , A total of 81,100 square meters/603 sets were sold.

However, with the increase in the number of available houses in the market, buyers bid farewell to the hungry phase. When buying a house, the logic of self-occupation is beginning to overcome the logic of investment.

The current Weifang property market has gradually tended to a similar state: 20% of hot-selling properties and 80% of unsold projects; even 20% of the projects may take up 80% of the market’s sales volume.

It is not difficult for a discerning person to see that after the epidemic, they are still not afraid of the hot and cold real estate in the market. It probably has the following common characteristics: high-tech zone, complete supporting facilities, strong brand, and improved apartment layout.

Buyers in Weifang, start heading east!

Source: Weifang New Property Market

New Zealand has the most expensive housing market in the world. (Source: stuff.co.nz) According to Bloomberg Economics, real estate prices around the world is exploding strongly, from which the warning will form a real estate bubble unprecedented since the 2008 financial crisis. Based on the key indicators used in Bloomberg Economics’ calculations, New Zealand, Canada and Sweden are ranked as the top countries, respectively. Expensive housing market best of the world. Meanwhile, the UK and US are also near the top of the risk charts. Bloomberg Economics economist Niraj Shah says there are multiple factors contributing to the rise in home prices to unprecedented levels worldwide, including record low interest rates, massive fiscal stimulus packages, and massive bailouts. Backup savings can serve as a down payment, limited housing stock and expectations of a strong recovery in the global economy. Besides, the trend of working from home to avoid infection COVID-19 causing more people to need more living space and many governments giving tax incentives to homebuyers also increase the demand to buy houses. According to calculations by Bloomberg Economics, the ratio of price to rent and price to income will help assess the sustainability of housing price increases. Bloomberg Economics analyzes that even as risk indicators rise, with interest rates remaining low, lending standards generally higher than before, and macro-prudential policies in place, the cause led to the real estate market collapse is not clear. Mr. Shah said that in the coming period, it is likely that the real estate market will witness a cooling, not a collapse. As interest rates start to rise and other measures are put in place to protect financial stability, the property market will face an “important test,” Shah said.

The commander of the Metrology Center exchanged experiences in testing optical equipment with a team of officials and engineers. (Photo taken on April 21, 2021). After “realizing the market” in a number of departments and divisions of the CLC, we gradually envisioned the mission of the center. Formerly the Center for Calibration and Metrology, established on May 29, 1981, the TTL now has the function of advising and proposing on the implementation of metrological assurance; standard keeping, maintaining traceability, and transmitting metrological standards in the military. It is worth mentioning that metrology is a specific technical specialty, while the military does not have a formal training school for metrology officers and employees. In order to solve this difficulty, the officers and employees of the CLC are given all conditions to study and improve their qualifications, from participating in metrology engineering conversion courses to postgraduate study at technical schools in Vietnam. and outside the military. As a result, up to now, the staff of CLC has more than 90% of university and postgraduate degrees, the proportion of post-graduate accounts for 40%. In addition, over the past 40 years, the center has participated in 37 training courses for metrology engineers at the Military Technical Academy, creating a core force to deploy measurement work in units throughout the army.. . At the Optical Standardization Department, Colonel Pham Chi Trung, Head of the Department shared about the department’s tasks and quality of human resources: “The department’s mission is narrow, specialized, highly dual-use, equipped with equipment. It is modern and meets the development trend of the army. Therefore, according to the general policy of the center, the training and training of human resources is very focused. Currently, more than 70% of the staff of the department. have a master’s degree”. Thanks to high-quality human resources and in-depth investment with hundreds of new standard measurement devices, TTDL has gradually improved its standard capacity and capacity for testing and calibration, including the fields of These areas have been raised to national level, such as: Radio power measurement, pressure measurement, time frequency measurement, optical measurement… In the past 5 years, the center has ensured the connection benchmarking for nearly 50,000 measuring devices of units in the whole army, many of which are difficult and high-precision measuring devices of modern straight forward units; organized more than 250 mobile tests, ensuring standard linkages for more than 3,000 standard samples, high-precision measuring devices for units in the Northern region and some units in the Central and Southern regions. With the motto “Access to the latest technology, directly serving the task of keeping standards and transmitting standards”, over the years, TTG has implemented many scientific topics, tasks, and technical improvement initiatives (Science and Technical Innovation). ) contributes to improving the efficiency and quality of performing the task of ensuring and maintaining standard links for the whole army. In addition, the center has deployed dozens of technical and technical skills every year, effectively applied in the process of performing tasks, with many initiatives winning the National Innovative Youth Award. Referring to the big goals that the center strives to accomplish, Colonel, Dr. Le Duy Quy said: The Center determines to concentrate all resources to successfully implement two breakthroughs: improving the quality of internal training. meet the requirements in the new situation; promote the application of information technology in the task of keeping and transmitting standards, management and administration. In the immediate future, it is necessary to promote research and construction, and propose to equip automatic systems in testing and calibration of measuring instruments; research and apply advanced measurement methods, evaluation and testing methods to new-generation measuring-testing and technical equipment, and at the same time improving next-generation measuring-testing equipment. old, in order to effectively serve the assigned political tasks.

