“Manipulation in the real estate market is very sophisticated”

On the morning of October 31, continuing the 6th session, the National Assembly discussed in the hall a number of contents with different opinions of the draft Law on Real Estate Business (amended).

There is still a real estate "bubble"

Giving his opinion, delegate Trinh Lam Sinh (An Giang delegation) emphasized that this is a very important Law project, with many related contents referring to the Land Law (amended) and the Housing Law (amended) and a number of other laws.

If the law is passed by the National Assembly, it will contribute to removing bottlenecks, helping the real estate market develop healthily, and at the same time making State management more effective and efficient.

Commenting on prohibited acts, Mr. Sinh suggested that the Drafting Committee add more regulations on acts of manipulating and disrupting the real estate market, and clearly define the signs of manipulating and disrupting the real estate market.

“Recently, manipulative behavior has destabilized the real estate market and affected the country's socio-economic development,” said Mr. Sinh.

Real Estate - “Manipulation in the real estate market is very sophisticated” — Delegate Trinh Lam Sinh, An Giang delegation (Photo: Quochoi.vn).

According to delegate Sinh, the provisions in Point a, Clause 2, Article 9 on the conditions for real estate business are still general. To be consistent with the provisions of the Penal Code and the Law on Handling of Administrative Violations, while ensuring full conditions and avoiding the omission of many unqualified organizations that still participate in real estate business, the delegate suggested that the Drafting Committee consider adjusting and supplementing the content.

Specifically: “Not during the period of being banned from doing business, being banned from raising capital, or having completed the sentence but not yet having the criminal record cleared for crimes in activities, or related to real estate business activities, or having the right to use a license or practice certificate revoked for a limited period, or not yet expired, is considered not to have been administratively handled for violations in activities or related to real estate business activities”.

Also giving comments on some prohibited acts in the draft Law, delegate Trinh Xuan An (Dong Nai delegation) requested to continue clarifying the prohibited acts, manipulation, and price fixing in the real estate market in the Law and have regulations to eliminate them.

Mr. An emphasized: “Manipulation in the real estate market is no less dangerous than manipulation in the stock market. Currently, manipulation in the real estate business market is very sophisticated, there is a “bubble” situation, prices are sky-high compared to reality.”

Real Estate - “Manipulation in the real estate market is very sophisticated” (Figure 2). — Delegate Trinh Xuan An, Dong Nai delegation (Photo: Quochoi.vn).

Delegate Trinh Xuan An pointed out that the manipulation of the real estate market is not only through bidding at high prices and abandoning deposits, but also using the price of one project to boost the price of another project and increase the price level very high. "If this issue is not thoroughly handled, it will create a "bubble". Therefore, it is necessary to regulate the act of prohibiting price manipulation in this draft Law", Mr. An suggested.

Delegate Nguyen Huu Thong (Binh Thuan delegation) also proposed adding regulations prohibiting acts of manipulating and disrupting the real estate market, including collusion in land use rights auctions and auctions aimed at inflating land prices in surrounding areas.

“In fact, this behavior has been common in recent times, causing land prices to increase, and people who really need housing and real estate cannot buy land and build houses,” said Mr. Thong.

Proposal to remove regulations on credit balance ratio conditions

Giving his opinion on the draft Law, delegate Nguyen Van Manh (Vinh Phuc delegation) said that the conditions for organizations and individuals when doing real estate business in Article 9, according to which point c, clause 2 stipulates that real estate business enterprises must ensure the ratio of outstanding credit and outstanding corporate bonds to equity capital.

Real Estate - “Manipulation in the real estate market is very sophisticated” (Figure 3). — Recently, land prices have increased, people who really need housing and real estate cannot buy land and build houses (Photo: Huu Thang).

According to Mr. Manh, this is a new progressive regulation, aiming to contribute to ensuring the debt ratio of investors to serve business activities.

"However, this regulation has not yet determined the minimum and maximum ratio of outstanding debt to the capital owned by the investor and the time of determining outstanding debt according to the accounting year or at the time of establishing the investment project," Mr. Manh said and suggested that the law be clearly regulated and the Government should not be assigned to specify this in detail.

Delegate Trinh Xuan An also said that it is necessary to remove the regulations on conditions of credit balance ratio and corporate bond balance ratio because such regulations are "unnecessary and more complicated" due to the specific conditions on capital and legal status .

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