There is a phenomenon of "auction brokers" manipulating the real estate market.

Recently, the Ministry of Construction has sent Report No. 5333 to the Government Office explaining the reasons for the recent increase in real estate prices.

High auction land prices cause excitement among people

In general assessment of the real estate market situation, the Ministry of Construction said that land allocation and leasing through auctions has limited negative aspects and the exploitation of the request-grant mechanism, contributing to supplementing a large source of revenue for local budgets. This is increasingly being implemented, expanding in scale, and increasing the value obtained each year.

However, in addition to the benefits, the Ministry of Construction's activities also revealed some limitations and negatives. Specifically, during the auction organization process, in some places there was a phenomenon of "auction brokers" and collusion that affected the rights of participants.

The phenomenon of paying very high prices for some lots and then canceling the deposit, creating a virtual price level to manipulate the market or buying and reselling many lots of land to make illegal profits is common in many places, even organized.

Unusually high auction land prices can cause public outrage.

According to the Ministry of Construction, the recent land auction results were affected by three reasons: low starting prices attracted many participants, low deposits to participate in the auction, and many professional investment groups participated in the auctions and then immediately resold them for profit.

"The winning bid price being many times higher than the starting price will have a negative impact on land prices, the housing market (supply and demand), and the real estate market," the Ministry of Construction affirmed.

Firstly, auctioning land at high prices will set a new price level, even much higher, for the area near the auction site.

Second , it affects investors' psychology, leading to an increase in the prices of housing and real estate products that have been or are being offered for sale near the auction site.

Third, increasing land prices increase input costs and lead to an increase in housing and real estate prices; businesses have little opportunity to invest in affordable, low-cost projects and are forced to invest in high-end real estate ; low- and middle-income people will find it difficult to own a home.

Fourth, it makes it difficult to attract construction investment in the area and reduces and limits future supply due to the high land price level, making it difficult for investors to access.

And finally, the result of an unusually high land price will cause difficulties in land acquisition, site clearance, and resettlement support; it can easily incite people whose land has been acquired and who have received compensation or have not received compensation to complain and demand compensation higher than the approved compensation plan, causing social instability.

Taking advantage of ignorance for personal gain

In the newspaper, the Ministry of Construction also pointed out the reasons for the increase in real estate prices in some areas and localities in recent times.

First, the increase in real estate prices is partly due to recent increases in land-related costs as well as the impact of applying new land pricing methods and tables.

Besides, there is 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 to make profits.

The "auction brokers" team takes advantage of people's ignorance to make profits.

At the same time, the lack of real estate and housing supply to meet the needs of the majority of people, low-income and middle-income earners in urban areas, especially Hanoi and Ho Chi Minh City, also causes real estate prices to increase.

Along with that, the fluctuations of the economy in recent times related to the stock market, bonds, gold... have affected the psychology of people and investors, leading to a trend of shifting people's and investors' cash flow to investing in houses and land as a safe "haven" for accumulated money and investment capital.

Ministry of Construction proposes taxing people who own multiple houses and lands

In this document, the Ministry of Construction proposed many solutions to reduce housing and real estate prices and stabilize the market, such as researching and proposing to perfect regulations related to land use rights auctions to ensure compliance with reality in the direction of: increasing deposits, determining starting prices, shortening the time to pay auction winnings, limiting auction participants for speculative purposes, etc.

Also research and propose tax policies 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 line with international practices...

The Ministry of Construction proposed to improve the effectiveness of inspection, examination and review of land use rights auction organization.

At the same time, the Ministry of Construction believes that it is necessary to have solutions and measures to limit the negative impacts of the issuance of land price lists according to the provisions of the 2024 Land Law on land prices, housing prices, and supply and demand of the real estate market.

The study recommends that competent authorities consider piloting the model of " Real Estate and Land Use Rights Trading Center managed by the State" to limit the situation where real estate trading floors and real estate brokerage activities can collude to disrupt the market.

In particular, the Ministry of Construction also proposed to improve the effectiveness of inspection, examination and review of the organization of land use rights auctions, 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, supervision and effective management of real estate service business activities, real estate trading floor services and real estate brokerage services.

Source: https://www.nguoiduatin.vn/bo-xay-dung-co-hien-tuong-co-dau-gia-thao-tung-thi-truong-bds-204240924200921514.htm