Controlling the real estate market, preventing price inflation and abandonment of land auction deposits - Lang Son Newspaper: Latest, accurate and reputable news

In recent times, the real estate market in many localities, especially Hanoi and Ho Chi Minh City, has witnessed unhealthy fluctuations, with the phenomenon of auctioning land at high prices and then abandoning deposits, causing serious consequences. This not only increases land and housing prices abnormally, creating a real estate bubble, but also limits the ability of people with real needs to access housing.

Deputy Minister of Construction Nguyen Viet Hung answered questions from reporters of news agencies and newspapers.

Phenomenon of price inflation and abandonment of land auction deposits - what is the cause?

In response to the question of more than 80% of the auctioned land lots in the district Thanh Oai (Hanoi) deposits were canceled, and housing prices increased abnormally even though transactions on the market were not active, the Ministry of Construction has officially spoken out.

At the regular Government press conference on the afternoon of October 7, Deputy Minister of Construction Nguyen Viet Hung affirmed that this is a serious issue, negatively affecting the sustainable development of the real estate market and the rights of the people.

According to the Ministry of Construction, the phenomenon of auctioning land use rights at high prices and then abandoning the deposit is one of the acts of manipulation. inflated market.

According to legal regulations, land use rights auctions must comply with the Land Law and the Auction Law. However, loopholes in regulations and insufficient sanctions have created conditions for some organizations and individuals to profit by inflating prices and then reneging on deposits, causing land prices to rise to virtual levels.

This is a violation of the law and is governed by strict regulations in the Penal Code, Competition Law, and Real Estate Business Law 2023.

Faced with this situation, the Government has issued timely instructions. The Prime Minister issued Official Dispatch No. 82/CD-TTg dated August 21, 2024, requesting the Ministry of Natural Resources and Environment, the Ministry of Construction, the People's Committees of provinces and cities, and relevant units to urgently implement measures to control the land auction situation, prevent fraud and price inflation.

To implement this directive, the Ministry of Construction has issued many important documents. Specifically, in Document No. 5333/BXD-QLN dated September 18, 2024, the Ministry analyzed the causes of real estate price increases and proposed a series of solutions to the Government Office to report to the Prime Minister.

Previously, the Ministry of Construction also issued Document No. 5155/BXD-QLN dated September 6, 2024 to the People's Committees of provinces and cities to strengthen management and control of real estate price fluctuations.

What is the solution to avoid real estate bubble?

The main solutions proposed by the Ministry of Construction include: Strictly implementing the tasks assigned under Official Dispatch No. 82/CD-TTg of the Prime Minister; strengthening inspection and supervision of law enforcement for projects, investors and brokerage units with price inflation and profiteering; strictly handling violations if detected.

Along with that, speed up the progress of resolving administrative procedures on investment, site clearance, and determining land use fees to increase real estate supply, especially in big cities.

Regularly announce and publicize information on the real estate market, approved urban and housing development projects to ensure transparency of market information and prevent fraud and scams.

Coordinate with the Ministry of Natural Resources and Environment and relevant ministries and sectors to research and propose a pilot model of “Real estate and land use rights transaction center managed by the State”. This model aims to limit price and legal risks, ensuring the rights of people when buying real estate.

The Ministry of Construction also requested the Ministry of Finance to study appropriate tax policies to prevent the situation of real estate being purchased but left abandoned or unused, causing waste of social resources.

The Ministry of Construction emphasized that strict control over price inflation and land auction deposits will not only help the real estate market develop healthily, but also protect the rights of those with real housing needs, while limiting negative impacts on the economy.

In the current context, real estate prices in big cities are still showing signs of increasing, but transactions are not really active. This shows that there are impacts from unhealthy factors such as price inflation and creating virtual prices.

Publicity and transparency of market information, increased inspection and examination, and strict handling of violations are key factors to bring real estate back to its true value, creating conditions for people with real needs to access housing.

Source: https://baolangson.vn/kiem-soat-thi-truong-bat-dong-san-ngan-chan-tinh-trang-thoi-gia-bo-coc-dau-gia-dat-5024237.html