Deputy Minister of Construction: Housing prices increase unreasonably due to speculation

At the regular press conference for the third quarter, talking about the recent "hot" increase in housing prices, Mr. Hung pointed out the two main reasons: speculation and market psychology. " Speculation causes housing prices to increase unreasonably and buyers have the mentality of buying houses to wait for prices to increase, which causes housing prices to increase even more sharply ," the Deputy Minister emphasized.

Therefore, according to the Deputy Minister, to stabilize the market, it is necessary to stabilize the psychology of home buyers through communication work.

Explaining further about this situation, Mr. Vuong Duy Dung - Deputy Director of the Department of Housing and Real Estate Market Management ( Ministry of Construction ) - said that the strong fluctuations in housing prices in recent times are due to many reasons.

Firstly, due to increased input costs, especially land use fees, labor costs, etc. Secondly, due to limited real estate supply. Although supply in the second quarter has improved, it is not significant. " When supply is limited, speculators and brokers will have an impact on price stimulation, price inflation, and market information disruption, causing prices to increase further ," Mr. Dung emphasized.

Besides, according to Mr. Dung, investment activities in other sectors of the economy are not favorable, so investors pour money into some safe real estate segments to keep their money. The shift of money flow into real estate also causes house prices to fluctuate.

The Deputy Minister of Construction emphasized that speculation has caused housing prices to increase unreasonably. (Illustration photo: Minh Duc).

According to Mr. Dung, the Ministry of Construction has proposed many solutions to cool down the market recently. These include early implementation of the Land Law and the Real Estate Business Law, which are applied in daily life.

In addition, price fluctuations in recent times have also been due to auction activities, so it is necessary to review and guide legal regulations and adjust land price lists according to the 2024 Land Law to avoid negative impacts on the real estate market and ensure the rights of people and investors.

At the same time, manage real estate business activities of investor enterprises, real estate floors, real estate brokers, aiming to bring transactions through the floor and have State management, in order to make transactions transparent, avoiding price inflation.

Finally, it is necessary to amend and supplement tax policies related to real estate business, limit speculation and short-term real estate trading. According to Mr. Dung, the Ministry of Finance and related ministries have also agreed to study tax solutions.

" This is a new policy, which needs to be thoroughly and comprehensively studied, on that basis, fully assessing the impact, targeting policy subjects, from business enterprises, to sellers and buyers, to see how it impacts the market. Thereby limiting speculative activities, suitable to specific conditions, avoiding negative impacts on the market and people's trading activities, " Mr. Dung emphasized.

Chau Anh

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