The HCM City Real Estate Association (HoREA) has proposed solutions for suspended property projects to avoid damages to the property market, project backers and the State.

HoREA chairman Le Hoang Chau last Friday said the association had sent a document to the Government Inspectorate of Viet Nam (GIV) and HCM City’s authority on measures to ensure more than 100 suspended projects do not lose public assets while awaiting inspection.

The association said the HCM City People’s Committee needs to classify these projects into categories to be able to apply appropriate plans.

Authorities should allow project investors to implement administrative procedures related to land use changes, renting, land use charges and signing leasing contracts, reported infonet.vn.

HoREA has also proposed the People’s Committee direct the Department of Natural Resources and Environment and Department of Finance to calculate land use fees for real estate projects and enact mechanisms to solve problems with calculations for public land use funds that account for a small percentage of housing projects.

It also asked the authorities to strictly handle projects that have their investment decisions revoked or cancelled.

Chau said real estate enterprises in HCM City are concerned that many projects have not had their issues solved quickly by agencies.

This has led to a reduction in housing supply and an increase in real estate prices, causing problems for low- and middle-income people who occupy a major part of the market, he said.

The HoREA representative said the longer inspection process has created problems for businesses, including increasing the cost of paying bank loan interest. This indirectly creates disadvantages for home buyers in the form of increased selling prices and higher capital cost.

Real estate businesses will increase production costs and lose business opportunities, even falling in risk of bankruptcy, he said. — VNS