The Prime Minister has directed action against acts of creating artificial prices and driving down real estate prices.

On the afternoon of May 24th, presiding over a working session of the Government Standing Committee with ministries, agencies, associations, banks, and businesses on the real estate market situation, Prime Minister Pham Minh Chinh directed decisive action to address acts of creating artificial prices, speculation, manipulation for profit, and disrupting the real estate market.

Hà Nội Mới•24/05/2025

Photo caption — Prime Minister Pham Minh Chinh chaired a meeting of the Government Standing Committee on the real estate market situation. Photo: Duong Giang/TTXVN.

Also attending were Deputy Prime Ministers ; ministers and heads of ministerial-level agencies; and representatives of leaders from ministries, sectors, associations, banks, and businesses in the real estate and related fields.

We need to increase supply to bring down real estate prices.

Over the past period, the Government and the Prime Minister have issued numerous resolutions, directives, decisions, and official dispatches, with many specific and decisive solutions and tasks to remove difficulties and obstacles, and promote the safe, healthy, and sustainable development of social housing and the real estate market; establishing Steering Committees and working groups of the Prime Minister to review, supervise, and resolve difficulties and obstacles related to projects.

The government has drafted and submitted to the National Assembly numerous laws for amendment and supplementation, and issued related resolutions to address shortcomings and ensure the consistency of the legal system related to real estate.

According to the Ministry of Construction, in the first quarter of 2025, the number of commercial housing development projects increased compared to the fourth quarter of 2024 and the same period last year. Specifically, 14 commercial housing projects were completed, with a scale of over 3,800 units, an increase of 40%; 26 new projects were licensed with a scale of nearly 16,000 units, an increase of 44%; 59 projects met the conditions for selling housing units under construction with approximately 20,000 units, an increase of 55%; and 994 projects are under construction, with a scale of nearly 400,000 units.

For infrastructure investment projects aimed at transferring land use rights for people to build their own houses, development slowed down compared to Q4 2024 and compared to the same period in 2024. In Q1 2025, 17 projects were completed with over 4,400 plots/land parcels; 490 projects are underway with a scale of over 19,000 plots/land parcels; and 11 projects were licensed with a scale of approximately 3,400 plots/land parcels.

Real estate transactions, including apartments, detached houses, and land plots, all increased compared to the previous quarter. Specifically, there were over 33,000 successful transactions for apartments and detached houses, a 32% increase compared to Q4 2024, and over 101,000 successful land plot transactions, an increase of over 16%.

Overall, in the first quarter of 2025, real estate prices continued to trend upwards, but the rate of increase varied for each type of property at different times, locations, and areas within different localities. Specifically, apartment prices ranged from under 45 million VND/ ^m² to approximately 200 million VND/ ^m² ; villa and townhouse prices in projects commonly ranged from 100-200 million VND/ ^m² , with some projects asking for prices exceeding 300 million VND/ ^m² .

Regarding the development of social housing, over 1,300 locations with a total land area of more than 9,700 hectares have been planned nationwide for social housing development. Implementing the Project to build 1 million social housing units, currently 679 projects have been launched nationwide with a scale of over 623,000 units, of which 108 projects have been completed with 73,000 units and 155 projects have commenced construction with a scale of over 132,000 units.

According to calculations, 22 provinces and cities will meet the target for social housing development with nearly 48,000 units; while 22 other localities will struggle to meet the target, with over 23,000 units; notably, 19 provinces have not yet implemented social housing projects.

At the conference, delegates assessed the following: Limited real estate supply; imbalances in real estate segments; high real estate prices compared to the affordability of the majority of the population; slow progress in implementing social housing projects; many real estate projects facing obstacles related to legal procedures concerning land, investment, bidding, auction, and construction; difficulties and obstacles related to land price regulations; slow procedures for preparing and implementing real estate projects in many localities; and shortcomings and limitations in organizing land use right auctions in some localities.

Delegates also noted that the management of real estate business and brokerage activities is still limited, with instances of artificial price manipulation and speculation; businesses face difficulties in accessing capital; and fluctuations in various sectors and investment channels such as gold, stocks, bonds, and inflation have impacted public sentiment, leading to a shift of people's and investors' money towards real estate.

Across the country, there are approximately 788 real estate projects facing difficulties and obstacles related to land, investment, planning, construction, housing, bidding, project funding, and implementation of inspection conclusions. These projects are being actively addressed; however, some issues remain unresolved, primarily falling under the jurisdiction of local authorities.

Delegates proposed that, in addition to addressing the aforementioned difficulties and obstacles in the real estate market, it is necessary to reduce land prices and other cost components affecting real estate prices; to have plans, targets, and regulations for real estate segments in a rational manner; and to strictly handle acts of price manipulation and market manipulation…

Ensure that all citizens have a place to live.

Concluding the conference, Prime Minister Pham Minh Chinh highly appreciated and acknowledged the opinions of the delegates; he requested the Deputy Prime Ministers in charge to direct relevant ministries and agencies to continue reviewing and proposing to the National Assembly the issuance of resolutions to remove obstacles and inadequacies in laws related to real estate, especially those with a leverage and foundational nature; along with reviewing and amending decrees and circulars in a streamlined form to ensure the real estate market develops safely, healthily, sustainably, fairly, and in accordance with the country's conditions and people's income; so that commercial housing, together with social housing and housing under the program to eliminate temporary and dilapidated houses, contributes to improving housing for the people and ensuring the people's right to housing.