Speakers participating in the Russia-Vietnam Forum on Artificial Intelligence (AI) (photo source VOV.vn) “The information on the market today seems a lot, but the raw data is often very noisy with missing information. Too little data in unpopular areas and there are too many types of real estate” – said Mr. Tran Hoang Tung, representative of Meey Land (Meey Land Group Joint Stock Company). According to Mr. Tung, this leads to difficulties for both the seller and the buyer in finding a suitable real estate, thereby prolonging the real estate transaction time, especially for those who perform real estate transactions. transaction for the first time. “There is not enough information to give an appropriate selling price for the seller, or to have a reasonable financial plan for the buyer,” a representative of Meey Land shared. Currently, the selected solutions are: Find real estate experts, brokers, and search for information on the internet. However, these methods require a lot of time, skill and are difficult to verify information. According to the representative of Meey Land, these problems can be solved by applying Artificial Intelligence (AI) to the research and analysis of market data. “By analyzing data, we can solve two things. Firstly, find out the important factors affecting real estate prices: area of ​​use, value, location, contractor/investor, number of bedrooms… Second, group of properties properties with similar factors to determine the price range of real estate in a short time without human intervention “- Mr. Tung shared. Mr. Tran Hoang Tung – Director of AI Project is presenting on “Application of AI in real estate valuation” The application of Artificial Intelligence (AI) in the valuation of real estate assets is part of an overall problem of 26 products/utilities launched by Meey Land with the ambition of solving problems in the real estate market. real estate by applying technology in activities and transactions. “The systematization of data by Meey Land’s AI will help make the real estate market more transparent, shorten transaction times and increase liquidity,” said a representative of Meey Land. In addition to the sharing of the Vietnamese representative, Meey Land, the 1st Russia – Vietnam Forum on Artificial Intelligence (AI), there were many other important contents that attracted the attention of attendees. Events like this forum promise to strengthen cooperation between businesses and organizations of Vietnam and the Russian Federation in the field of information technology in general and artificial intelligence (AI) in particular.

