Buying and selling, creating artificial scarcity is pushing house prices up

ANH HUY |

According to the Minister of Construction, the shortage of commercial housing in the mid- and low segments leads to speculation, buying and selling, pushing house prices up.

On August 22, the National Assembly discussed in the hall the policy orientation for amending the Law on Real Estate Business.

Many delegates were interested in discussing issues such as controlling capital mobilization for real estate products formed in the future; removing procedures for real estate project transfer or protecting the rights of homebuyers.

Explaining and absorbing the discussion opinions, Member of the Party Central Committee, Minister of Construction Tran Hong Minh said that in recent years, house prices in some segments have "increased too high".

According to the Minister, through actual surveys, the costs constituting real estate prices are currently very high, including land use fees, site clearance compensation prices, housing construction costs, technical infrastructure costs, financial costs incurred during the waiting time for procedures, investor management costs, selling costs, and tax costs.

In fact, the supply of segments has not met market demand. Lack of commercial housing in the mid-range and low-end segments, lack of social housing and rental housing, but surplus in the high-end housing segment.

This is why it leads to speculation, buying and selling, creating artificial scarcity and pushing house prices up.

To solve this situation in the coming time, the Minister of Construction said that the Ministry will focus on implementing key solutions, such as strongly developing social housing as well as rental housing, adjusting the supply structure to overcome the surplus situation in the high-end segment.

At the same time, continue to urge localities and businesses to drastically implement the assigned targets for social housing and rental housing.

In addition, continue to review and research proposals to appropriately use market regulatory tools such as taxes, credit, and planning to control speculation, limit real estate accumulation investment, and direct resources to meet the actual needs of the people.

The Ministry of Construction will also coordinate to direct the removal of difficulties and definitively handle backlog real estate projects. Complete the information system on housing and the real estate market to strictly control and strictly handle speculative price increases.

Previously, delegates were concerned about the conditions before and after real estate project opening for sale, especially the limited deposit rate at 5%.

According to the Minister of Construction, in fact, many cases have occurred before when projects did not meet legal conditions, but investors had already received deposits, causing negative impacts on society.

Therefore, the 2023 Real Estate Business Law has stipulated that the minimum condition to receive a deposit is not exceeding 5% of the selling price.

Depositing is not just about issuing a project paper, but it must meet legal procedures and complete land financial obligations before being allowed to deploy sales" - Minister Tran Hong Minh emphasized.

ANH HUY
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National Assembly discusses policy orientations for amending the Law on Real Estate Business

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Minister of Construction: Strictly prohibit the situation of land subdivision and sale in urban areas

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According to the Minister of Construction, in urban areas of type I, II, III, it is necessary to focus on housing development, and at the same time strictly prohibit the situation of subdivision and sale of land plots.

Ministry of Construction answers land documents to issue construction permits

Theo Cổng thông tin Chính phủ |

The Ministry of Construction has just answered the regulations on legal land documents for issuing construction permits.

Forecast of house prices may decrease when newly built apartments have a term of use

Như Hạ |

According to experts, stipulating the term of use of apartments according to the construction age is a direction suitable to reality.