Real estate market in hardest time, measures proposed

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Noticeably, the freeze of the real estate market has domino effect on various fields, especially construction, materials, cement and steel, he stressed.

Minister Dung attributed the current difficulties to unprompted development of urban construction projects and economic downturn, leading to the imbalance between supply and demand.

Prior to April 2011, citizens widely discussed and rushed to invest in real estate, consequently, too many speculators swayed the market, he added.

These speculators pushed the prices high but real estate products only circulated within this group instead of end-users.

Moreover, the gloom was also caused by investors who only looked to wealthy groups, thus most of the products were opulent and commodious while the supply of cheap products were not available.

Besides, real estate enterprises were too dependent on bank loans and when banks tightened credit, many of them got serious illness.

To support the real estate market, the Ministry of Construction proposed four measures in a bid to rescue real estate enterprises which are on the verge of bankruptcy.

The measures include the improvement of legal system toward enhanced management over construction and real estate to ensure planning observation and balance supply and demand, projects review, financial mechanisms development./.

By Huong Giang