The 2024 Vietnam Real Estate Market Overview Report by Batdongsan.com.vn shows that up to 86% of buyers hold real estate for less than 1 year. They buy and sell in a short time to make a profit.
Previously, the survey results of Batdongsan.com.vn on the time of holding real estate before selling in Vietnam also recorded that in 2023, 15% of buyers held real estate for less than 3 months, 36% held from 3-6 months, 35% held from 6-12 months, 8% held 1-2 years, 4% held 2-3 years, 2% held longer.
Meanwhile, in Europe, the time of holding real estate before selling is as follows: 7% of buyers hold real estate from 1-3 years, 23% hold 3-5 years, 33% hold 5-10 years, 38% hold over 10 years.
Part of the reason is that income tax on real estate transfer and leasing activities in our country is too low.
When transferring real estate, investors only have to pay 2% income tax, income tax on real estate business rental is equivalent to 5% of revenue (applied to revenue over 100 million VND).
Research and reports by batdongsan.com.vn show that to prevent real estate speculation, many countries in the world are using income tax from real estate sales and rentals to regulate market behavior.
Accordingly, in China, income tax on land sales is 30-60%, on other real estate 20%, on residential real estate rentals 24%, and on other real estate 32%.
In Japan, income tax when selling land held for more than 5 years is 20.3%, selling land held for less than 5 years is 39.6%, when renting real estate is from 5-45%.
Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn - said that in the past 5 years, domestic real estate prices increased by 59%, higher than the same period in many countries in the region such as: Indonesia increased by 9%, Philippines increased by 38%, Thailand increased by 18%, China increased by 12%, Malaysia increased by 11%.
"If we consider the 10-year period (2015-2024), investors who invest 100 VND in apartments will earn 297 VND, land will earn 237 VND, gold will earn 230 VND, stocks will earn 209 VND, savings will earn 159 VND, and foreign currency will earn 121 VND.
"Real estate investment profits are superior to other investment channels partly because the real estate tax policy in Vietnam is lower than many countries in the region," said Mr. Nguyen Quoc Anh.
According to Batdongsan.com.vn, the proportion of real estate tax in Vietnam's GDP structure is much lower than many countries in the region.
Vietnam's rate is 0.03%, while countries like Indonesia 0.2%, Thailand 0.2%, Philippines 0.5%, Cambodia 0.9%, China 1.5%, Singapore 1.5%, South Korea 4%.
There are currently 5 types of real estate taxes in the world: property tax, income tax, registration tax, tax on vacant houses and land, and real estate development tax.
Countries usually apply 4 of the 5 types of taxes above, which are property tax, income tax, registration tax, and tax on vacant land.
Meanwhile, in Vietnam, real estate ownership tax is 0.03 - 0.2% (non-agricultural land tax, residential land tax), income tax on real estate sales is 2%, rental is 5%, registration tax is 0.5%.
Many economic experts also believe that it is time for Vietnam to issue a comprehensive tax policy to regulate market behavior, helping the real estate market develop healthily.
In fact, the practice of buying and selling houses and land in a short period of time to make a profit is considered a cause of pushing real estate prices higher than their real value and disrupting the market.
