Remove the blockage quickly.

- There's a strange phenomenon at many land auctions: the final price is very high, but then no transactions take place. Why would participants drive the price up to an exorbitant level, only to lose their deposit?

- That deposit is very small compared to the huge profits they make elsewhere. Because the auction results usually establish a new price level in an upward direction. Those who bid in this way are also involved in speculation, buying and selling for profit.

- Does that mean that if speculation is eliminated, the real estate market will cool down?

- Speculation is always present in a market economy. The important point is that real estate speculation in Vietnam has persisted for decades due to a lack of transparency. Overlapping laws and regulations make it easy to find loopholes. This speculation has also led to a long-term imbalance in the product structure. The high-priced segment always attracts investment, while very few businesses invest in the affordable segment.

- Another aspect is the cumbersome procedures that significantly increase project costs and prolong completion times. Cutting 30% of the time and cost associated with procedures would immediately change the market. Furthermore, tax laws haven't yet addressed speculative activities, so the money flowing into this sector remains heavily reliant on speculation.

- Real estate is a vital part of the economy and daily life. For the market to return to normal, bottlenecks need to be resolved quickly.

TU QUEO

Source: https://www.sggp.org.vn/som-go-nghen-post799891.html