The problem of high housing prices.

"The desire for a significant drop in apartment prices is very difficult because the supply cannot improve immediately while the demand for home ownership remains ever-present, especially in large cities."

Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), also stated that the reason for the skyrocketing increase in apartment prices, which has been mentioned many times, is the real scarcity of apartment supply in Hanoi .

The number of approved and implemented projects has been increasingly limited in recent years, and the number of projects eligible for sale is scarce, while customer demand, especially from young families wanting to own a home, remains very high.

Not only those with a genuine need for housing, but also investors, believing prices will continue to rise, are actively seeking to invest in real estate. Through multiple buy-and-sell transactions, each subsequent buyer profits more than the previous one, causing house prices to only increase and never decrease. By the time those with a genuine need for housing can access an apartment, the price has already remained high.

Discussing this issue, Professor Dang Hung Vo - former Deputy Minister of Natural Resources and Environment - stated that the current period is a real estate shortage, especially in the Hanoi market. This phenomenon has persisted from 2018 to the present, therefore the rapid increase in apartment prices is partly due to the genuine supply and demand relationship of the market.

However, the uncontrolled and unregulated price increases are a matter of concern. According to the expert, there is still a phenomenon of brokers inflating prices and spreading misinformation about projects, creating anxiety about further price increases amidst a supply shortage, which strongly impacts the market.

Furthermore, the expert frankly pointed out that there are groups of people hired to drive up real estate prices by making phone calls to offer to buy or sell old apartments at inflated prices, gradually creating a flow of information about rising house prices. Real estate agents then use this information to push the prices of both old and new properties to unrealistically high levels.

To address this situation, Mr. Dang Hung Vo revealed that it is extremely difficult for the management agency.

In reality, although everyone knows what "price gouging" or "price manipulation" means, it's very difficult to define it specifically. Because it's impossible to name and shame these violations, it's also impossible to enshrine them in the law for stricter penalties.

In May 2024, in response to the sharp increase in apartment prices, the Ministry of Construction acknowledged the phenomenon of price gouging and requested the Hanoi People's Committee to inspect and review real estate transactions in the city.

This will allow for corrective measures and handling of price manipulation, speculation, and other violations of real estate business laws... However, according to Mr. Vo's assessment, this is merely a "scare tactic" and has not yet addressed the core issue.

However, it must be frankly acknowledged that rising housing prices in major cities are an inevitable consequence of population growth, high demand for housing, and shrinking land availability.

However, the current growth is showing many irregularities; the development of this market still has many hidden issues, dark spots, and a lack of transparency, with unrealistically high housing prices making it inaccessible to the general public.

VARS Chairman Nguyen Van Dinh believes that this is a crucial time for the State to intervene in inspecting, supervising, and decisively handling violations in the real estate market.

Over the years, the situation of people lacking houses and land while others have an excess has become increasingly serious. Mr. Dang Hung Vo suggested that tax policies should be used to regulate those who occupy and speculate on land; and that taxes should be imposed on those who own multiple houses and speculate on land to eliminate the phenomenon of price manipulation that makes it difficult for ordinary workers to buy property due to unreasonable price increases.

Accordingly, Mr. Vo highly appreciated the Ministry of Finance's research on developing a draft Law on Real Estate Tax, including research on taxing second homes and vacant houses and land, ensuring it is consistent with Vietnam's socio-economic conditions, in line with international practices, ensuring the uniformity of the tax policy system related to real estate, and placed within the overall Strategy for reforming the tax policy system until 2030.

In addition, the expert expects that the Land Law, which is about to be implemented from July 1st, will cool down real estate prices and alleviate supply constraints. With new, more specific and clearer regulations, it will help to free up the supply of real estate in Hanoi in particular and the market in general.

Looking at the issue from a different perspective, Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, advised investors and real estate buyers and sellers to spend more time observing market developments in the coming period, as demand is about to reach a "resistance point".

Accordingly, Mr. Quoc Anh expressed concern that when the amended Real Estate Business Law comes into effect, the number of developers meeting the requirements to implement projects will further decrease, making it difficult to expand the supply.

Source: https://www.nguoiduatin.vn/e-bat-mach-ke-don-van-nan-gia-nha-leo-cao-phi-thuc-te-a670969.html