The Ministry of Justice believes that taxing based on ownership time is not feasible; Hanoi apartment prices are stagnant and unlikely to decrease significantly; Ho Chi Minh City has stopped checking the current status when issuing land and house certificates... are the latest real estate news.
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| Currently, personal income tax from real estate transfers in Vietnam is applied at a fixed rate of 2% on the transaction value, regardless of ownership period. (Source: DN&TT) |
Ministry of Justice speaks out about high taxes on real estate 'surfing'
According to the Ministry of Justice, taxing real estate based on ownership period is not feasible due to the lack of uniformity in the tax and land management system, and further research is needed. Comments from the Ministry of Justice on the proposal to develop a draft Law on Personal Income Tax (replacement).
In the draft submission to the Government, the Ministry of Finance proposed that “it is possible to study and implement tax collection on personal income (PIT) from real estate transfer based on the holding period as experienced by some countries. The specific tax rate needs to be studied and determined appropriately, reflecting the actual operation of the real estate market”. This proposal aims to institutionalize policies and orientations, to have a reasonable level of regulation, avoiding speculation and real estate bubbles.
The Ministry of Justice commented that specific tax rates need to be researched and determined appropriately to reflect the actual operation of the real estate market.
To implement this policy, it is necessary to synchronize with the process of perfecting policies related to land and housing as well as the synchronization and readiness of information technology infrastructure for land and real estate registration.
Therefore, the Ministry believes that the solution of collecting taxes based on holding time is not feasible, so it recommends that the Ministry of Finance continue to research and perfect the policy before applying it to ensure effectiveness and feasibility.
Currently, personal income tax from real estate transfers in Vietnam is applied at a fixed rate of 2% on the transaction value, regardless of ownership period.
In September 2024, in an official dispatch sent to the Government Office reporting on real estate prices, the Ministry of Construction said it would study and propose a tax policy for those who own and use multiple houses and lands to limit speculation and short-term buying and selling for profit. The proposal was made in the context of real estate and housing prices continuously increasing sharply since the beginning of the year.
Market stagnates, prices unlikely to fall deeply
The Law on Land, Real Estate Business, and Housing has been implemented for 6 months. Assessing the impact of the above laws on the real estate market, Mr. Le Van Binh - Deputy Director of the Department of Land (Ministry of Natural Resources and Environment) - said that it is too early. Time is needed for the law to permeate into products.
At the seminar "Real Estate in 2025 - Finding opportunities in challenges" organized by Dan Viet newspaper on February 11, Mr. Binh commented that real estate prices have "increased dramatically" recently.
In particular, from the end of 2023 to 2024, prices will continue to increase sharply. New apartments under 50 million VND/m2 have almost disappeared, many old apartments that have been in operation for many years are also priced at more than 70 million VND/m2. Even in old collective housing areas, prices have increased 1.5-2 times, making it very difficult for ordinary workers to access housing. People with 3-4 billion VND in hand still find it difficult to find a suitable place to live.
This not only makes it difficult for low- and middle-income earners to own a home, but also reduces the sustainability of the market.
Analyzing this price increase, Mr. Binh said that it is not only due to lack of supply but also market psychology that has a big impact.
“Like news about land auctions, just the news that land auctions here and there are high will greatly affect the psychology that those who do not buy quickly will lose their share. Or even though the actual supply has not yet been released to the market, just having figures about the supply will increase, the price may not increase anymore,” Mr. Binh said. When a new price range is established, the supply increases, the market begins to slow down.
“In the near future, real estate products will be launched, along with policies being issued, the real estate market as well as prices will be more stable. At this time, workers can access to buy houses. The psychology of investors will also be calmer,” said Mr. Binh.
Mr. Nguyen Van Dinh, Vice President of Vietnam Real Estate Association, President of Vietnam Real Estate Brokers Association, also said that real estate prices in 2025 will tend to be adjusted more reasonably compared to the excessive increase compared to 2024.
However, according to this person, a deep reduction will be difficult to happen because some issues such as land prices, land price lists, and costs are showing signs of creating input pressure on the cost of real estate products.
“Both real demand and investment demand will tend to increase in 2025. Regarding transactions, I think they will increase better in 2025 because of better supply factors, more stable segments, and especially prices will be adjusted and maintained at a good level, leading to an increase in transactions. Overall, the market will be more active than in 2024. Market supply and demand indicators have improved but cannot return to the levels of 2018-2019,” Mr. Dinh assessed.
Regarding opportunities for real estate investors in 2025, Mr. Nguyen Van Dinh assessed that currently in the core urban area, housing prices are too high. This expert recommends that people should look for new urban areas with good infrastructure and traffic routes.
Hanoi apartment prices remain stable
The Hanoi apartment market after the Lunar New Year 2025 has not recorded any notable fluctuations in asking prices. In general, apartment asking prices are still stable compared to the time before Tet. This is in complete contrast to last year, when after Tet, Hanoi apartment asking prices continuously fluctuated - starting a period of continuous price increases in 2024.
