The Ministry of Construction (MIC) takes a hard look at real estate projects
20-02-2013
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| Government to tighten control over realty market |
The ministry made a report on situation included plans for 2012, in which they gave their assessment of the property market.
The report stated that the market showed some positive signs in social construction projects and urban area and resettlement development. On the other hand, it showed a general slowdown of transactions and a fall in prices since last year.
The MIC will tighten control over the realty market under Prime Minister's directives to improve the real estate management.
Functional agencies will be asked to build an information system and map out standardised criteria for this market. MIC will also inspect and classify projects that are under construction, projects that are on hold and projects that need changes to adapt to the market. Investors involved in housing development projects must set aside at least 20% of land for social housing.
In June 2012, MIC will send the Government proposed regulations on resettlement areas, amended resolutions on violations and religious buildings and the real estate information management system.
Low income housing will also be inspected. MIC said that 42 projects are under construction, with a total investment of VND4.5 trillion (USD216 million) and a land area of 907,000 square metres. These projects will eventually house 73,000 people and 1,714 apartments have been completed.
Within the year MIC said it aims to build 1.5 million square metres of social housing in urban areas, for 66,000 disadvantaged households in rural areas.
Vietnam currently has 755 urban areas and 628 new urban areas projects. There are 528 new small-scale projects of around 200 hectares, 80 projects of 200-1,000 hectares and 14 large-scale projects of 1,000 hectares or more.
