Deputy Minister of Construction: Speculation is the main reason for the high increase in housing prices in Hanoi

Hanoi housing prices increase dramatically in the first 9 months of 2024 - Photo: NAM TRAN

The information was given by the leaders of the Ministry of Construction at the regular press conference for the third quarter of 2024, held on October 17 in Hanoi.

Continue to propose real estate tax to limit speculation and surfing

To stabilize the real estate market, Deputy Minister Nguyen Viet Hung said that there should be solutions to stabilize the psychology of home buyers through communication in the press and media.

"Stabilizing and promoting the sustainable development of the real estate market, so that people with real housing needs can buy houses, has always been the goal of the Ministry and the Government for many years.

However, for the market to develop sustainably, there needs to be synchronous policies on finance, land and credit," Mr. Hung emphasized.

According to Mr. Vuong Duy Dung, Deputy Director of the Department of Housing and Real Estate Market Management, implementing the Prime Minister's telegram, the ministry has recently reported to the Government on solutions to stabilize housing prices.

Explaining the reasons for the increase in housing prices in Hanoi, Mr. Dung said: The recent increase in housing prices in Hanoi has many different reasons. Firstly, input costs, especially land use fees and labor costs, have increased, causing housing prices to increase.

Second, although the real estate supply has improved in the third quarter, the supply is still limited, leading to speculators and brokers stimulating prices, inflating prices, causing chaos and increasing housing prices. Limited supply also pushes up housing prices in the market.

Third, other investment channels are not favorable, so investors choose real estate to invest and accumulate assets. The large cash flow shift into the market also causes housing prices to increase.

In addition, Mr. Dung also said that there are other reasons for the increase in housing prices recently.

To control housing prices, Mr. Dung said the ministry has reported to the Government a number of solutions such as: Continuing to implement the solutions the Government has proposed in the past and in Resolution 33 on removing difficulties for the real estate market.

Effectively implement the three laws on land, housing, real estate business and guiding documents to remove difficulties for the market.

Adjust and rectify land auction activities, have stable solutions when issuing land price lists, avoid negative impacts on the market.

Manage real estate business activities of investors and real estate trading floors, aiming at real estate transactions through floors under state management to avoid price inflation and price manipulation.

Research and amend tax policies related to the real estate market, limit speculation and short-term real estate trading. The recent real estate speculation has also affected market prices.

"This solution (real estate tax) is also agreed upon by the Ministry of Finance and relevant ministries to study and issue tax policies for real estate," Mr. Dung added.

However, according to Mr. Dung, the imposition of taxes on real estate must be carefully, thoroughly, and comprehensively assessed for the impact of this solution because this is a new policy.

Assess the impact on subjects affected by real estate tax policies, including businesses, people, sellers, and buyers.

Furthermore, the policy must be consistent with international practices and avoid negative impacts on real estate transactions.

Deputy Minister Nguyen Viet Hung (sitting in the middle) said that speculation is the main reason for rising housing prices - Photo: BAO NGOC

The government will issue bonds for people to borrow to buy social housing.

Regarding the proposal to add a credit package of 30,000 billion VND for social housing development, with more incentives for home buyers, Mr. Dung informed: To implement the project of 1 million social housing units, the Ministry of Construction and other ministries have deployed many solutions to implement it.

Including the implementation of a credit package of 120,000 billion VND for social housing development. This package is implemented in the spirit of banks proactively balancing, the budget does not support so short-term loan interest incentives are given, 3 years for investors, 5 years for buyers.

This package does not guarantee enough incentives for low-income home buyers and industrial park workers.

Therefore, to increase incentives, the Government is assigning the Ministry of Construction to study a VND30,000 billion loan package for social housing purchases, including VND15,000 billion in government bonds and VND15,000 billion from local budgets to support low-income people and workers to buy social housing. Thereby, helping low-income people to access cheap capital to buy houses.

According to Mr. Dung, the 30,000 billion VND credit package must be implemented in accordance with other laws. The Ministry of Construction is working with the Ministry of Finance and the State Bank to soon implement this credit package.

Sharing this view, Deputy Minister Nguyen Viet Hung emphasized: "The core of the social housing development policy is exemption of land use fees and preferential credit.

Preferential credit not only supports investors in building houses, but also helps low-income people access cheap loans to buy houses."

Source: https://tuoitre.vn/thu-truong-bo-xay-dung-dau-co-la-nguyen-nhan-chinh-day-gia-nha-ha-noi-tang-cao-20241017122356448.htm