Minister Do Duc Duy pointed out signs of speculation and land price inflation

NHÓM PV |

According to Minister of Natural Resources and Environment Do Duc Duy, some subjects participating in land auctions do not really have housing needs but are mainly speculating and manipulating prices.

This afternoon (October 28), at the 8th Session, the National Assembly continued to discuss and listen to a number of Ministers explain and clarify a number of issues raised by National Assembly deputies.

Regarding the land use rights auction that many delegates are interested in, Minister of Natural Resources and Environment (TNMT) Do Duc Duy said that recently, in some localities, land auctions have had a difference between the starting price and the winning price, showing signs of speculation and price inflation, creating a high price level, affecting the real estate market.

Minister Do Duc Duy said that, implementing the Prime Minister's direction, the Ministry of Natural Resources and Environment has inspected, reviewed and found a number of causes leading to the above situation, which is that the public planning of development areas, urban areas, and housing is not systematic, creating subjects taking advantage of land speculation.

Some participants in land auctions do not really have a need for housing, but mainly speculate and manipulate prices by pushing up prices, inflating the price of the land they have just won, or creating a virtual price level for the surrounding area. After winning the auction, they do not pay on time according to the auction regulations and show signs of abandoning the deposit.

Some localities have not proactively created land funds for land auctions, leading to a scarcity of land and housing needs for people that have not been fully met for a long time.

In addition, some localities use land prices in the current land price list that have not been adjusted in time, which are much lower than the actual land price level, as the starting price. This has caused a large difference between the winning auction price and the starting price, attracting many bidders to make a profit.

Regarding the key tasks in the coming time for land use rights auctions, in addition to strictly implementing the provisions of the Law on State Asset Auction, the Land Law, the Price Law and related laws, Minister Do Duc Duy suggested that localities when organizing land auctions need to pay attention to a number of issues such as:

Publicize planning, land use plans, construction planning, urban planning; Reasonable adjustment of land prices in the land price list as the basis for calculating starting prices; The auction regulations may stipulate a shortening of the payment time for winning bids.

Supplementing regulations on public disclosure of high-bid auction winners who abandon their deposits, restricting those who take advantage of auctions to profit and disrupt the market; It is necessary to have measures to ensure the supply of residential real estate and land at reasonable prices, suitable for people with real needs.

Overcoming the imbalance of supply and demand in the real estate market including auction products; Inspecting and strictly handling violations of land use rights auctions according to regulations.

NHÓM PV
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