Unrealistically high housing prices, proposed measures to stop speculation, apartments leading the market, time to press the accelerator button

Proposed measures to limit speculation, buying and selling for profit, market scenario for the fourth quarter of 2024, citizens' right to access land information under the 2024 Land Law... are the latest real estate news.

The Ministry of Construction will strengthen management of real estate business activities of enterprises, investors, trading floors, brokers, etc., moving towards bringing trading activities through trading floors under State management. (Photo: Linh An)

Speculation pushes housing prices unrealistically high

At the regular press conference for the third quarter of 2024 of the Ministry of Construction on October 17, Mr. Vuong Duy Dung, Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction), said that the Ministry proposed to study and amend tax policies related to real estate business activities to limit speculation and short-term buying and selling for profit, and was approved by the Ministry of Finance .

The proposal to tax those who own and use multiple houses and lands to limit speculation and short-term buying and selling for profit was made in the context of real estate and housing prices continuously increasing sharply since the beginning of the year.

Statistics from surveys and reports of several major provinces and cities such as Hanoi and Ho Chi Minh City, the Ministry of Construction said that apartment prices increased by an average of 5-6.5% in the second quarter and 25% annually depending on the area.

Mr. Dung said that the Ministry of Construction recently issued a report analyzing the housing price structure, housing price fluctuations, and proposing solutions to stabilize the market. Analysis of housing prices shows that price fluctuations have many different causes. These include fluctuations in input costs, especially land use fees, labor costs, etc.

Notably, in the third quarter, although the real estate supply has improved when the laws took effect, it is still limited. This shows that limited supply is still one of the reasons for the fluctuations in housing prices in recent times.

In addition, according to a representative of the Ministry of Construction, speculators and brokers also have an impact on price stimulation and inflation, causing market information disruption to push up housing prices.

Looking at the reality of continuously increasing real estate prices in Hanoi, Deputy Minister of Construction Nguyen Viet Hung said that there are also causes due to speculation and market psychology.

“Speculation can cause housing prices to increase unrealistically high. Especially when combined with the psychology of buying houses to wait for prices to increase. This is the reason why housing prices in Hanoi have been pushed up recently,” the Deputy Minister emphasized.

Proposing solutions to stabilize the healthy development of the real estate market, the Deputy Director of the Department of Housing and Real Estate Market Management said that the Ministry of Construction has proposed many solutions. In particular, the Ministry proposed to study and amend and supplement tax policies related to real estate business activities to limit speculation and short-term buying and selling for profit.

“This proposal is also agreed by the Ministry of Finance and relevant ministries. However, it is also necessary to comprehensively assess the impact of this policy on affected subjects. It is necessary to conduct thorough and comprehensive research to fully assess the impact on subjects from businesses, people, sellers, buyers... The solution is to limit speculative behavior and price inflation but must be consistent with international practices and specific conditions of Vietnam to avoid negative impacts on the general market and affecting transactions of people and businesses,” said Mr. Dung.

In addition, the Ministry noted that adjusting land price lists of localities according to the provisions of the 2024 Land Law avoids negative impacts on the market and ensures the rights of investors and people.

In addition, the Ministry also said it will strengthen the management of real estate business activities of enterprises, investors, trading floors, brokers, etc., moving towards bringing trading activities through floors under State management to make real estate business activities public and transparent.

Adding to this issue, Deputy Minister Nguyen Viet Hung emphasized solutions to stabilize buyers' psychology. Mr. Viet said: "To achieve the goal of stabilizing the real estate market for sustainable development, a group of solutions is needed and must be implemented synchronously in land, housing, fiscal and investment policies."

Market outlook for the fourth quarter of 2024

Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that in fact, real estate market participants are actively accelerating their access to the new legal system, since the three laws, the 2023 Law on Real Estate Business, the 2023 Housing Law and the 2024 Land Law, took effect from August 1, 2024. Thanks to that, the provisions of the new law are gradually being understood more accurately, which is an important premise for step-by-step application in practice. Therefore, in the last quarter of 2024, investors and real estate service businesses will press the accelerator button, which is likely to bring more impressive results.

Also in the fourth quarter of 2024, Mr. Dinh said that in terms of specific segments, the real estate market will record a broad recovery. Apartments, mainly high-end apartments, will continue to lead the market.

