National Assembly Delegate: There are signs of manipulation and real estate price inflation

Citing the fact that real estate prices have increased sharply and suddenly in recent times, in addition to institutional and policy problems, National Assembly delegates wondered whether there were signs of manipulation, price inflation, and real estate bubble creation by an interest group, and said that it is necessary to boldly point out in order to have a fundamental solution.

Delegate Ta Van Ha ( Quang Nam delegation) spoke at the hall on the morning of October 28. (Photo: DUY LINH)

On the morning of October 28, the National Assembly discussed in the hall the Report of the Supervisory Delegation and the draft Resolution of the National Assembly on the results of thematic supervision. "implementation of policies and laws on market management" real estate and development social housing from 2015 to the end of 2023".

Need to "diagnose the disease correctly" to have an effective solution

Commenting on the draft Resolution, delegate Ta Van Ha (Quang Nam delegation) emphasized that what people care about is how real estate market prices must be suitable to their living conditions and income, and those in urgent need of housing must be able to access and buy.

According to the Vice Chairman of the National Assembly's Committee on Culture and Education, the draft Resolution has assessed limitations, but mainly in policies and laws. There are still unusual signs in the market, such as sudden price increases, 2-3 times higher, which are not consistent with the general economic situation and people's housing needs.

“Those unusual signs, if any, are problems of monopolization, manipulation and price inflation to create a real estate bubble by an interest group. We must boldly point them out so that we can have specific and fundamental solutions,” delegate Ta Van Ha stated.

According to the delegate, one of the solutions to reduce real estate market prices is real estate bonds. Currently, real estate bonds are issued at an interest rate of 12-15%, plus about 3% issuance fee. Thus, the outstanding debt of bonds in this sector when due is under great pressure, estimated to be about 130 trillion VND in 2025.

The Quang Nam delegation said that if the cash flow of bonds issued this time is not tightly controlled to restore and develop the real estate market, they will fall into a state of maturity and the bond issuance will be ineffective.

Furthermore, with an average maturity of about 3 years, having to pay such high interest rates can easily create a burden for the state and the people, increasing the risk of bad debt and even bankruptcy.

Delegates attending the meeting. (Photo: DUY LINH)

With the above analysis, delegate Ta Van Ha commented that in the coming time, the real estate market will not be able to cool down and people will not have the opportunity to access the market.

Therefore, it is necessary to study solutions and conduct inspections, checks, and fundamentally review the proposed solutions to restore and develop the real estate market healthily and in the right direction.

It is necessary to continue to have attractive incentive policies to develop commercial housing.

Regarding the recent increase in real estate prices in some major cities, delegate Nguyen Thi Thuy (Bac Kan delegation) said that this situation has caused the real estate market, which has just recovered, to show signs of instability. Voters are worried about the phenomena of price inflation, creating waves, and disrupting market information.

The delegate stated that at the press conference on October 17, the representative of the Ministry of Construction stated that the recent high increase in real estate prices was unreasonable and unusual. Since the beginning of the year, real estate land prices and real estate prices have continuously increased in all segments, from apartments to townhouses, to villas..., not only in the central areas but the heat is gradually spreading to the suburban district markets.

“Not only in the central areas, the heat has also spread to suburban districts, especially the sudden increase in prices of apartments (both new and old), doubling or even tripling compared to the previous period,” the delegate analyzed. In addition, the story of land auctions in some suburban districts has also heated up, up to more than 100 million/m2, equivalent to project land with infrastructure investment and continuously establishing new ground, far exceeding the income of the majority of people.

Delegate Nguyen Thi Thuy (Bac Kan delegation) speaks. (Photo: DUY LINH)

Delegate Nguyen Thi Thuy also said that speculation and price inflation are the main reasons for the recent high real estate prices. Some investors inflate prices and disrupt market information to manipulate people's psychology for their own gain.

The third reason is due to the mentality of a segment of people who buy real estate to wait for prices to increase, and this practice tends to increase. And there is currently a serious shortage of supply for low-income people...

Therefore, the female delegate of Bac Kan delegation suggested that the Government continue to have preferential policies attractive enough to encourage businesses to develop the commercial housing segment to suit the budget of the majority of workers.

At the same time, the Government needs to resolutely direct to remove obstacles of current housing projects, if it is under the authority of a higher level, then report to the competent authority to remove obstacles in these projects. Along with that, it is necessary to study and implement strong measures to control the situation of real estate speculation in recent times.

Sharing the same concern, delegate Hoang Van Cuong (Hanoi delegation) said that the unusually high real estate prices are due to the high number of people buying real estate for savings, causing the cash flow into real estate to increase, not flowing into production and business; the real estate supply is increasingly scarce; in addition, market forces such as brokers and auctioneers deliberately push prices up to make a profit.

To control real estate prices, delegates proposed: Requiring auction participants to prove their financial ability to purchase assets, in order to eliminate those who only bid for resale; immediately implementing Article 31 of the Price Law on checking price formation factors when there are unusual fluctuations, and at the same time requiring businesses to declare initial selling prices on the secondary market.

Delegates also proposed building a mechanism to manage professional real estate trading floors in several major cities, in order to transparently manage market operations.

Source