Real estate bubble of vested interests
On the morning of October 28, giving opinions at the meeting hall on the Report of the Supervisory Delegation and the draft Resolution of the National Assembly on the results of the thematic supervision of "the implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023", delegate Ta Van Ha (Quang Nam Delegation) stated that the reality of the real estate market increasing in price is high and sudden, besides institutional and policy problems, there are signs of monopolization, manipulation and price inflation, creating a real estate bubble by a group of interests.
The Quang Nam delegation said: “It is necessary to closely and accurately assess the problem, thereby pointing out specific and fundamental solutions. The draft Resolution has assessed the limitations, but mainly the limitations in policies and laws, but there are still unusual factors, sudden price increases, 2-3 times higher, not suitable to the general reality and the needs of the people”.
According to Mr. Ha, one of the solutions to reduce real estate market prices is real estate bonds. However, currently, real estate bonds are issued at an interest rate of 12-15%, plus about 3% issuance fee. Thus, the goal of issuing real estate bonds, the outstanding debt of this sector at maturity is under great pressure. If there is no tight control to restore and develop the real estate market, the issuance of bonds will not be effective. In about 3 years, having to pay such high interest rates will easily create a burden for the State and the People. It even poses the risk of increasing bad debt and even bankruptcy.
“Therefore, the real estate market cannot cool down in the coming time and people will not have the opportunity to access the market. Therefore, 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 Ta Van Ha suggested.
Appreciating the report of the Supervisory Delegation on "implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023", delegate Hoang Van Cuong (Hanoi Delegation) also said that it is necessary to build a mechanism to manage professional real estate trading floors.
According to delegate Hoang Van Cuong, the abnormally high real estate prices are due to the increase in people buying real estate for savings, causing the cash flow into real estate to increase, not flowing into production and business; the supply of real estate is increasingly scarce; in addition, market forces such as brokers and auctioneers deliberately push prices up to make a profit.
“The outstanding thing is that real estate prices in big cities are very high and continuously increasing, exceeding the payment level of the majority of people in need of housing, while income from real estate is low compared to the cost of real estate investment,” Mr. Cuong commented.
Removing institutional "bottlenecks"
Through studying the Monitoring Report, delegate Dang Bich Ngoc (Hoa Binh Delegation) emphasized that in order to promptly remove institutional bottlenecks and thoroughly handle projects with legal problems, many policies and laws on real estate market management have been issued, contributing to creating a legal framework for the development of the real estate market and social housing.
Delegate Dang Bich Ngoc stated that the report also pointed out that the State budget support capital for preferential credit programs for social housing is still low, the lending process and procedures through the Social Policy Bank are still complicated and overlapping; the maximum loan amount for social policy beneficiaries is low, not suitable for socio-economic conditions...
With these shortcomings, delegate Dang Bich Ngoc said that the National Assembly's supreme supervision of the implementation of policies and laws on real estate market management and social housing development is extremely necessary and timely, especially in pointing out institutional "bottlenecks" that have been and are needing to be removed in the coming time.
Therefore, delegates suggested that the Government continue to thoroughly review the shortcomings and limitations of policies and laws in real estate market management and social housing development.
“In addition to the 22 remaining issues and shortcomings in policies and laws after the Law on Real Estate Business, the 2023 Housing Law and the 2024 Land Law were promulgated, it is necessary to continue to review, research and propose timely and synchronous solutions to quickly remove institutional bottlenecks, appropriately resolve and thoroughly handle real estate projects facing difficulties, legal problems and stagnation due to the prolonged implementation process and many changes in laws over time, meeting the requirements for sustainable development of the real estate and social housing markets,” Ms. Ngoc suggested.
At the same time, according to the delegate of Hoa Binh, the institutional inadequacies and overlaps pointed out in the Monitoring Report are extremely important bases for the drafting agencies to update, research and amend the draft Laws right from this Session, especially the Laws on Urban and Rural Planning and the Law on Public Investment. In particular, it is necessary to study regulations in the direction of promoting decentralization and delegation of power to localities in order to enhance the role, initiative and responsibility of local authorities in accordance with their capacity and associated with resource allocation.
Also expressing his opinion on continuing to effectively implement the group of institutional solutions, delegate Duong Khac Mai (Dak Nong delegation) said that policies and laws on real estate market management and social housing development have not kept up with the rapid development of the market. Some regulations are not consistent and consistent between the law on real estate business and related regulations such as the law on land, housing, etc.
In addition, the responsibility of state management of real estate business is still lacking and unclear, affecting the effectiveness of management work. The situation of declaring land transfer prices lower than the actual price to evade taxes is still common. Regulations on conditions for beneficiaries of social housing policies and land investment procedures for social housing development still have shortcomings...
According to the delegates, the reason for these shortcomings and limitations is due to the forecasting of the market situation and the ability to assess and analyze legal regulations of the staff is not comprehensive. The real estate structure is not suitable, there are no unified regulations on the land ratio for building social housing and luxury apartments. The implementation of monitoring, declaring prices when notarizing and actual real estate transaction prices is very difficult.
From the above reality, delegate Duong Khac Mai suggested: “It is necessary to continue to effectively implement the group of institutional solutions in the coming time. Continue to review, amend and perfect related laws such as the Land Law, Housing Law, Real Estate Business Law, etc. Build a public and accessible real estate market information system so that people can clearly understand land prices, in order to limit speculation and price inflation. Along with that, the delegate suggested assigning the Ministry of Construction to advise on the issuance of mechanisms and policies to strictly manage investors of social housing projects; at the same time, coordinate to assess and review difficulties and obstacles in preferential credit policies for social housing”.
Source: https://vov.vn/chinh-tri/gia-bat-dong-san-cao-bat-thuong-do-nguoi-mua-bat-dong-san-de-tich-luy-tang-cao-post1131459.vov
Comment (0)