According to the Ministry of Construction's assessment, regarding land-related costs, there have recently been a number of cases where the winning bids were many times higher than the starting price, which has also had an impact on the regional real estate market.
Initial reflection in some areas of Hanoi, the auction results and winning bid prices were recorded at very high levels (land auction in Hoai Duc district - Hanoi, the winning bid price was 18 times higher than the starting price).
Accordingly, there are 3 main reasons that have affected the results of the recent land auction: the low starting price attracts many participants, the low deposit to participate in the auction. At the same time, in the auctions, there are many investment groups specializing in participating in the auction and then selling immediately to make a profit. Outside the auction area, many brokers are waiting for the results, ready to buy and sell land with a price difference of 200 - 500 million VND/lot.
According to the Ministry of Construction, one of the reasons for the recent increase in real estate and commercial housing prices in some major cities is the recent increase in land-related costs as well as the impact of applying new land price calculation methods and tables. In particular, in some localities and areas, there has been a phenomenon of land use rights auctions with winning bids many times higher than the starting price.
In addition, the phenomenon of "creating virtual prices" and "inflating prices" by speculators and individuals working as real estate brokers; taking advantage of people's lack of knowledge and investing according to the crowd psychology for profit....
Based on the actual situation of real estate prices in the market in some areas in some localities and the main causes affecting the price level of land, housing, supply and demand of housing and real estate in the market, the Ministry of Construction proposes solutions to reduce housing and real estate prices and stabilize the real estate market.
Accordingly, effectively implement newly promulgated policies and laws related to the real estate sector such as the 2024 Land Law, the 2023 Housing Law, the 2023 Real Estate Business Law, the 2024 Law on Credit Institutions... and detailed regulations.
At the same time, effectively implement the tasks and solutions directed by the Government and the Prime Minister in Resolution No. 33/NQ-CP dated March 11, 2023 of the Government on a number of solutions to remove obstacles and promote the safe, healthy and sustainable development of the real estate market and Official Dispatch No. 82/CD-TTg dated August 21, 2024 of the Prime Minister on timely rectification of land use rights auction work.
Research and propose to perfect regulations related to land use rights auctions to ensure they are consistent with the practical situation, in the direction of: Increasing deposits, determining starting land prices to closely match the actual situation of the area, shortening the time to pay auction winnings, and limiting auction participants for speculative purposes.
In particular, the Ministry of Construction proposed to study and propose a tax policy for cases of owning and using many houses and lands to limit speculative activities, buying and selling houses and lands in a short period of time to make a profit, ensuring that it is suitable for Vietnam's socio-economic conditions and in accordance with international practices...
The study recommends that competent authorities consider piloting the model of "Real estate transaction center and land use rights managed by the State" to limit the situation where real estate trading floors and real estate brokerage activities can collude to disrupt the market.
Improve the effectiveness of inspection, examination and review of land use rights auction organization, project bidding, implementation of real estate projects, and real estate business activities to promptly detect and strictly handle violations according to authority and regulations of law.
Strengthen inspection, control, and effective management of real estate service business activities, real estate trading floor services, real estate brokerage services... Promote propaganda, dissemination, and legal education in the fields of land, housing, real estate business...
