When being asked to evaluate the current property market from reports submitted by provinces and municipalities to the Construction Ministry regarding real estate bubbles. Chairman Bui Xuan Dung first informed that land fevers have developed since the end of the first quarter of 2021, but then died out when the Government, the Construction Ministry, and the Natural Resources & Environment Ministry all released instruction documents for the localities to issue timely warnings to the public, along with publicizing precise planning information, land prices.
Despite this, the land prices in Hanoi, Ho Chi Minh City, Da Nang City, Binh Duong Province continue to witness instability due to bustling buying activities of land speculators and investors. Some of them then divide the land into smaller lots for sale to earn profit, even using illegal methods.
Discussing the current legal corridor to control the situation when land brokers purposely perform various tricks to push up land prices, the Chairman shared that the real estate market is governed by several law systems of housing, land, real estate trading, planning, and tax. They are quite sufficient and synchronous to ensure the healthy and transparent state of real estate transactions.
For instance, the Real Estate Trading Law regulates specific scopes, participation conditions, rights, and responsibilities of individuals and organizations working in this field. However, inadequacies in this market still exist, asking for effective solutions to better control it and ensure a sustainable growth.
Explaining potential solutions and tolls to control the real estate market as well as particular responsibilities of the localities, related state agencies and ministries, Chairman Dung shared that the Construction Ministry has already submitted to the Government for approval of Decree No.16/2022/ND-CP about administration punishments for law breaking activities in construction, supplementation and amendments to sanctions for violations in real estate trading and broker operations.
In the near future, the ministry will continue to complete the legal system related to this matter. It is also necessary to synchronously adopt many practical solutions like checking and adjusting property-related regulations, unexpectedly inspect real estate brokers, be individual or organization, to ensure law observation.
More importantly, localities must focus on addressing issues related to legal matters or investment preparation procedures for real estate and commercial housing projects. Heavy punishments must be imposed on law breakers.
The last tool is timely updates of local planning on the formal Vietnam Construction and Urban Planning Portal. Right now, there are 1,572 planning pieces on the site, which is rather slow to satisfy the public needs and requires immediate rectification from the Construction Ministry. This is because of a lack of human resources, finance. In addition, many local authorities like the provinces of Hoa Binh, Phu Tho, Hai Duong, and Gia Lai still do not pay sufficient attention to uploading these essential information pieces onto the site.
