(CLO) Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management, said: The management and implementation of land use rights auctions in some areas and localities are not good, there is a phenomenon of many investors forming associations and groups to participate in auctions.
Almost through 2024, Vietnamese real estate still faces many difficulties
At the Forum on Sustainable Development of the Real Estate Market held on November 27, Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management, Ministry of Construction said: Although the real estate market in 2024 still faced many difficulties, towards the end of the year it showed a positive recovery thanks to the stability of the economy and the Government's support policies.
In particular, the Housing Law 2023, the Real Estate Business Law 2023 and the Land Law 2024 officially take effect from August 1, 2024, 5 months earlier than the previous regulations, contributing to perfecting the legal corridor for the real estate market and opening a new cycle for the market in a safer, healthier and more sustainable direction.
However, there are still local price fluctuations in some segments and some regions.
Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management, Ministry of Construction. (Photo: CP)
Mr. Hoang Hai analyzed: Real estate prices increased partly due to recent fluctuations in land-related costs as well as the impact of applying new calculation methods and land price tables.
Especially in some localities and areas, there is a phenomenon of land use rights auctions with winning bids many times higher than the starting price.
“The management and implementation of land use rights auctions in some areas and localities are not good. There is a phenomenon of many investors forming associations and groups to participate in auctions; paying land prices many times higher than the starting price, and then possibly “abandoning the deposit” after winning the land auction with the aim of establishing a virtual price level in the area to make a profit,” said Mr. Hai.
According to the Director, the phenomenon of "creating virtual prices" and "inflating prices" by speculators and individuals working as real estate brokers; taking advantage of people's lack of knowledge and investing according to the crowd psychology for profit.
These are individuals who operate as freelance brokers, do not have real estate brokerage certificates, are weak in expertise, have limited legal knowledge, lack professionalism, and are weak in business ethics, leading to opportunistic business practices, colluding to raise prices, inflating prices compared to actual values, manipulating the market, causing damage to customers, and reducing the transparency of the real estate market.
In addition, the market is also facing a shortage of real estate and housing supply to meet the needs of the majority of people, low-income and middle-income earners in urban areas, especially Hanoi and Ho Chi Minh City.
The reason is that real estate businesses encounter difficulties and problems in legal procedures, especially in determining land prices, calculating land use fees, site clearance, and land allocation.
Many businesses have encountered difficulties in credit loans and capital from issuing corporate bonds; Many projects that have been and are under construction recently have had to be temporarily suspended, have their progress delayed, and have been slow to progress.
“Although the Land Law 2024, Housing Law 2023, and Real Estate Business Law 2023 have been issued and come into effect, there are still some limitations because it takes time for the newly issued mechanisms, policies, and laws to be effectively implemented and put into practice,” said Mr. Hai.
Investors are requested to fully disclose information about real estate.
Faced with this situation, Mr. Hai suggested that real estate businesses focus on researching and effectively implementing newly issued mechanisms, policies and laws, such as: Land Law 2024, Housing Law 2023, Real Estate Business Law 2023, Law on Credit Institutions 2024... and detailed regulations.
Enterprises and large investors also need to ensure compliance with regulations on real estate business conditions; fully, honestly and accurately disclose information about real estate and real estate projects put into business. At the same time, enterprises need to proactively review and reduce costs, actively apply modern technology in construction to reduce product costs in accordance with the actual market situation, in the spirit of "harmonizing benefits and sharing difficulties".
Overview of the forum. (Photo: VV)
Enterprises should also proactively review their investment portfolios and product structures, and restructure their businesses to ensure they are consistent with their financial capacity and management capabilities, and avoid spreading investments.
In addition, it is necessary to proactively resolve difficulties and problems of enterprises and projects regarding legality and capital sources; review and restructure capital sources; be responsible for focusing all resources on handling bad debts and due debts to create the basis and conditions for accessing credit sources, bonds, securities, etc. to implement the project.
Source: https://www.congluan.vn/bo-xay-dung-viec-quan-ly-thuc-hien-dau-gia-dat-tai-mot-so-dia-phuong-chua-tot-post323113.html
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