The property market is “struggling and risks falling into a slump,” Le Hoang Chau, chairman of the HCM City Real Estate Association, has warned.

Speaking at a meeting Deputy Prime Minister Le Minh Khai and the Ministry of Construction held with property companies and HoREA to help mitigate problems facing the market yesterday, he said to stay afloat some had to delay development projects and even initial public offerings, which could hamper economic recovery.

Many companies were struggling to access bank credit, issue bonds and mobilise funds from customers, and were even resorting to selling their assets or products at large discounts or seeking risky loans at high interest rates, he said.

Some had cut their payroll by up to 50 per cent, he said.

"There is an oversupply of premium housing and lack of affordable commercial and social housing, and so more policies to increase the supply of the latter are urgently needed," he said.

His association called for enabling affordable housing developers and buyers to access credit more easily, especially trustworthy businesses among the former.

It also called on the Government and the National Assembly Standing Committee to consider subsidising loans given by the four Government-owned banks, BIDV, Vietcombank, Vietinbank, and Agribank, to buy or rent social housing.

It urged the Government and the State Bank of Viet Nam to increase banks’ credit quota by 2 per cent, thus increasing the amount of credit available by VND200 trillion (US$8 billion), to bolster the economy during the end of the year.

Chau also called for amendments to the 2013 Law on Land and related laws to foster the market. — VNS