Synchronize solutions to combat real estate speculation

In the third quarter of 2018 in Ho Chi Minh City, apartment prices increased by about 30%, mainly in the high-end segment, ranging from 60-150 million VND/m², in some places over 230 million VND/m². The government asked ministries and branches to propose solutions to tighten credit for buying second and third apartments and study anti-speculation taxes. The market also believes that a roadmap and synchronization are needed to avoid "freezing" the recovering market.

According to lawyers, real estate tax is a tool to help prevent speculation and create equal and harmonious access to land. However, the Government is considering only imposing tax on those who own abandoned real estate, those who own many real estates and considering the specific characteristics of the Vietnamese market.

Lawyer Truong Anh Tu - Chairman of TAT LawFirm said: "In short, what mechanism do we have to discourage people from accumulating too much real estate, while most young people today are having a hard time finding their first home?"

According to experts, anti-real estate speculation policies, if passed, will reduce the incentive for speculation.

Mr. Vo Huynh Tuan Kiet - Director of Housing Marketing Department, CBRE Vietnam shared: "The options, application time and tax rates need to be studied because each market has different characteristics".

According to DKRA - a real estate market research and consulting unit in Vietnam, the real estate market has recovered but supply and consumption are only 60% compared to 2019.

According to CBRE Vietnam, investors are having difficulty pricing apartments amid rising prices. Instead of reducing prices, they often apply support policies such as increasing discounts, extending preferential interest rates, and reducing management fees to reduce the financial burden on buyers.

Ms. Pham Ngoc Thien Thanh - Director of Research and Consulting Department, CBRE Vietnam commented: "In the long term, they still want a residential community to be formed at their project. They themselves do not want to attract too many buyers just for speculative investment, so the investors themselves also have a headache with this matter."

In addition, increasing the supply of social housing is an urgent requirement. Up to now, in Ho Chi Minh City, the supply of this type of housing is still very modest, reaching only 8.6% of the target assigned before the merger. Therefore, removing difficulties and clearing legal documents for social housing needs to be prioritized to meet real housing needs, or in other words, so that low-income people do not have to compete directly with high-income groups with large investment needs.

Source: https://vtv.vn/dong-bo-cac-giai-phap-chong-dau-co-bat-dong-san-100251024105902322.htm