In an interview published by news website VnExpress Sunday, Dung said,
the Ministry of Construction should take some blame for the crisis, but
developers are responsible for targeting the wrong market segment.
“The current condition of the real estate market is partly due to
inconsistent management by the government in terms of planning and
overseeing the development of the market. However, it must be said that
real estate companies just follow each other,” Dung said.
The government will not neglect the market, but property companies need
to review their business strategies and aim at the right segment, the
minister said, implying developers should focus on more affordable
projects.
Vietnam’s property market is believed to be going through the toughest period yet.
Some experts said the government’s credit squeeze has create financial
difficulties for both developers and homebuyers, while others blamed the
current situation on an oversupply of luxury products that fail to
cater to the real demand of most people in Vietnam.
“The situation is very tough now, and for at least another six months, I think we will continue to struggle,” Dung said.
“The bright spot of the market next year will be the low-income housing
segment. But prices have to be set at a resonable level to suit the
public,” he said.
The minister also said falling home prices was a good trend for the market now.
Source: Thanhnien News