In the first nine months of this year, real estate inventory across the country reached VND101.9 trillion (US$4.8 billion), VND12.6 trillion lower than the value in the first quarter.— File Photo

Ha Noi (Biz Hub) — The real estate inventory is finally decreasing, albeit slowly, said an official of the Ministry of Construction.

In the first nine months of this year, real estate inventory across the country reached VND101.9 trillion (US$4.8 billion), VND12.6 trillion lower than the value in the first quarter.

The reduction was due to more local real estate transactions, according to the ministry.

Investors nationwide focused on promoting apartments and houses to potential buyers.

Many commercial projects were converted to social housing so investors could take advantage of a VND30 trillion ($1.4 billion) preferential credit package. Almost all the dwellings sold were small, affordably priced apartments.

Many enterprises, especially in the south, cut prices by restructuring plans to push down production costs.

Minister of Construction Trinh Dinh Dung said the value was calculated from completed property products, although projects currently in the site clearance and construction stages also had high value.

The important thing was to square the oversupply of luxury property with the lack of affordable apartments, he said.

The ministry instructed provinces and cities to create favourable conditions for enterprises and investors to convert commercial projects to social projects as demand required.

Economist Tran Du Lich agreed the supply of low-income housing for workers should be increased, but argued the State should use the VND30 trillion package to support buyers rather than sellers.

Property expert Dang Hung Vo said many changes were needed to spur a real estate recovery, including new State policies, heightened efforts by investors and the renewed confidence of consumers.

If consumers had confidence in the market, they would invest 400 tonnes of their gold inventory in the local property market, Vo said.

Nationwide, VND4.48 trillion has been invested in 4,015 housing projects, according to the construction ministry. Of the total registered investment, VND774.7 billion (17.26 per cent) has been disbursed. — VNS