Benefits and challenges of the policy of limiting second-hand loans
The Vietnamese real estate market in recent years has witnessed vibrant and strong growth, especially in large cities such as Hanoi and Ho Chi Minh City. However, this growth is accompanied by many problems, most clearly demonstrated by the high price of real estate, beyond the affordability of the majority of people, especially young people and low-income people. In fact, in addition to increasing housing prices, the market shows that the housing supply is limited, especially social housing. Due to the unreasonable implementation of urban planning, some areas have a lack of infrastructure, traffic congestion, lack of green space, reducing the quality of life, causing real estate prices to increase sharply in some more favorable areas, causing imbalance and unfairness in housing development in different areas in the city.
In the context of increasing real estate prices in many large cities in Vietnam, finding solutions to reduce housing prices has become a top priority for the Government and people. Recently, the Ministry of Construction has proposed three important control policies. In addition to the policy requiring transparency of real estate transactions through real estate transaction centers and land use rights established by the State and policies on developing affordable commercial housing, the most notable for the market is the lending policy for home buyers. Accordingly, except for social housing, credit institutions apply a lending limit for home loans of no more than 50% for second home loans and no more than 30% of the cost for third home loans or more.
However, this policy is currently causing a lot of controversy. First of all, the policy has affected property ownership rights, and can even be considered an excessive interference in the freedom of business and investment of people because according to the provisions of law, owners are allowed to perform all acts at their will to keep and control their assets, as long as they are not against the law and social ethics. The policy may have a strong impact on real estate investors, affecting their profits and may also lead to negative reactions from the market. On the other hand, this policy reduces the liquidity of the secondary real estate market, causing difficulties for those who want to sell their houses. In addition, the proposal also shows the risk of difficulties in implementation because it requires a strict monitoring system to prevent acts of circumvention of the law, such as asking relatives to buy a second or more house, making the policy ineffective.
Need for comprehensive and sustainable solutions to control houses
It can be seen that housing prices in the market are being affected by many different factors such as supply, construction costs, urban planning, efficiency of investment channels, etc. To solve the problem of housing prices comprehensively and sustainably, a series of synchronous and comprehensive solutions are needed.
The first is to increase housing supply. In addition to continuing to promote the "traditional" method of developing social housing (which is subject to many binding regulations from management agencies), there needs to be breakthrough and innovative solutions in developing affordable commercial housing (operating and regulating according to a more free market mechanism) to meet the housing needs of middle-income people. The government needs to have preferential policies to encourage businesses to participate in this field by prioritizing access to clean land funds at reasonable prices, simplifying legal procedures to reduce costs and project implementation time. Commercial apartments with small and medium areas, reasonably calculated based on the needs and number of users, and at the same time suitable for the financial capacity of many people, need to be encouraged for development.
Second is to improve connectivity in and around urban areas by promoting the development of transport infrastructure, especially public transport to help reduce traffic congestion. New convenient transportation can develop satellite urban areas, helping to reduce housing pressure in central urban areas. On the other hand, applying information technology to urban management can help improve land use efficiency, regulate housing prices and improve service quality to minimize imbalances in housing development in different areas in and around urban areas.
Third is to promote the development of rental housing by providing tax, land, and credit incentives for businesses that build and manage rental housing. These housing areas need to be professionally designed and managed, ensuring good quality of life and reasonable prices with clear and transparent legal regulations to protect the rights of both tenants and tenants, especially providing rental subsidies for low-income people.
Therefore, before implementing any policy, it is necessary to have a thorough study on its impact on the real estate market and the economy based on consulting experts, businesses, and people. In addition, it is advisable to pilot new policies in certain areas before applying nationwide, and regularly assess the effectiveness of policies and adjust them when necessary.
The control and implementation of financial policies related to housing requires a fair, effective and transparent management system that meets the needs of everyone. The proposal to limit lending when buying a second home or more needs to carefully consider the advantages and disadvantages, as well as deal with the risk that this limitation can slow down economic growth. To reduce housing prices sustainably, there needs to be comprehensive reform policies to make housing more accessible through synchronous solutions related to supply, planning, finance, taxes, and diversifying the development of different types of housing.