A survey by Batdongsan.com.vn after Tet recorded that the selling price of apartments in many projects did not fluctuate compared to before Tet. Specifically, at the An Binh Palza project (Nam Tu Liem), the selling price of 2-bedroom, 1-bathroom apartments with a 50-year ownership period still fluctuated from 3.3 to 3.5 billion VND/apartment. With the same area, the selling price of long-term ownership apartments is still at 4.3 to 4.4 billion VND/apartment. The line of 3-bedroom apartments with long-term ownership with an area of over 80m2 is still offered for 6 to 6.2 billion VND/apartment, the line of 3-bedroom apartments with a 50-year ownership period is still at around 5 billion VND/apartment.
Similarly, at the FLC Complex project, located on Pham Hung Street (Nam Tu Liem District), the selling price of apartments after Tet has not changed significantly. Apartments over 50m2 are still priced from 3.9-4.2 billion VND/apartment. Apartments over 70m2 are still priced at 5.2-5.5 billion VND/apartment before Tet.
Also in Nam Tu Liem district, 2-bedroom, 2-bathroom apartments at the Golden Palace project are still maintaining the asking price from the end of 2024 at 4.6-4.7 billion VND/apartment. The Garden Hill project still has a price of 4.5-4.7 billion VND for 2-bedroom, 2-bathroom apartments.
At the Golden Field project, the selling price of a 2-bedroom, 2-bathroom apartment generally remains at the previous common price level of about 4.7 billion VND/apartment. However, in this project, there are about 2-3 apartments on the market that the owners need to sell urgently, so they accept to reduce to 4.5-4.6 billion VND/apartment.
In Thanh Xuan district, the selling price of Hanoi Center Point apartments with 2 bedrooms and 2 bathrooms is still the same as before Tet with the common selling price being 5.7-5.8 billion VND/apartment.
Apartments at the Gold Season project (Thanh Xuan) still maintain a price range of 8 billion VND for 3-bedroom products and around 6 billion VND for 2-bedroom products. The same price range is also happening with apartment projects in Cau Giay district such as HomeCity, Central Field, Discovery Complex, etc.
According to a survey by Batdongsan.com.vn with brokers and trading floors, the group of customers buying real estate are still waiting to see how prices will change after Tet.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, commented that in 2025, apartment prices will hardly tend to go down. The reason is that the new primary supply present in the market in 2025 will focus mainly on the high-end and luxury segments in large urban areas. That is why apartment prices will continue to be "anchored" high. The supply from social housing projects is likely to increase in 2025 but will still be extremely small compared to people's needs. The supply of low-cost commercial housing is still extremely scarce. Therefore, the apartment price level will hardly tend to go down, only maintaining a horizontal level.
Ho Chi Minh City eliminates status checks when issuing land and house certificates
The People's Committee of Ho Chi Minh City has just issued a decision to amend and supplement a number of articles of the Regulations on coordination in construction order management (referred to as the Construction Management Regulations) in the city.
The regulations on construction order management in Ho Chi Minh City were issued with the decision on April 1, 2024. In which, Clause 1, Article 10 stipulates the responsibilities of the Department of Natural Resources and Environment (TN-MT), the City Land Registration Office and its affiliated branches as follows:
“In the process of handling procedures related to the certification of assets attached to land, in case of checking the current status of houses or construction works according to the provisions of land law, if violations of construction order are detected, the dossier shall be transferred to the competent authority for inspection and handling according to the provisions of law”.
In the recently issued decision, the Ho Chi Minh City People's Committee amended it to: "In the process of handling procedures related to the certification of assets attached to land, if any violations of construction order are detected, a written notice must be sent to the competent authority for inspection and handling according to the provisions of law."
The above amendment means that the Department of Natural Resources and Environment, the City Land Registration Office and its affiliated branches no longer have the duty to check the current status of houses or construction works when issuing certificates.
The revised and supplemented decision has removed the responsibility of Ho Chi Minh City Police in directing district-level police to strengthen inspections and promptly detect construction works violating construction order in the area under their management for advice on handling.
In addition, the new regulation also removes the responsibility of the Department of Planning and Investment in coordinating with the district-level People's Committee to request enterprises to re-register their business registration certificates according to the decision to handle administrative violations when declaring dishonest or inaccurate registration contents.
Regarding the responsibility for drawing up administrative violation records and advising on administrative sanctions, the new regulation removes the phrase "within 2 working days from the date of drawing up the administrative violation record".
Source: https://baoquocte.vn/bat-dong-san-thi-truong-chung-lai-nguoi-mua-nghe-ngong-bo-tu-phap-noi-gi-ve-de-xuat-danh-thue-cao-voi-luot-song-nha-dat-304357.html
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