Real estate prices are "unrealistic", people are waiting to buy land plots at record high prices

(Dan Tri) - National Assembly delegates said that land prices in some localities are constantly reaching new levels, far exceeding people's incomes, making it impossible for many people in need to buy a house.

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 the thematic supervision of "the implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023". People have demand but cannot buy a house. Speaking at the discussion, many delegates expressed their opinions on the high real estate prices and the recent land auctions. Delegate Nguyen Thi Thuy (Bac Kan) said that recently, real estate prices in some big cities have increased very high, especially in Hanoi and Ho Chi Minh City, causing the real estate market to show signs of instability after it had just recovered. Voters are worried about the phenomenon of price inflation and price pushing, causing market information disruption. According to Ms. Thuy, real estate prices in some areas are increasing unrealistically. "The representative of the Ministry of Construction commented that the recent high increase in real estate prices is unreasonable and unusual," Ms. Thuy said.

Delegate Nguyen Thi Thuy speaks before the National Assembly (Photo: Pham Thang).

The delegate said that the story of land auctions in suburban districts of Hanoi is also "hotter than ever", with auctions going on all night, recording hundreds or even thousands of people accepting to "wait and see" to bid for land at record high winning prices. Not only in the central areas, but the heat has also spread to suburban districts, especially the sudden increase in prices of apartments (both new and old) doubling, even tripling compared to the previous period. "Land prices in suburban districts are up to more than 100 million/m2, equivalent to land in projects with invested infrastructure. Land prices in some localities are constantly setting new levels, these land prices are far exceeding people's incomes. Many people shared that after a difficult time looking to buy a house, they now have to put it aside because real estate prices have increased dramatically, especially apartments," Ms. Thuy said. Regarding the situation of speculation, price inflation, and price hikes in land, the delegate said that according to experts, in the context of the real estate market not yet fully recovered, many real estate projects and housing projects are at a standstill. People and businesses are facing many difficulties while housing prices are suddenly increasing, especially in areas without new projects, which is abnormal. According to her, the leader of the Ministry of Construction affirmed that speculation, price inflation, and price hikes are the main reasons for the high price of real estate. She said that in reality, there are groups of speculators, price inflation, and price hikes. The trick of this group is to push land prices sky high and then be willing to forfeit deposits to establish a new price level to sell the land that this group had previously collected at super-profitable prices. In addition, according to the delegate, there is also the mentality of a group of people buying real estate to wait for price increases. Every time there is a land or housing fever, this mentality among a group of people increases. "Many people are restless with the news of skyrocketing real estate prices, borrowing money to buy a piece of land, waiting for the price to increase. This mentality causes real estate prices to increase even more strongly," Ms. Thuy commented. In addition, there is an imbalance in the apartment segment. Ms. Thuy said that the market is currently seriously lacking in the supply of apartments for middle-income people but has an excess supply of luxury apartments. This imbalance in supply and demand leads to a scarcity of affordable apartments, with a high risk of manipulation because there are not many affordable apartments to compete. Ms. Thuy believes that there will be a lack of market pressure for product suppliers to reduce prices for this type of product. "The situation of speculation, price inflation, and price pushing leads to many consequences, people with real needs cannot buy houses, while many people with money are stashing it in land to seek profits. Businesses are having more difficulty in clearing land, production and business costs are increased many times according to land auction results," Ms. Thuy stated the reality. "Real estate prices are unreal" Speaking at the discussion, delegate Pham Van Hoa ( Dong Thap ) commented that at this time, land prices are feverish, there are investors who inflate prices very high but there are still buyers while there is not much demand for housing, mainly buying for speculation, renting, some people have just bought and transferred to make a profit. "The real estate market is unreal, it is difficult to price, today it is this price, tomorrow it is another price," Mr. Hoa said.

Delegate Pham Van Hoa speaks (Photo: Pham Thang).

He said that many investors have high profits, but there are also investors who are half-dead, even entangled in the law. The delegate hopes that the real estate market will return to reality according to market prices, no longer having a virtual fever like in the past. He recommended that the State pay more attention, have attractive policies, and simplify administrative procedures in real estate projects, especially social housing. From the above reality, delegate Thuy also recommended that the Government continue to have preferential policies, attractive enough to encourage businesses to develop the affordable commercial housing segment, suitable for the majority of workers; removing obstacles in current housing projects will also help reduce real estate prices. At the same time, the female delegate recommended that the Government should study and have strong measures to control real estate speculation like in the past.

Dantri.com.vn

Source: https://dantri.com.vn/xa-hoi/gia-nha-dat-hu-hu-ao-ao-dan-an-chuc-nam-cho-mua-suat-dat-gia-cao-ky-luc-20241028101543661.htm