HCM City’s real estate market is facing several problems like multiple agencies having overlapping functions and other administrative bottlenecks, high land use fees, suspension of all build-transfer projects, and difficulty in getting credit, said Le Hoang Chau, chairman of the HCM City Real Estate Association at a meeting in HCM City.

The meeting, which was held this week with the participation of more than 200 executives from property companies, industry groups and leaders of the People’s Committee and the Departments of Construction and Natural Resources and Environment, aimed to discuss and consider ways to resolve the latter’s difficulties.

Chau said these had caused a decline in supply this year, which is expected to continue in 2019.

Nguyen Xuan Quang, chairman of Nam Long Investment Joint Stock Company, said his company was unable to proceed with a project on 8.5ha in Binh Tan District worth more than VND1 trillion (US$43 million) because the compensation rate has been rejected by owners of 0.5ha of land.

Other housing companies such as Hung Thinh Corp and Phu Long said they faced similar problems.

Real estate market information is non-existent or unclear, which also causes many risks for businesses in determining the prices of land lots and apartments, the executives said.

Too many inspections by authorities are also affecting their companies’ functioning, the executives said.

Bui Xuan Huy, general director of Novaland Investment Group Corporation, said his company suffers from too many inspections and has had to lay off more than 1,000 workers.

Replying to Huy’s complaint that two of his company’s projects have been suspended, Nguyen Thanh Phong, Chairman of the city People’s Committee, said it was done at the behest of the Government Inspectorate.

Phong instructed the Department of Natural Resources and Environment to settle the issue of land use right certificates.

Deputy Chairman of the People’s Committee, Tran Vinh Tuyen, and the director of the construction department would host monthly meetings to resolve the problems facing the real estate sector, he said.

“Improving business efficiency is important to the development of the city.” – VNS