Bac Giang: Preventing virtual land fever

According to the law, the State will implement market regulation measures in case real estate prices increase by more than 20% within 3 months or in cases of special market fluctuations. Regulatory measures are specifically stipulated in the 2024 Law on Real Estate Business and the decree guiding the implementation of this Law.

Land prices in the New Urban Area in the West, Voi town (Lang Giang) once increased when there was information about the administrative boundary arrangement.

In terms of market management, the recent localized real estate boom is one of the issues that state management agencies are concerned about and will carry out necessary activities to promptly grasp and perform the functions of regulating supply and demand if necessary. In terms of practical impact, the increase in real estate transaction value in some areas as reflected by about 30% will create 2 groups of subjects directly affected: One is that real estate projects implemented in the area in the future will be partially affected when referring to calculating land use fees. Two is that access to land for housing construction for people with real needs will be more difficult.

The virtual “fever” of real estate will affect the market. Managers need to grasp and regulate to help investors implement projects more conveniently and people can access affordable real estate. Therefore, verifying activities to ensure accuracy and transparency is extremely necessary, price inflation and manipulation must be prevented and strictly handled.

Currently, there are only a few businesses providing real estate brokerage services operating in a tightly organized manner, while the majority are still individual brokers working independently. Therefore, the market is easily swept away by virtual waves, lacking transparency about products such as: Legality, progress and actual space. Many individuals gossip about trends on paper and simultaneously provide inaccurate information.

As recently there were a series of rumors about the merger of administrative boundaries, so customers were advised by independent consultants to try to strengthen their trust in a new capital with spacious and modern investment, thereby creating interest and promoting transactions. These are acts of lack of transparency in real estate brokerage activities. Creating the above impacts also affects the people who caused those acts because they have lost the trust of customers.

Developing the real estate market requires professionalism from the system of 4 parties: the State, investors, distributors and consumers. To limit virtual waves, it is necessary to focus on professionalizing the distributor team. On the side of secondary investors, it is necessary to correctly identify the real estate growth potential, and should not rush to invest with the crowd while ignoring basic legal factors.

To develop the real estate market, professionalism is needed from 4 parties: the State, investors, distributors and consumers. Currently, distributors (real estate trading floors and brokerage companies) are important components, the main components contributing to the smooth operation of the real estate "flow". The law clearly stipulates the public and transparent activities of real estate when put into business. Therefore, if sales activities are professionalized, through distributors on the trading floor or brokerage companies, the market will filter out price inflation and wave-making behaviors...

Faced with the above situation, the Real Estate Association has stepped up propaganda, guiding members to actively learn and research legal regulations to operate more professionally. In the coming time, the Association will develop a training plan for members on regulations, support members in completing procedures for registering real estate trading floor licenses, posting brokerage information, etc. At the same time, state management agencies need to have specific activities to verify fluctuations; assess and forecast fluctuations, and effectively advise on solutions to regulate supply and demand. Measures beyond their authority can be proposed to the Government and the National Assembly to implement regulatory measures.

The root cause of creating virtual waves and manipulating the market is mainly due to the unprofessionalism of the distributors (in the four components). In fact, most local distributors do not have a license to operate a floor according to the provisions of the 2023 Law on Real Estate Business, only a few brokerage businesses post information about their operations on the portal of the state management agency. Promoting this component to operate regularly and professionally will help investors feel secure in entrusting products for distribution, giving them the opportunity to develop.

Realizing this, over the years, the Provincial Real Estate Association has regularly built up its membership, increased its connections, and promoted its activities. On the part of state management agencies, it is necessary to pay attention to managing investors and distributors to properly and fully comply with legal regulations in investment, business, capital mobilization, capital contribution, etc.

To limit virtual waves, we should focus on professionalizing the distribution team, including real estate trading floors and brokerage firms. From another perspective, the management of land use responsibilities also needs attention, because this is a very important and effective tool to limit speculation. The law stipulates that land users must put the land into proper use within certain time limits. Therefore, it is extremely necessary to soon issue regulations to adjust this content.

Secondary investors need to correctly identify the real estate growth potential with accurate information, their own practical knowledge and through professional, reputable brokers. Do not rush to invest with the crowd, do not ignore basic legal factors and do not pay attention to the potential on paper. Transactions must comply with the provisions of the law on taxes, fees, etc.

Nguyen Van Thanh, General Secretary of the Provincial Real Estate Association

Source: https://baobacgiang.vn/ngan-chan-sot-dat-ao-postid415375.bbg