CEO Nguyen Thanh Hang – United businessman “Sac with talent” in 2019 CEO Nguyen Thanh Hang is the founder of the real estate brand Dai Phuc Land with 20 years of experience in the real estate industry. Thoughtful about the real estate market together with her passion for business since she was 18, she has steered Dai Phuc Land boat more and more and develops sustainably. She is also known as the “Excellent and talented” businessman in 2019. Over the past time, her brand name but her reputation has been confirmed with more than 20 projects in important locations in Thu Duc city (Ho Chi Minh City). Currently, she is cherishing and turning her dream into reality in order to change her face to create a beautiful and romantic Villas on Doc Let beach – Ninh Hoa (Khanh Hoa province). ” Doc Let Beach has a beauty like very poetic angels – so beautiful that I could stop eating and sleeping just to come up with a detailed design idea for my baby “King Palace Villa” worthy of this place. “Ms. Hang said. CEO Nguyen Thanh Hang She said, this is my enthusiasm in the past time. Although there are times when I intend to let go of my hands when the difficulties piled up continuously, however, not giving up the difficulties and challenges, I am determined to implement and perfect the resort Villas near the sea, bearing style. European way – Even the smallest subtle lines. CEO Nguyen Thanh Hang – The beauty of the “Sac with a Talent” Entrepreneur in 2019 is a woman who is very dedicated to her spiritual children. “To implement this dream, I want to bring to the real estate market a 100% legal completed product to absolute safety. Only 60% of the total value – notarize the transfer. Buying and selling, and holding the name of the owner at the location of the land will build a Villa with many uses. The remaining 40% is divided into 5 payment installments, with the time each time is 3 months apart – number The payment per installment is only slightly more than 100 million VND, with the interest rate of 0 VND. Thus, is the best condition for those who want to own a resort here without being too concerned about finance “- Sister Nguyen Thanh Hang shared. Perspective of ground floor villa in King Palace Villa garden “The Villas are designed elaborately in every detail, cherishing each level of emotions, when customers take the first step to explore Doc Let beach, which is rated as one of the 10 most beautiful beaches in Vietnam. Man, then they could not help but remember the resort was built up from the morality and enthusiasm of the female general, day and night without concern, along with a team of young architects with full experience. an overall block of form. From a distance, “King palace villa” is shown splendidly but also very poetic. ” Ceo Nguyen Thanh Hang said. Perspective of living room King Palace Villa The reason why “King palace villa” is European style with closed space and the cost to build this model is very good and bad? She said that the majority of the resort real estate market is always following a modern style in open spaces. However, she wants to make a difference, a quiet but warm space for her family when she has the opportunity to travel together. Ms. Nguyen Thanh Hang confided that since childhood, after the family incident, the two sisters had to follow their parents to make real prayers in the guest land. When she is a little older and enters the loving age, she conceives that space will create emotions, which is indispensable to create a taste of life. According to her, the bedroom space needs to be refined in favor of softness, flexibility and romance. Therefore, she has devoted herself to building King Palace Villa into a small happy home for each family. For her, a warm and happy family together is an invaluable asset that cannot be exchanged. Perspective of King palace villa bedroom With the design concept of each villa from royal yellow to cool blue sky, priority is given to the background of the room space, accompanied by soft yellow light, light from chandeliers, with pictures The shape of candles is sparkling, the highlight is the wall panels decorated with wallpaper, wall paintings, European-style, the curtains are selected in tones matching the background color of the room. A special thing, the bedroom space enjoys the full green of the garden from the back, bringing cool and airy air. According to Ceo Nguyen Thanh Hang, the difference of “King palace villa” is that: “Each Villa is built on an area of ​​130m2 – 150m2 – Gardening on residential land 100%.” These are not only attractive, safe and effective investment solutions. It also brings lasting value to many generations. Especially, customers are committed to operate and manage by the investor, and at the same time, they are paid 50% of profit for the whole year from the exploitation of the purchased real estate. Perspective of King palace villa kitchen Located about 30km from Nha Trang, Ninh Hoa town is surrounded by mountains and sea. Specifically, the South of Ninh Hoa town borders Nha Trang city, the North borders the special economic zone of Bac Van Phong, the West borders Dak Lak province, the East stretches along the East Sea. Thanks to its special location, this place has a cool climate all year round, convenient traffic location, so it is very suitable for the development of marine tourism. In which, the highlight that makes up Ninh Hoa tourism is Doc Let beach, an attractive and attractive place for tourists. This place possesses beautiful scenery with ocean hills surrounding the coast. The coconut palms radiate shade, smooth white sand, flat, nearly 10 km long. Ninh Hoa promises to be a booming real estate market in Khanh Hoa Currently, the accommodation system serving tourists here is also developing strongly. Especially during holidays and summer, the luxury resort systems such as TTC Doc Let, Six Senses Ninh Van Bay, White Sand Doc Let Resort & Spa … are always in full room. Ninh Hoa also owns a special position in traffic as it is located on the main axis of many national highways and railways connecting the North – South and the Central Highlands provinces. Especially, Van Phong Bay international seaport. According to real estate experts, with such huge potential, Ninh Hoa promises to be a booming real estate market in Khanh Hoa. Currently, many businesses have poured into the development of real estate projects here.

Illustration

According to TS. Phan Huu Thang, Vice Chairman of Vietnam Real Estate Association, industrial real estate is a bright spot in the coming time. The number of 326 industrial parks, thousands of hectares of industrial land in our country has been attracting great attention to foreign businesses.

