On the afternoon of October 7, at the regular Government press conference in September 2024, the press asked about the reasons for the sudden increase in real estate prices as well as solutions to make prices suitable for the people.
Regarding this content, Deputy Minister of Construction Nguyen Viet Hung said that the sudden increase in housing and real estate prices comes from 3 main reasons.
The first is due to the imbalance between supply and demand, in which demand is greater than supply.
The second reason comes from price inflation when recently there have been many reports about high land auction prices and then deposit cancellation in Hanoi.
The third reason is due to the high cost of construction investment and land use fees.
According to Mr. Nguyen Viet Hung, to solve the problem of high real estate prices and ensure that they are suitable for people's purchasing ability, it is necessary to control the above 3 causes. Currently, many laws have stipulated contents related to this issue.
Many laws have stipulated against price inflation and market manipulation such as the Criminal Code, Competition Law, and Land Law. In particular, the 2023 Real Estate Business Law has many strong and clear provisions prohibiting market manipulation, price hikes, and price inflation.
In addition, to promptly rectify the manipulation and inflation of real estate prices, the Prime Minister issued Official Dispatch 82 with specific requirements and tasks for the Ministry of Natural Resources and Environment, Ministry of Construction, and People's Committees of provinces and cities.
From the Prime Minister's telegram, the Ministry of Construction issued a document analyzing the cost structure, selling price, and causes of real estate price increase as well as proposing a number of solutions to reduce housing and land prices and stabilize the real estate market, sending it to the Office of the Government to report to the Prime Minister.
In addition, the Ministry of Construction also issued documents on strengthening the management and control of real estate price fluctuations to the People's Committees of provinces and cities. In the documents, the Ministry of Construction made many proposals and recommendations.
The Ministry of Construction proposed to strictly implement the Prime Minister's Official Dispatch No. 82, including strengthening the inspection and supervision of the implementation of legal regulations related to projects, investors, and brokerage units with price inflation for profiteering, thereby taking preventive measures.
Proposing that provinces and cities speed up progress and resolve administrative procedures on land clearance investment and land use fee determination to ensure market supply and limit supply-demand imbalance, especially in Hanoi and Ho Chi Minh City.
The Ministry of Construction recommends that the Government assign the Ministry of Construction to coordinate with relevant ministries and branches to research and propose to competent authorities to consider piloting a model of a real estate transaction center and land use rights transaction managed by the State to limit price and legal risks for buyers.
“With this model, illegal capital mobilization will be limited. The State can have better information on selling prices,” said Deputy Minister of Construction.
The Ministry of Construction recommends that the Government assign the Ministry of Finance to research, consult, and advise competent authorities to issue appropriate tax policies to limit the situation of real estate that has been bought and sold but is abandoned or not used, causing waste of social resources, as well as creating virtual demand in the real estate market.
