Need to clear supply, cool down real estate prices

On November 16, at the forum "For the real estate market to return to health and development" organized by Hanoi Radio and Television with the participation of over 100 delegates from management agencies, real estate enterprises and many prestigious economic experts, it was shown that the Vietnamese real estate market is under great pressure from changes in legal policies, financial costs, and difficulties in accessing capital.

Referring to the recent "hot" increase in real estate prices, experts and managers deeply analyzed the current situation, proposed practical recommendations to solve immediate problems and provide long-term strategic directions; especially the need to apply real estate tax tools to cool down real estate prices that are too high, hindering the sustainable development of the market.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that it is necessary to develop and apply a real estate tax policy to regulate the market when it is "hot" or "frozen". However, to create a basis for application, there must be resources to build an accurate and regularly updated database of real estate transactions and prices.

At the forum, Dr. Can Van Luc emphasized the importance of adjusting fiscal and monetary policies to support people in owning houses more easily. Although the Ministry of Construction has launched preferential credit packages for social housing, such as the VND30,000 billion package with an interest rate reduced by 3% compared to last year, the number of people borrowing to buy houses has not increased much, because house prices are still too high, people cannot afford to pay.

To ease financial pressure, Associate Professor Dr. Dinh Trong Thinh suggested that the Government consider seeking more capital from foreign countries and international investment funds. "The key factor to reduce housing prices is to increase supply, especially social housing, thereby balancing the market and supporting people to buy houses at more reasonable prices," Associate Professor Dr. Dinh Trong Thinh emphasized.

From a management perspective, Deputy Minister of Natural Resources and Environment Nguyen Thi Phuong Hoa said that the Government has proposed a pilot project for investors to negotiate the right to use agricultural and non-agricultural land for commercial housing for 5 years. If approved by the National Assembly at the 8th Session, this pilot resolution will help clear the supply for the market and help cool down housing prices.

Agreeing with the opinions of tax policy experts, Prof. Dr. Hoang Van Cuong, member of the National Assembly's Finance and Budget Committee, said that taxes regulating the increased value of land and housing should be applied soon. However, it is necessary to choose the right time so as not to increase difficulties for businesses and the market, while the economy is still facing many challenges.

According to Dr. Vu Dinh Anh, tax is just a tool to limit real estate speculation, not the only solution. The core issue is to determine the correct land value as a basis for applying regulatory measures...

In recent times, the real estate market has been facing an unreasonable housing product structure, a lack of low-cost and affordable housing. Currently, in Hanoi and Ho Chi Minh City, about 70% of new supply on the market is high-end products, while there is almost no affordable housing.

According to the Hanoi Department of Construction, the city is organizing the appraisal of investment policies to serve the bidding to select investors for 4/5 social housing areas (independent) concentrated in Dong Anh, Gia Lam, and Me Linh districts.

The total land use scale of these 4 housing areas is about 200 hectares, with more than 12,000 apartments. Specifically, it includes 2 social housing areas in Tien Duong commune (Dong Anh district); concentrated social housing area in Co Bi commune (Gia Lam district) and concentrated social housing area in Dai Mach commune (Dong Anh district), Tien Phong commune (Me Linh district).

In addition, the city has decided to convert the student housing area in the new urban area of ​​Phap Van - Tu Hiep into social housing for rent. Currently, the city has assigned the Department of Construction to prepare a proposal for this investment project, to be submitted for approval in 2024. It is expected that the renovation and upgrading of buildings A2 and A3 will be completed in 2026, and the construction of building A4 will be completed no later than 2027.

Notably, the Hanoi Department of Planning and Architecture is coordinating with the People's Committees of districts, towns, and the Hanoi Industrial and Export Processing Zones Management Board to review and supplement about 15 land funds to create large-scale, independent social housing areas with synchronous infrastructure, with about 2,000 social housing apartments/area. The city requests proposals to select 2-3 areas located near industrial zones to build social housing for rent using public investment capital according to the Politburo's policy in Directive No. 34 in 2024.

Currently, in Hanoi, there are 69 social housing projects that have been and are being implemented; of which, from 2021 to now, about 0.64 million m2 of social housing floor space has been completed, with more than 10,270 apartments in 8 projects fully completed and 3 projects partially completed. In the 2024 - 2025 period, Hanoi plans to complete about 0.345 million m2 of social housing floor space, 5,923 apartments in 11 projects. Thus, in the 2021 - 2025 period, with about 15,440 apartments expected to be completed, Hanoi will reach about 78.3% of the target in the city's social housing development plan (1.215 million m2 of floor space). In the 2026 - 2030 period, Hanoi will have 50 projects implemented with about 57,170 apartments.

According to VNA

Source: https://doanhnghiepvn.vn/kinh-te/can-khoi-thong-nguon-cung-ha-nhiet-gia-nha-dat/20241117092848572