“In the coming time, real estate investors may pay attention to this market”, Mr. Phan Huu Thang emphasized.

Actual developments in the market and a survey by the Vietnam Real Estate Brokerage Association show that the current average occupancy rate in industrial zones is over 70%; Average factory rent across the country ranges from 60,000 to 80,000 VND / m2 and the price of land in industrial zones with infrastructure ranges from 3-5 million VND / m2 and may continue to increase in the near future.

In the first quarter of 2021, the industrial real estate market was very active in a number of localities with great potentials and strengths in industrial development, including Long An, Dong Nai, Binh Duong, Binh Dinh, Thanh Hoa, Quang Ninh, Hai Duong, Bac Giang …

Along with that, most of the provinces and cities capable of industrial development are very interested in proposing the development of new industrial zones, and at the same time have specific mechanisms and policies to attract investors, especially foreign enterprises investing in these industrial zones.

In the context that Vietnam successfully prevented the COVID-19 epidemic and positive results in economic development, experts in the real estate sector forecast that in 2021, the shift of production and installation of orders. goods from outside areas continue to shift to Vietnam will be a ‘push’ to increase the demand for industrial real estate in the country.

Accordingly, many new industrial zones will continue to participate in the Vietnamese industrial real estate market and there will be many new projects to develop infrastructure of industrial parks approved. Many logistics projects serving industrial zones will also be promoted.

However, real estate experts also warn localities to carefully calculate in the new industrial park project, to avoid falling into the risk of redundant crisis as happened to some localities. Phuong.

CEO Phu Dong Group: ‘It is not capital, land fund that is the biggest difficulty for investors’.

In the position of investor’s representative, Mr. Ngo Quang Phuc, General Director of Phu Dong Group, said that at present, the problem of capital is not a problem for investors, but the biggest difficulty is the land fund for implementation of real estate projects.

According to Mr. Phuc, over the past time, the land price has increased, the planning of suitable land funds to implement projects still has many shortcomings, so to harmonize this issue, the state needs to plan specifically for each area, specially acquired land to create large land funds then auctioned investor selection implementation

Mr. Phuc also emphasized on the inadequacies of legal procedures and the state. According to the General Director of Phu Dong Group, it is necessary to shorten the time to resolve the procedures, creating opportunities for investors to implement projects faster, thereby solving the problem of lack of housing supply. now on.

Reply to TS. Nguyen Anh Tuan, Editor-in-Chief of the Investor Magazine on the problem of private participation in transport infrastructure construction, Mr. Le Do Muoi, Director of the Institute of Transport Strategy and Development ( Ministry of Transport), affirmed that the resources for transport need to be very large, it is very difficult for each state to do it.

“Medium-term capital (2021-2025) for transportation is about 1.2 million billion VND. This is a very large number. The current legal corridor has the Law on Public Investment and the PPP Law, but unfortunately the PPP law has removed the BT form from the law, making it difficult for only forms such as BOT, PPP to call for resources. Asking the giants easily get a shake of the head when calling for PPP cooperation, ”he said.

The representative of the Ministry of Transport also affirmed that transport is a public need, not a private profit. Therefore, capital needs to be socialized with great demand.

“At present, the ring roads also call on investors to participate with many suitable solutions for the benefits of both the state-investors – the people. The Ministry of Transport will sit down with interested investors to dedicate resources to listen and find different, suitable forms for cooperation. The Ministry of Transport has an open policy mechanism to call for investors in projects with high feasibility, ”said Mr. Muoi.

Regarding the issue of calling for investment capital for transport infrastructure, continue with the presentation, PhD. Nguyen Anh Tuan said that investors have great expectations on the PPP Law, but the recently issued Decree of the Ministry of Finance is facing many “complaints” and says inequality. The problem mentioned by many opinions is the mobilization of foreign capital for transport infrastructure development, but so far no investors have participated.

Answer this question, GS-TSKH. Nguyen Mai said that if mobilizing FDI, the biggest risk will be encountered is delay, which is followed by capital mobilization.

Therefore, the most important thing of current management, according to Mr. Nguyen Mai, is overcoming delays from licensing, implementation, site clearance, cost effective calculation, … to Investor implemented on schedule.

