Apartment buildings in a corner of Hanoi. (Photo: VNA)

Despite this effort, some firms are anticipating more detailed and aggressive actions to ensure success.

Resolution No 33/NQ-CP focuses on promoting the safe, healthy, and sustainable development of the real estate market. Its key objectives include improving institutions, promoting social housing development, and enhancing accountability through the promotion of capital sources from credit and corporate bonds.

In order to achieve these goals, the resolution seeks to remove obstacles in the development of the real estate market, particularly in terms of institutions and capital sources.

To this end, amendments to relevant laws such as the Law on Land, the Law on Housing, the Law on Real Estate Business, and the Law on Bidding will be expedited. Additionally, the National Assembly will consider issuing a resolution to pilot several policies aimed at promoting social housing development.

Problems related to capital sources for the real estate market would also be put under scrutiny, the resolution said, adding that appropriate measures would be raised to lower rates to aid the real estate market together with policies to develop the corporate bond market in a safe, healthy and sustainable way.

In addition, solutions would also be raised to boost supply and adjust property products toward a more reasonable structure with a focus on promoting affordable housing for low-income earners and workers.

The highlight of the Resolution is the implementation of a low-rate credit package worth 120 trillion VND for social housing development.

The package would meet around 12% of the capital demand for the goal of one million affordable homes for low-income earners and workers in the 2021-30 period, which would be provided to both developers and home buyers at rates around 1.5-2% lower than the average medium- and long– term lending rate of State-owned commercial banks, including Agribank, BIDV, Vietcombank and Vietinbank.

Le Huu Nghia, the director of a construction company, said the package would be a bright spot of credit for the market, but commercial banks have to opt-in.

With rates in the market staying at a high level, around 14% for lending and 9% for deposits, the reduction in rates of the package was not very significant to home buyers as they must still bear quite high rates.

Nghia said that the Government should have a credit package with a preferential rate of around 5% per year for social housing development.

The Government’s solutions were good, Nghia said, though cautioned the market is unlikely to see a rapid recovery.

Not until the third quarter of next year when relevant laws were amended, would the market see improvement, he predicted.

Deputy President of the Vietnam Real Estate Association Nguyen Van Dinh said that the resolution raised new points such as attracting foreign direct investment in developing the real estate market and directing housing development toward the real market demand together with creating a proper legal framework for housing development.

The problem was how to speed up the issuance of sub-law documents to timely provide guidance for the implementation, Dinh said.

Importantly, the resolution highlights the responsibility of local authorities in speeding up the handling of projects, improving investment processes and speeding up the procedures for the project implementation, which are expected to tackle the supply crunch, he said./.