Thousands of people accept to "freeload" to compete for land

Many people are "restless" with the news of rising real estate prices.

On October 28, the National Assembly discussed the National Assembly's Supervisory Delegation's Report on the implementation of policies and laws on real estate market management and social housing development (SHS) from 2015 to the end of 2023.

Deputy Nguyen Thi Thuy (Bac Kan delegation), Vice Chairwoman of the National Assembly's Judicial Committee, said that recently, real estate prices in some major cities have increased very high, especially in Hanoi and Ho Chi Minh City, causing signs of instability in the real estate market that had just recovered. Voters are worried about the phenomena of price inflation, creating waves, and disrupting market information.

Claiming that real estate prices in major cities are increasing in real terms, Ms. Thuy cited at a press conference on October 17, a representative of the Ministry of Construction said that the recent increase in real estate prices is unreasonable and unusual. In some major cities since the beginning of the year, real estate land prices and real estate prices have continuously increased in all segments, from apartments to townhouses to villas.

“Not only in the central areas, the heat is gradually spreading to the suburban district markets. Many Hanoians shared that after a very long time of buying a house, they have had to temporarily put this idea aside because of the sudden increase in real estate prices, especially apartments. Not only high-end apartments, new apartments but also old apartments have skyrocketed in price. Many apartments have been in use for several decades but are also being traded at prices that have doubled or tripled. With such high demand, thousands of households currently owning apartments often receive phone calls asking about buying and selling houses,” Ms. Thuy said.

Ms. Nguyen Thi Thuy speaks (Photo: Quang Vinh)

In addition, Ms. Thuy is concerned that the land auction in some suburban districts in Hanoi is hotter than ever. The number of auctions held overnight, recording thousands of people accepting to "freeload" to bid for land, and land prices also increased to a record when the land price in suburban districts reached more than 100 million/m2, equivalent to project land with infrastructure investment. Land prices in some cities continuously set new levels, far exceeding the income of the majority of people.

Ms. Thuy also said that the situation of speculation inflating and pushing up prices. According to real estate experts, in the context of the real estate market not fully recovering. Many residential real estate projects are still stuck, people and businesses are still facing many difficulties, but housing prices have increased dramatically in recent times. Especially increasing in areas without new projects is abnormal.

Ms. Thuy pointed out: Speculation, price inflation, and price pushing are the main reasons for the recent high increase in real estate prices. In fact, there are some speculative groups and some investors who inflate prices and disrupt market information to manipulate people's psychology for profit. The trick is to push land prices sky high at land auctions. Then, they are ready to forfeit their deposits in order to establish a new price level for the land in the area they previously bought to gain super profits.

Delegates attending the meeting (Photo: Quang Vinh)

In particular, Ms. Thuy is concerned about the mentality of a part of the population buying real estate to wait for prices to increase. In fact, every time there is a land fever, the mentality of buying real estate to wait for prices to increase among a part of the population tends to increase. Many people are "restless" when faced with information about rising real estate prices, trying to arrange money, even borrowing money to buy a piece of land, waiting for prices to increase before selling. This mentality causes real estate prices to increase even more strongly when they have already increased.

Imbalance in the apartment segment when the market is currently seriously lacking in the supply of apartments for middle-income earners but has a surplus of high-end apartments. The imbalance between supply and demand not only leads to a scarcity of affordable apartments for the working class but also poses a high risk of manipulation. Because there are not many affordable apartments to compete. When there is no competition, there is no pressure from the market for product suppliers to reduce prices. Speculation and price inflation are leading to many consequences. Many people who really need housing are finding it very difficult to buy at the present time. Meanwhile, many people with money are "staying" in land in the hope of making a profit. Businesses are having more difficulty in site clearance as well as production and business costs are being increased many times following the results of land auctions.

Ms. Thuy suggested that the Government continue to have preferential policies, attractive enough to encourage businesses to develop the commercial housing segment to suit the budget of the majority of workers. At the same time, she recommended that the Government resolutely direct the removal of obstacles in current housing projects. If it is under the authority of a higher level, then report to the competent authority to remove obstacles in these projects. Through research by experts, it is found that if the obstacles of current apartments can be removed, thousands of more apartments can be brought to the market, which will reduce current real estate prices.

Along with that, Ms. Thuy recommended that the Government study and implement strong measures to control real estate speculation in recent times.

Mr. Ta Van Ha speaks (Photo: Quang Vinh)

Delegate Ta Van Ha (Quang Nam Delegation) pointed out the fact that the real estate market has increased in price rapidly and suddenly, besides the problems with institutions and policies, there are signs of monopolization, manipulation and price inflation, creating a real estate bubble by a group of interests. Mr. Ha suggested that it is necessary to study solutions and conduct inspections, checks and review the foundations to restore and develop the real estate market in a healthy and right direction.

Delegate Pham Van Hoa (Dong Thap Delegation) said that in recent times, the real estate market, especially before the Covid-19 pandemic, has developed very strongly in both quantity and quality, with many new urban areas forming, especially in Ho Chi Minh City and Hanoi. Many new types such as tourist apartments, resort villas, offices combined with accommodation, high-rise apartments have sprung up, occupying both high-end and low-income housing spaces in the inner city and suburbs. However, at this time, land prices are hot, land prices are high, demand for housing is not high, mainly buying for speculation, renting, some people have just bought and then sold for profit. "The real estate market is unstable, half real and half unreal, difficult to price" - Mr. Hoa expressed.

Source: https://daidoanket.vn/ca-nghin-nguoi-chap-nhan-an-chuc-nam-cho-de-dau-duoc-suat-dat-10293237.html