There are still unusual factors, sudden price increases
This morning (October 28), continuing the 8th Session, the National Assembly discussed in the hall the implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023.
Speaking at the discussion hall, National Assembly delegate Ta Van Ha (Quang Nam province delegation) said that in reality, the real estate market has increased in price sharply and suddenly.
Besides institutional and policy problems, delegates said there were signs of manipulation and price inflation, creating a real estate bubble by a group of interests.
“We need to assess the problem closely and accurately, from which we can point out specific and fundamental solutions. The draft Resolution has assessed the limitations, but mainly the limitations in policies and laws.
Besides, there are still unusual factors, sudden price increases, not suitable with the general reality and people's needs" - delegate Ta Van Ha said.
Some solutions proposed to reduce real estate market prices are real estate bonds. Currently, real estate bonds are issued with an interest rate of 12-15%, plus about 3% issuance fee.
However, delegate Ha said that with the current issuance of real estate bonds, the outstanding debt in this sector will be under great pressure when it matures.
“If we do not control closely to restore and develop the real estate market, the issuance of bonds will not be effective. Moreover, the period of about 3 years, but having to pay such high interest rates, will easily create a burden for the state and the people, leading to the risk of increasing bad debt and even bankruptcy” - the delegate of Quang Nam emphasized.
Building a trading floor management mechanism
Meanwhile, National Assembly Delegate Hoang Van Cuong (Hanoi National Assembly Delegation) said that it is necessary to build a mechanism to manage professional real estate trading floors.
Delegate Hoang Van Cuong emphasized that the outstanding thing is that real estate prices in big cities are very high and continuously increasing, exceeding the payment level of the majority of people in need of housing.
The delegate pointed out that the abnormally high real estate prices due to the increase in buyers for accumulation purposes have caused the cash flow into real estate to increase, not flowing into production and business; the supply of real estate is increasingly scarce; in addition, market forces such as brokers and auctioneers deliberately push prices up to make profits.
To control real estate prices, delegate Hoang Van Cuong proposed requiring auction participants to prove their financial ability to purchase the property, in order to eliminate those who only bid for resale.
Immediately implement Article 31 of the Law on Prices on checking price formation factors when there are unusual fluctuations, and at the same time require enterprises to declare initial selling prices on the secondary market.
In addition, build a mechanism to manage professional real estate trading floors in some major cities, to transparently manage market operations.
However, delegate Duong Van Phuoc (Quang Nam National Assembly Delegation) raised his opinion to debate with delegate Hoang Van Cuong (Hanoi) and mentioned increasing the deposit during the auction.
According to delegate Phuoc, in each auction session it is impossible to promptly assess the capacity of each auction participant.
The delegate cited that in Quang Nam, there was an auction for a sand mine, the initial price was just over 1 billion VND, but after 200 rounds of bidding, from 8am today to 8am the next day. The result of this auction was over 370 billion VND. "The risk of deposit cancellation is certain, we can confirm that" - delegate Phuoc said.
This delegate believes that the goal of the auctioneer here is to win at all costs, then abandon the deposit so that the business can monopolize and push the price up.
“According to the law, they only have to deposit 20% of the starting price, which means they only have to deposit about 200 million. If they can achieve their goals by waiving the deposit, they are willing to do so. Businesses are willing to forgo the deposit to achieve their monopoly, monopolize, and raise prices,” said delegate Duong Van Phuoc.
In response, delegate Hoang Van Cuong said that increasing the deposit would hinder buyers' psychology because not everyone who deposits and participates in the auction can buy. He said that it is necessary to increase the conditions for auction participants.
