Construction Minister Pham Hong Ha (standing) responds to lawmakers' questions on June 4 (Photo: VNA)

Hanoi (VNA) – Lawmakers voiced their concerns about the high real estate prices which is about 25 times of average income, and the uncontrolled rising property prices in some localities during a question-and-answer session at the National Assembly on June 4.

Construction Minister Pham Hong Ha said many limitations of the real estate market have their roots in the overlapping and even contradicting regulations in real estate-related laws. The product structure of the property market is unbalanced, with oversupply in some mid- and high-range segments while there is a shortage of social housing and affordable commercial housing.  

The minister also underlined the lack of financial resources for the property market. He said the market depends on bank credit and customers’ advance payment, while investors’ own capital accounts for about 15-30 percent of total investment.

He presented statistics that showed outstanding debts in the property sector stood at around 479 trillion VND as of the third quarter of 2018, or 8 percent of total outstanding credit, which was still at the safe level. However, the flow of credit concentrated on a number of big investors and high-risk segments.

Regarding solutions to those problems, Minister Ha emphasised the need to continue to complete institutions and synchronise laws from land planning, financial mechanisms, investment and construction to management.

He said efforts should focus on developing social housing and small- and medium-sized commercial housing, adding that his ministry will recommend ways to encourage firms to invest in social housing.

The Construction Minister was the second Government member to go before the NA in the question-and-answer (Q&A) session that began in the morning of June 4, following Minister of Public Security To Lam.

The Q&A session will last two days and a half as part of the ongoing 14th NA’s 7th session, and will be broadcast live nationwide.-VNA