Recently, the winning price of land auctions in suburban districts of Hanoi, 30-40km from the city center, has been pushed up to more than 100 million VND/m2.
For example, recently, after 19 hours through many rounds, the highest winning price at the auction in LK03 and LK04 areas of Tien Yen commune (Hoai Duc, Hanoi) was 133.3 million VND/m2, more than 18 times higher than the starting price.
Lot LK03-06 and LK-4-06 ranked second at 127.3 million VND/m2. The other 14 lots had winning prices ranging from 97.3 to 121.3 million VND/m2.
In addition, the buzz about the auction of land use rights in Thanh Cao commune (Thanh Oai, Hanoi) has not yet cooled down, with a large number of participants, many registrations, and especially the winning bid price being dozens of times higher than the starting price, far exceeding the actual value in the area.
Faced with the reality of land prices continuously increasing in recent times, experts say that if it is impossible to use administrative mechanisms to control land prices, it is necessary to use market mechanisms synchronously with new intervention methods.
Accordingly, it is necessary to soon restart the project on real estate tax for regulation. With this tool, prices will increase and decrease according to market criteria.
Talking to Lao Dong reporter, financial expert, Dr. Nguyen Ngoc Tu - lecturer at the University of Business and Technology - said that in reality, we have not really focused on the financial aspect nor have we had a reasonable tax law system for the land market. This is also one of the reasons leading to land speculation, which leads to consequences such as inflating market prices, creating a "virtual price" fever or, more seriously, a real estate bubble...
Therefore, in order to solve potential problems, prevent speculation, and help land be used effectively, the promulgation of the Real Estate Tax Law is necessary, according to Mr. Tu. This will also be one of the measures to help reduce rising land prices.
If there are no practical reforms to the land tax system soon, the real estate market in particular and the economy in general will continue to face many consequences.
“Applying real estate tax to social life is an inevitable requirement, however, the law must be built reasonably, carefully considered and have a suitable implementation roadmap,” Mr. Tu analyzed.
Expressing his opinion on this issue, Mr. Phan Duc Hieu - Standing Member of the National Assembly's Economic Committee - emphasized that if the mechanism only uses the Land Law to implement on the basis of removing the land price framework and determining land prices according to market principles, real estate prices will only increase, not decrease.
Looking at reality, Mr. Hieu emphasized that it is not only necessary but also urgent to issue a tax policy on real estate, which was previously called "simply" taxing second homes. Second homes are not the deciding criteria, it can be based on quantity, progressive... but it must be fair.
