Speculation is the main cause of unreasonable house price increases.

(NLDO) - Deputy Minister of Construction Nguyen Viet Hung affirmed that speculation and the psychology of buying houses to wait for prices to increase are the reasons for the increase in prices.

At the regular press conference for the third quarter of 2024 held on October 17, the Ministry of Construction said that according to surveys and reports from several major cities and provinces such as Hanoi and Ho Chi Minh City, apartment prices increased by an average of 5-6.5% in the second quarter and 25% annually depending on the region.

Deputy Minister of Construction Nguyen Viet Hung chaired the press conference.

According to the Ministry of Construction, the selling prices of villas and townhouses in the project all tended to increase compared to the previous quarter. The prices of office space for rent and commercial premises increased slightly by about 1-3%.

Deputy Minister of Construction Nguyen Viet Hung pointed out the two main reasons: speculation and market psychology. "Speculation causes prices to increase unreasonably and home buyers have the mentality of buying houses to wait for prices to increase, which causes house prices to increase even more strongly," the Deputy Minister emphasized.

To stabilize the real estate market, Deputy Minister of Construction Nguyen Viet Hung said that solutions are needed to stabilize home buyers' psychology through communication.

According to Mr. Hung, stabilizing and promoting the sustainable development of the real estate market, so that people with real housing needs can buy houses, has always been the goal of the Ministry and the Government for many years. However, for the market to develop sustainably, there needs to be synchronous policies on finance, land and credit.

Research on issuing tax policies for real estate

According to Mr. Vuong Duy Dung, Deputy Director of the Department of Housing and Real Estate Market Management, implementing the Prime Minister's telegram, the ministry has recently reported to the Government on solutions to stabilize housing prices.

Explaining the reasons for the increase in housing prices in Hanoi, Mr. Dung said that the recent increase in housing prices in Hanoi has many different reasons. Firstly, input costs, especially land use fees and labor costs, have increased, causing housing prices to increase.

Second, although the real estate supply has improved in the third quarter, the supply is still limited, leading to speculators and brokers stimulating prices, inflating prices, causing chaos and increasing housing prices. Limited supply also pushes up housing prices in the market.

Third, other investment channels are not favorable, so investors choose real estate to invest and accumulate assets. The large shift of cash flow into the market also causes housing prices to increase further...

To control housing prices, Mr. Vuong Duy Dung said the Ministry of Construction has reported to the Government a number of solutions such as: Continuing to implement the solutions the Government has proposed in the past and in Resolution 33 on removing difficulties for the real estate market.

Effectively implement the three laws on land, housing, real estate business and guiding documents to remove difficulties for the market.

Adjust and rectify land auction activities, have stable solutions when issuing land price lists, avoid negative impacts on the market. Manage real estate business activities of investors and real estate trading floors, towards real estate transactions through floors under state management to avoid price inflation and price stimulation.

Along with that, research to amend tax policies related to the real estate market, limit speculation, buying and selling real estate in a short time. The recent real estate surfing situation also affects the selling price in the market.

"This solution (real estate tax) is also agreed upon by the Ministry of Finance and relevant ministries to study and issue tax policies for real estate" - Mr. Dung added.

However, according to Mr. Vuong Duy Dung, the imposition of tax on real estate must be carefully, thoroughly and comprehensively assessed because this is a new policy. The impact on the subjects affected by the real estate tax policy, including businesses, people, sellers and buyers, must be assessed. Furthermore, the policy must be consistent with international practices and avoid negative impacts on real estate transactions.

Source: https://nld.com.vn/thu-truong-bo-xay-dung-dau-co-la-nguyen-nhan-chinh-day-gia-nha-tang-phi-ly-196241017141117469.htm