Prime Minister directs handling of acts of creating virtual prices, reducing real estate prices

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

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

Need to increase supply, reduce real estate prices

In recent times, the Government and the Prime Minister have issued many resolutions, directives, decisions, and dispatches with many specific and drastic solutions and tasks to remove difficulties and obstacles, promote social housing and the real estate market to develop safely, healthily, and sustainably; established Steering Committees and Working Groups of the Prime Minister to review, urge, and remove difficulties and obstacles related to projects.

The Government has drafted and submitted to the National Assembly for amendment and supplementation of many laws and issued relevant resolutions to overcome shortcomings and ensure 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. Of which, 14 more commercial housing projects were completed, with a scale of more than 3,800 units, an increase of 40%; 26 newly licensed projects with a scale of nearly 16,000 units, an increase of 44%; 59 projects were eligible to sell future housing with about 20,000 units, an increase of 55%; 994 projects are under construction, with a scale of nearly 400,000 units.

For infrastructure investment projects to transfer land use rights for people to build their own houses, development is slower than in the fourth quarter of 2024 and compared to the same period in 2024. In the first quarter of 2025, there were 17 completed projects with more than 4,400 plots/lots; 490 projects are being implemented with a scale of more than 19,000 plots/lots; there are 11 licensed projects with a scale of about 3,400 plots/lots.

The volume of real estate transactions of apartments, individual houses, and land all increased compared to the previous quarter. Of which, there were more than 33,000 successful transactions of apartments and individual houses, an increase of 32% compared to the fourth quarter of 2024, and more than 101,000 successful land transactions, an increase of more than 16%.

In general, in the first quarter of 2025, the prices of all types of real estate continued to increase, but the rate of increase for each type at each time, each location, each area in each locality was different. In particular, apartments cost from less than 45 million VND/ ^m2 to approximately 200 million VND/ ^m2 ; the price of villas and townhouses in common projects ranges from 100 - 200 million VND/ ^m2 , some projects are advertised for sale at over 300 million VND/ ^m2 .

Regarding social housing development, the whole country has planned more than 1,300 locations with a scale of more than 9,700 hectares of land for social housing development. Implementing the Project to build 1 million social housing apartments, the whole country currently has 679 projects implemented with a scale of more than 623 thousand apartments, of which 108 projects have been completed with 73 thousand apartments and 155 projects have started construction with a scale of more than 132 thousand apartments.

According to calculations, 22 provinces and cities will complete the target of developing social housing with nearly 48 thousand units; while 22 other localities will have difficulty completing the target, with more than 23 thousand units; in particular, 19 provinces have not yet implemented social housing projects.

At the conference, delegates assessed: Real estate supply is still limited; real estate segmentation is out of sync; real estate prices are high compared to the affordability of the majority of people; social housing implementation results are still slow; many real estate projects are facing difficulties related to legal procedures on land, investment, bidding, auction, construction; difficulties and problems related to regulations on land prices; procedures for investment preparation and implementation of real estate projects in many localities are still slow; organization of land use rights auctions in some localities still has shortcomings and limitations.

Delegates also said that the management of real estate business and real estate brokerage activities is still limited, there is a phenomenon of creating virtual prices and speculation; businesses are facing difficulties in capital sources; fluctuations in fields and investment channels such as gold, stocks, bonds, inflation, etc. have affected psychology, leading to a trend of shifting cash flow of people and investors to real estate.

Nationwide, there are about 788 real estate projects with difficulties and problems related to land, investment, planning, construction, housing, bidding, project capital sources, and implementation of inspection conclusions for projects... Projects with difficulties and problems are being actively handled, however, there are still unresolved problems, mainly under the authority of localities.

Delegates proposed that, along with removing difficulties and obstacles for the real estate market as mentioned above, it is necessary to reduce land prices and component costs affecting real estate prices; have plans, targets, and regulate real estate segments reasonably; strictly handle acts of price fixing and market manipulation, etc.