Reviewing the efforts of the Government, ministries, sectors, and localities, and the results of real estate market development in the past period, as well as existing shortcomings, limitations, and their causes; in the coming time, Prime Minister Pham Minh Chinh requested ministries and sectors to research and resolve obstacles, reduce the structural components of real estate costs to lower real estate prices; and increase supply to increase people's access to real estate.

Prime Minister Pham Minh Chinh directed the strict implementation of decentralization and delegation of power in accordance with resolutions and directives of the Central Committee, the Politburo, the Secretariat, General Secretary To Lam, the Government, and the Prime Minister, following the two-tiered local government model; reducing administrative procedures, resolutely eliminating cumbersome and unnecessary procedures; abolishing unnecessary and inappropriate standards and regulations; and developing practical and effective policies for homebuyers.

"I emphasize the need for decisive action against acts of creating artificial prices, speculation, and manipulation for profit in land auctions, disrupting the real estate market, and preventing people from being deceived," the Prime Minister noted.

The Prime Minister requested research into solutions related to land clearance that are appropriate to the situation, emphasizing the role of local authorities in land clearance. Local authorities should review projects facing legal obstacles and propose mechanisms to resolve them; plan appropriate real estate development, reserving prime and convenient locations for long-term production, business, and services; and develop infrastructure and create land reserves for residential real estate development in less favorable areas.

The Head of Government directed the Ministry of Construction to coordinate with localities to inspect and promptly resolve difficulties for real estate projects; to study procedures for integrating investment procedures into a single decree; to urgently build a housing database connected to the population database; to study a model for a state-managed real estate and land transaction center; to urgently develop Government resolutions and decrees to implement the National Assembly's resolution; to study the issuance of regulations to support essential infrastructure for the real estate market, especially social housing, for sustainable development; and to study the development of a real estate market with diverse types and services in accordance with development laws and practical realities.

The Ministry of Agriculture and Environment, in collaboration with the Ministry of Finance, will review land regulations and land valuation procedures, amending existing regulations if necessary. They will direct the People's Committees of provinces and centrally-governed cities to assess and issue land price tables, compensation for land clearance, increase deposit amounts in land auctions, and strictly handle acts of exploiting auctions to disrupt the market.

The Ministry of Public Security must immediately intervene to deal with those who manipulate and disrupt the market. The Ministry of Agriculture and Environment should develop regulations on auctions that are strong enough to deter and prevent this situation.

The Ministry of Finance is urgently researching and issuing policies to tax unused land and housing, the difference between land price and selling price, and establishing mechanisms to handle opaque transactions; ensuring transparency, appropriateness, and avoiding abrupt changes; coordinating with the Ministry of Construction and other relevant ministries and agencies to implement digital transformation in transactions and procedures; reviewing and classifying difficulties for immediate resolution; urgently implementing the National Assembly's Resolution upon its issuance; and urgently establishing the National Housing Development Fund by June 2025.

The State Bank of Vietnam directs commercial banks to provide housing loans, contributing to credit growth; to reduce procedures and create favorable conditions for people and businesses, while ensuring control; to urge banks to participate in the 120 trillion VND loan program; to direct the inspection of commercial banks providing loans, focusing on risk management; and to prevent complicity in violations involving price manipulation to create new or artificial price levels.

The Ministry of Public Security has directed agencies and localities to review projects showing signs of violations, initially addressing them through economic measures before considering other options; preventing citizens from being scammed in land-related matters; and directing fire prevention and fighting units to research high-tech solutions to control fire prevention and fighting, minimize fires and explosions, and reduce costs for citizens.

Local People's Committees should disseminate policies and publicly disclose real estate information to ensure people have full access to information; prevent individuals from exploiting and defrauding people; expedite administrative procedures and consider eliminating investment approval procedures; coordinate with ministries and agencies to develop resort real estate due to demand; prioritize the development of social housing with available clean land; strive to achieve social housing development targets; urgently build a database on land and housing; strengthen inspections to correct, prevent, and handle violations; encourage those who perform well; and establish real estate trading floors.

Prime Minister Pham Minh Chinh urged businesses to proactively review and restructure their investment project portfolios to meet societal needs; review ongoing projects to ensure compliance; reduce costs and save expenses to lower housing prices, based on the principle of harmonizing benefits and sharing risks; proactively address difficulties and obstacles; responsibly focus resources on resolving difficulties and obstacles; and complete legal procedures to expedite project implementation and increase market supply.

The Prime Minister requested all stakeholders to uphold a sense of responsibility and patriotism to control the real estate market, ensuring its rapid, sustainable, healthy, and long-term development; guaranteeing equal access to housing for the people, and contributing to improving the people's material and spiritual lives.

Source: https://hanoimoi.vn/thu-tuong-chi-dao-xu-ly-cac-hanh-vi-tao-gia-ao-keo-giam-gia-bat-dong-san-703388.html