Real estate 'fevers' need to cool down promptly

According to Tuoi Tre Online , since the beginning of the year, there has been a "price fever" in Hanoi. Apartment prices in many suburban areas in the west, southwest, and east of Hanoi have increased sharply.

Many apartment projects in the urban cluster along Thang Long Avenue are being offered for sale at prices double that of the first half of 2023, at 65-80 million VND/ ^m2 .

Similarly, the winning auction price of land in suburban districts of Hanoi has also increased rapidly compared to the end of 2023.

The auction of 68 land lots in lane 3, Thanh Than village, Thanh Cao commune, Thanh Oai district, Hanoi is an example. The winning bid price of the land lots was pushed up to over 100 million VND/ ^m2 .

Meanwhile, in similar residential land plots in Kim Bai town, the center of Thanh Oai district (about 2km from Thanh Than village), the selling price of similar residential land plots at the end of 2023 was only about 40-50 million VND/ ^m2 .

Data from Property Guru Vietnam also shows that the history of land sales in Thanh Cao commune, Thanh Oai district from the end of 2023 to now has increased, but is only 1/3 of the auction price of land in Thanh Than village that has just been announced.

Specifically, land prices in Thanh Cao commune in the fourth quarter of 2023 range from 14 - 23 million VND/ ^m2 , in the first quarter of 2024 from 14 - 32 million VND/ ^m2 , and in the second quarter of 2024 from 18 - 39 million VND/ ^m2 .

Many real estate experts believe that the auction of residential land on a small scale of a few dozen lots in many suburban districts of Hanoi with sky-high winning bids may make many people mistakenly believe that suburban land prices have increased.

In fact, this is a very small supply, not representative of the market, so buyers need to be alert to avoid buying land many times higher than its real value.

Will use taxes to regulate the market

According to Article 34, Decree 96/2024 of the Government guiding a number of articles of the Law on Real Estate Business, the Ministry of Construction will base on price indexes, number of real estate transactions and socio-economic indexes and statistics in other related sectors and fields or as directed by the Government to assess the real estate market situation and propose market regulation.

Research, synthesis of reports assessing the situation and proposing measures to regulate the real estate market are carried out when the real estate transaction price index (houses, apartments, land) fluctuates by more than 20% in 3 months or when the real estate market has other fluctuations that affect socio-economic stability.

Measures to regulate the real estate market will be introduced within 15 days when market price fluctuations occur.

Accordingly, the Ministry of Construction will coordinate with ministries, ministerial-level agencies, and provincial People's Committees to synthesize and assess the market situation and propose specific regulatory measures.

Measures to regulate the real estate market when market price fluctuations increase or decrease by more than 20% according to regulations recently issued by the Government include:

The Ministry of Construction proposed that the Government issue measures to regulate the real estate market related to laws on urban planning, construction, housing, real estate business, programs and plans for urban development, housing, real estate, and product structure on the market.

The Ministry of Planning and Investment proposes measures to regulate the real estate market related to laws on investment and bidding.

The Ministry of Natural Resources and Environment proposes measures to regulate the real estate market related to land law.

The Ministry of Finance proposes measures to regulate the real estate market related to legal policies on tax, finance, securities, and corporate bonds.

The State Bank will propose measures to regulate the real estate market related to credit laws.

Provincial People's Committees will review the implementation of real estate projects in localities and propose specific regulatory measures.

After relevant ministries, branches and localities propose measures to regulate the real estate market, the Ministry of Construction will synthesize, report and assess the situation, propose measures to regulate the real estate market, and submit them to the Government for decision.

In case the measures to regulate the real estate market exceed the authority of the Government, the Ministry of Construction shall report to the Government to submit to the National Assembly, and the National Assembly Standing Committee shall decide.