The new apartment supply of the market is contributed by the suburbs of Hanoi and Ho Chi Minh City. In Hanoi, the villa and townhouse segment will be more vibrant thanks to the attraction of a large urban area in the North. In addition, in the land segment, land with clean legal status in areas that have not yet been pushed up in price will continue to be "collected" by investors in the North and South.

Regarding social housing, the Chairman of the Real Estate Brokers Association commented that in the fourth quarter of 2024, the real estate market will record a rapid increase in "matched" demand when regulations to ease difficulties for home buyers officially "come into effect". Supply has improved across the board.

However, the supply of social housing is still facing difficulties in the two special urban areas. The scarcity of social housing will remain a difficult reality, with many challenges in the two largest markets of the state in terms of housing demand.

In addition, industrial real estate will remain the bright star of the real estate market. Factory and industrial land rental prices will continue to increase. This segment will continue to grow strongly thanks to FDI capital flows promoted by effective trade commitments and diplomatic activities as well as the expansion needs of domestic and foreign enterprises. Especially the demand for warehouses and logistics as e-commerce grows.

Ho Chi Minh City expects the highest land price to be over 687 million VND/m2

On October 16, the Ho Chi Minh City Land Price Appraisal Council reported on the appraisal of the draft decision to amend and supplement the decision of the City People's Committee regulating the land price list.

The report stated that the City Land Price Appraisal Council agreed with the proposal of the Department of Natural Resources and Environment in the report No. 10487, the opinion of the council's working group and the draft decision to amend and supplement Decision 02/2020.

At the same time, the Council assigned the Department of Natural Resources and Environment of the City to complete all documents and procedures based on legal regulations and submit them to the People's Committee of Ho Chi Minh City for consideration and decision.

The appraisal council also stated that in previous submissions, the Department of Natural Resources and Environment used agricultural land price data to calculate compensation in the city to propose agricultural land prices that did not fully reflect the price of pure agricultural land for cultivation and production activities.

Now, in the report No. 10487, the Department of Natural Resources and Environment has built a land price list for agricultural land based on the agricultural land price stipulated in Decision 02/2020 multiplied by the land price adjustment coefficient (coefficient K) according to Decision No. 56/2023 to ensure stability for agricultural production activities is appropriate.

The Council assessed that this does not affect the case of land acquisition by the State, because then the person whose land is acquired will have the specific land price determined according to market price to calculate compensation.

At the same time, the Department of Natural Resources and Environment has built a land price list for agricultural land in the High-Tech Agricultural Zone in the direction of keeping the current collection rate as appropriate.

For residential land, the Department of Natural Resources and Environment collects land price information from the price database and market transfer land prices and based on the actual socio-economic situation of the city, to propose a price list for residential land suitable for each district and Thu Duc City.

At the same time, prices have been reviewed and balanced for locations bordering districts, Thu Duc City, and road sections and routes in the same area.

Of which, the highest land prices are on Nguyen Hue, Le Loi, Dong Khoi streets in District 1, with the highest price reaching 687.2 million VND/m2. This level has been adjusted lower, when the previous draft had the highest price at 810 million VND/m2.

Citizens' right to access land information under the 2024 Land Law

Article 24 of the 2024 Land Law (effective from August 2024) stipulates citizens' right to access land information.

Specifically, as follows:

1. Citizens have access to the following land information:

a) Land use planning, plans, and plans related to land use have been decided and approved by competent state agencies;

b) Results of land statistics and inventories;

c) Land allocation and lease;

d) The land price list has been announced;

d) Compensation, support and resettlement plan when the State reclaims land has been approved by competent authorities;

e) Results of inspection, examination, and settlement of land disputes; results of settlement of complaints and denunciations about land, results of handling of violations of land laws;

g) Administrative procedures on land;

h) Legal documents on land;

i) Other land information as prescribed by law.

2. Access to land information shall be carried out in accordance with the provisions of this Law, the law on access to information and other relevant legal provisions.

Thus, people have the right to access land information as prescribed above.

Source: https://baoquocte.vn/bat-dong-san-moi-nhat-gia-nha-cao-phi-thuc-te-de-xuat-bien-phap-chan-dau-co-chung-cu-dan-dat-thi-truong-thoi-diem-an-nut-tang-toc-290571.html