To prevent real estate price inflation, National Assembly deputies propose increasing deposit prices for each auction round

The above proposal was made by Delegate Duong Van Phuoc (Quang Nam Delegation) at the discussion this morning (October 28) within the framework of the 8th Session of the 15th National Assembly on the topic of supervising the implementation of policies and laws on real estate market management and social housing development from 2015 to the end of 2023.

Mr. Phuoc is concerned that the current land auction activities are not practical and are at risk of becoming a tool for manipulation, and the trading market becomes a place for profiteering. To overcome the situation of deposit abandonment and profiteering in the real estate market, Mr. Phuoc proposes a solution to increase the deposit price in each round, in a linear manner to force bidders to consider when abandoning their deposits.

Debating this proposal of delegate Duong Van Phuoc, delegate Hoang Van Cuong (Hanoi Delegation) said that it is impossible to increase the deposit because "if it is increased, it will limit the number of participants and lose competitiveness".

According to Mr. Cuong, to prevent price inflation and deposit abandonment after bidding, it is necessary to issue a regulation that auction participants must prove that they have enough money to buy if they win the auction, by confirming their bank deposit account or other collateral such as real estate and must commit that if they intentionally abandon their deposit, the above assets will be frozen for handling.

At the same time, it is necessary to publicize the people who put down deposits when auctioning land to limit profiteering, "if there is such a regulation, those who have a real need to buy will easily prove it". At the same time, it will eliminate those who do not have a need to use, participate in the auction to buy and resell or those who intentionally bid high and then put down deposits like recently.

Delegate Nguyen Thi Thuy (Bac Kan delegation) recalled the suburban auctions held overnight, recording hundreds and thousands of people accepting to eat and sleep to bid for land. The winning price was a record high, even in a suburban district, but still reached more than 100 million VND/m2, equivalent to land in projects with invested infrastructure.

According to the female delegate, the leader of the Ministry of Construction once confirmed that speculation, price inflation, and price hikes are the main causes of the recent high real estate prices. Reality also shows this, when some speculative groups and investors use the trick of pushing prices sky high at auctions, then canceling deposits, in order to establish a new price level for the land in the area that they previously bought, earning super profits.

Another reason for the increase in real estate prices is the psychology of buying land and houses waiting for prices to increase. Many people are restless with the news of skyrocketing land prices, even taking out loans to buy land.

"Speculation, price inflation, and price hikes lead to many consequences. People with real needs cannot buy houses, while many people with money are stashing it in land to seek profit," said Ms. Thuy.

Ha Cuong

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