Ensure that everyone has a place to live

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

Reviewing the efforts of the Government, ministries, sectors, localities and the results of real estate market development in recent times, as well as the shortcomings, limitations and causes; in the coming time, Prime Minister Pham Minh Chinh requested ministries and sectors to study, remove obstacles, reduce the structural elements of real estate prices to reduce real estate prices; increase supply to increase people's access to real estate.

Prime Minister Pham Minh Chinh directed to strictly implement decentralization and delegation of power according to resolutions and directions of the Central Committee, the Politburo, the Secretariat, General Secretary To Lam, the Government, and the Prime Minister according to the 2-level local government model; cut down on administrative procedures, resolutely eliminate cumbersome and unnecessary procedures; abolish unnecessary and inappropriate standards and regulations; and develop practical and effective policies for home buyers.

“Emphasize the need to resolutely handle acts of creating virtual prices, speculation, manipulation for profit in land auctions, and monopolizing the real estate market, to prevent people from being scammed,” the Prime Minister noted.

The Prime Minister requested to study solutions related to site clearance appropriate to the situation, highlighting the role of local authorities in site clearance. Localities should review projects with legal problems, propose mechanisms to resolve them; plan appropriate real estate development, in which beautiful and convenient locations should be reserved for long-term production, business and services; develop infrastructure, create land funds 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 remove difficulties for real estate projects; study procedures to integrate investment procedures into a decree; urgently build a housing database connecting with the population database; study the model of a real estate transaction center and land transaction managed by the State; urgently develop Resolutions and decrees of the Government to implement the Resolution of the National Assembly; study and promulgate regulations to support essential infrastructure for the real estate market, especially social housing, for sustainable development; study and develop the real estate market with many types and services in accordance with the laws of development and reality.

The Ministry of Agriculture and Environment shall preside over and work with the Ministry of Finance to review regulations on land and land valuation procedures, and amend current regulations if necessary. Direct the People's Committees of provinces and centrally run cities to evaluate and issue land price lists, site clearance compensation, increase the deposit level in land auctions, and strictly handle acts of taking advantage of auctions to disrupt the market.

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

The Ministry of Finance urgently studies and promulgates a policy on real estate taxation for unused land and houses, the difference between land price and selling price, and has a mechanism to handle unclear transactions; ensure publicity, transparency, and suitability, and avoid "jerky" transactions; coordinate with the Ministry of Construction and relevant ministries and branches to implement digital transformation in transactions and procedures; review and classify difficulties for immediate handling; urgently implement the National Assembly's Resolution upon promulgation; urgently form the National Housing Development Fund in June 2025.

The State Bank directs commercial banks to provide housing loans, contributing to credit growth; cut down procedures, create favorable conditions for people and businesses, and ensure control; urge banks to participate in the 120 trillion VND lending program; direct inspections of lending commercial banks, focusing on risk management; and must not assist in violations of price manipulation to create new price levels and virtual prices.

The Ministry of Public Security directs agencies and localities to review projects with signs of violations, first fix them with economic measures, then consider other measures; do not let people be scammed in relation to land; direct fire prevention and fighting units to research high-tech solutions, control fire prevention and fighting situations, limit fires and explosions, and reduce costs for people.

The People's Committees of localities disseminate policies and publicize real estate information so that people can have full access to information; do not let subjects take advantage of defrauding people; quickly resolve administrative procedures, study to remove procedures on investment approval; coordinate with ministries and branches to develop resort real estate because there is demand; have clean land funds, prioritize social housing development; strive to complete social housing development targets; urgently build a database on land, housing, etc.; strengthen inspection to rectify, prevent and handle violations; encourage those who do well; form real estate trading floors.

Prime Minister Pham Minh Chinh requested enterprises to proactively review and restructure their investment project portfolios to suit social needs; review ongoing projects to ensure compliance; reduce prices and save costs to reduce housing prices, in the spirit of harmonious benefits and shared risks; proactively resolve difficulties and problems; responsibly focus resources to resolve difficulties and problems; complete legal procedures to promptly implement projects, increasing supply to the market.

The Prime Minister requested all entities to promote a sense of responsibility and patriotism to control the real estate market to develop rapidly, sustainably, healthily and long-term; ensure people have equal access to housing, contributing to improving people's spiritual and material life.

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