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VNRE - The Viet Nam Real Estate Association (VNREA) should expand its role in developing the domestic real estate market, said Deputy Prime Minister Hoang Trung Hai.

VNREA's third congress held in Ha Noi on Saturday revealed the real estate market now had a surplus in some areas and deficiency in others. While many condominium projects had been unmarketable, a huge number of people could not afford to stay in their own apartments or houses, said Deputy Minister of Construction Nguyen Tran Nam, VNREA chairman.

"Viet Nam's real estate market is still young so certain structures are imbalanced and the financial system for property development is imperfect," Nam said. The market has suffered from the banks' tightened monetary policies that made it more difficult for people to get loans.

To overcome the challenges, deputy Prime Minister Hoang Trung Hai said in coming time the association should consolidate to work more efficiently, contribute more ideas to state management agencies at central and local levels, increase international co-operation, and attract high-quality staff and foreign investment.

The association should develop apartments and houses for lease that meet the real demand of the majority of renters, who have difficulty security their living arrangements, Hai said.

"The government should have policies to support enterprises that develop rental housing," Hai said.

"In coming time, if the property market increases the supply of housing, of course the market would have more customer choice," said Tong Van Nga, VNREA's deputy chairman said.

"In the past, the real estate market was stocked with luxury apartments while the mid-price apartments, which were in high demand, had low supply. In the future, real estate businesses should adjust their business strategy to focus on the real needs," Nga said.

Construction minister Nguyen Hong Quan said at the association congress on Saturday that the association should represent the national real estate businesses. They would facilitate the close co-operation with state management offices in building development policies for the domestic property market.

Quan believes that the association can overcome the current challenges in development and create products with infrastructure synchronous with the housing demands of the people.

The Association of Real Estate Viet Nam was launched in 2002 and is a social organisation for groups and individuals operating in the real estate sector and other property related sectors.

Over the past nine years, the association has increased its members from 70 in 2002 to over 1,200 in Ha Noi, HCM City, Binh Duong, Dong Nai, Can Tho and Hai Phong.

During the congress on Saturday, delegates elected the deputy minister of construction Nguyen Tran Nam to continue as chairman of the Association of Real Estate Viet Nam for the next five years.

Source: VNA

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