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Cutting house prices to awake real estate market: meeting
06/08/2010 - 185 Lượt xem
Market experts and land survey offices agreed on the solution at the conference on real estate market in Vietnam held by the Research Institute of Market and Price and Research Institute of Land Administration.
Pham Si Liem, an official of Vietnam Construction Association, asserted that real profits from land trading were up 30-40 percent.
Construction price of one-sq.m floor was VND3-4 million but housing developers pushed the rates up to VND10-12 million.
A house or a land lot was traded through many hands, the major reason for price hikes, unaffordable to most in Vietnam.
According to deputy minister of national resources and environment Dang Hung Vo, real estate investors should take initiative in reducing prices to promote business.
Additionally Vo suggested banks should extend loans for enterprises to continue real estate operations of face bankruptcy in a business climate where capital is not circulating.
Enterprises must accept losses to enable purchasing power to help the real estate market recover, after increase prices after that.
Nguyen Duc Sinh of the Vietnam Property Association attributed the stagnant real estate situation to the price difference between agriculture land turned into urban property.
Sinh cited that one sq.m of cultivated land in the Hong Delta River region was worth of VND30,000.
But the land lot’s price was VND3 million per sq.m after the land was taken for developing urban areas.
Great land demand for 150,000 enterprises, 2.5 million private businesses and 800,000 workers in industrial zones has property businesses elevating prices for higher profit.
Source: Thanhnien.online