“This is a long story. And to be enforced is a story forever. FDI has so far failed in BOT, PPP and even more failed to invest in transport infrastructure. For example, it is the case that investor IL&FS (India) has expressed interest in the Hanoi – Hai Phong expressway. Although the negotiation is almost completed, the problem of many problems has made the project unable to sell “, GS-TSKH. Nguyen Mai said.

“The first BOT Decree was born in 1993, 5 years later, the PPP Law was born, but in the end, it is nothing to do, because it cannot answer the legitimate interests of investors. If we do not have innovative thinking, we do not listen to irreverent criticism, we cannot correct fundamental mistakes. Currently, many foreign investors want to participate not only in road traffic, but also railways and airports. If we have a more reasonable law, more open and transparent, and ensure legitimate benefits, both domestic and foreign investors will want to contribute capital to implement projects with the state ”, Professor-TSKH. Nguyen Mai emphasized.

At times, many places across the country were flooded with information about sophisticated tricks to “hide the ball” of multi-level business. At that time, the wave of multi-level sales such as octopus spouts, crept into every corner in many rural areas, stirred the already very peaceful lives of the people here. Because of the desire to be rich, many people have spent money to multilevel and then fall into the trap of scams that the family goes bankrupt.

But the multi-level “tornado” is still nothing compared to the “fever” of virtual land.

Artwork: Ha Giang

These days, real estate prices in many provinces are increasing “rapidly”, creating a “fever” of land, especially in rural areas. Provinces and cities such as Hanoi, Thanh Hoa, Quang Ninh, Bac Ninh … land prices in suburban areas have doubled or even tripled in just a few months. In many places, people quit production and business to carry money to trade land.

The land fever not only occurs in the planned areas but also occurs in locations that are not under the planning such as: forest land, field land, garden … “Storks” appear everywhere in the area. These areas create false excitement, pushing prices up every hour to entice investors in. For example, outside of Hanoi, there are areas that increase the price from 5 million / m2 to 7 million / m2 in just one day….

In general across the country, the average land price increases 10% -15% after 1 month. With such attractive profits, many people quit their businesses, their production, and withdraw money from banks to invest in land.

Everywhere, everywhere, people talked about land prices. This story appears in the whole meal, the people’s sleep makes life turn upside down, work stops.

Prescribe root treatment

According to many opinions, the low interest rate of credit plus the idle money of the people makes a large capital pouring into real estate, creating a virtual “fever” in the suburban areas.

This is not the first time the appearance of “fever” of soil. So the question is where is the managerial responsibility of the authorities, especially the responsibility of the local government?

The local government – where the land “fever” occurs, cannot ignore this situation because it will make a big obstacle to calling for and attracting formal investment. In fact, the increase in land prices will lead to a series of other costs increasing, especially the cost of compensation for site clearance … Thus, it will affect economic development in localities with ” fever “soil. Consequences of the land price increase will also reduce investment resources for production development in many other sectors and fields of the country.

Therefore, the local government needs to promote propaganda and explain to the people the serious consequences of the land “fever”, which will certainly limit a lot of speculation.

Commenting on this issue, Professor Dang Hung Vo – former Deputy Minister of Natural Resources and Environment, said that the “fever” situation of land everywhere over time is partly due to the impact of the 2013 Land Law. regulations on sub-plots for sale are expanded.

According to him, countries around the world use the form of subdivision for sale only to settle urban housing, not in commerce because in principle, the real estate market must exploit the value of the investment. land, not waiting for land price increases to make a profit as a form of “eating away”.

Professor Dang Hung Vo pointed out, from 2016 to 2020, the Government has instructed four times to amend the Land Law, however, up to now the Land Law has not been revised. In particular, the land is clogged with old regulations. For example, current agricultural land has not yet implemented effective accumulation and concentration. Along with that is the land transfer in the countryside almost not according to the procedure but mainly by handwriting. Then the problem of housing development nowadays also has many bottlenecks … Especially the problem of foreigners buying underground land in Vietnam … It is these shortcomings that have a direct impact on the real estate market, making distorting and manipulating the market, creating opportunities for those who have the opportunity to make money.

Therefore, Professor Dang Hung Vo emphasized that the revision of the Land Law is extremely necessary.

Along with that, according to experts’ view, in the context that lending interest rates are pouring heavily on real estate, the State Bank needs to closely monitor and supervise lending activities to prevent loans to production and business, but actually poured into real estate.

Illustration.

As VnEconomy reportedAccording to the latest figures from the State Bank, in the first quarter of 2021, real estate credit has reached 1.85 million billion dong, up 3%. So this number has fully reflected and is the main reason why the real estate market is so hot today?

During the past 3 years, real estate investment credit has always been closely cared and controlled by the State Bank. Therefore, credit growth in this area tends to decrease. In 2020 alone, it will increase by only 11.89%, while the previous two years 2018 and 2019 will increase from 26-28%.

According to the operator’s representative, at the end of 2020 and the first quarter of 2021, real estate credit tends to inch up a bit. However, the growth rate is only equivalent to the overall credit growth of the whole country of 2.93%.

Credit for life has also reached nearly 1.87 million billion, up 1.2% compared to the beginning of the year. In particular, although it is difficult, it is also necessary to evaluate how much consumer credit is poured into real estate.

At the same time, compared to the same period in 2020 when the epidemic causes the real estate credit rate to increase by 1.84%, the above rate may be higher. But compared with the time of the first quarter of 2019 was 5.19% and the previous years, this rate is not higher, even much lower.

If you look at the above statistics, it can be seen that real estate credit is not the main cause of the current “land fever”.

However, when VnEconomy exchanged with an economist, he said that the above figure could not fully assess the credit flow flowing into real estate. Because, credit for life has also reached nearly 1.87 million billion, or 1.2% increase compared to the beginning of the year. In particular, although it is difficult, it is necessary to evaluate how much consumer credit is poured into real estate.

“When surveying a few projects that are selling land plots in the outskirts of Hanoi, I find that the buyers are mainly speculators, they not only buy 1 or 2 plots, but buy the whole range. In addition to existing out-of-pocket money, capital from the bank is indispensable. It is worth mentioning that they are allowed to borrow capital in the form of consumption, but with the amount of up to tens of billion dong, ”said the expert.

Besides, he also said that the real estate market is welcoming many new “players”. They are inherently participating in other industries, but due to the Covid-19 translation, their production and business have stalled. While real estate profit margin skyrocketed, so decided to change direction. In fact, just go online to search for the phrase “encroach on real estate” to be able to identify these new “players”.

“The capital accumulated for many years has been converted to real estate, while the capital for business operations is borrowed from the bank. Thus, this credit flow will be listed on production and business activities, not on real estate. The statistic is just the tip of the iceberg, ”said the expert.

The State Bank is asking credit institutions to inspect and strengthen supervision of regulations on real estate lending conditions, to ensure compliance with regulations, while being able to manage cash flow when loan.

That is an expert opinion, but on the part of the State Bank, Deputy Governor Dao Minh Tu said there are many reasons for the real estate market to overheat in recent years, such as rumors about planning information, the supply is limited while the demand is great, the land price list increases …

In addition, Mr. Tu also noted that real estate loans have two subjects, one is lending to the low-cost housing market segments, social houses or real estate with the nature of consumption. it is still guaranteed to serve the people well.

Second, real estate projects and high-end segments such as villas, resorts … with poor liquidity in the future will be revalued and strictly controlled.

“Real estate credit status higher than overall credit growth only appears in a few credit institutions and mainly focuses on the first object,” said the Deputy Governor.

Over the past years, the State Bank has consistently maintained its management target and has taken many measures to control credit in potentially risky areas, including real estate. For example, the system is implementing a regulation on short-term deposits for medium and long-term loans at 40% and that these loans must apply a risk factor of about 200%.

At the same time, the Deputy Governor also said that the State Bank is asking credit institutions to inspect and strengthen supervision of regulations on real estate lending conditions, to ensure compliance with regulations, in parallel. with that is managing cash flow when lending.

“The most important goal of 2021 when setting a credit growth target of 12% is to focus on the priority and necessary areas. Focusing on key works and projects of the State, as well as prioritizing certain economic sectors, such as exports to support economic growth rates according to the goals set by the National Assembly. Therefore, real estate credit will be tightly controlled and cannot increase hotly ”, Mr. Tu emphasized.