Vietnamese government to intervene if property prices vary by over 20 percent
Vietnamese government to intervene if property prices vary by over 20 percent
If real estate prices in Vietnam rise or fall by more than 20 percent over a three-month period, authorities must take action to stabilize the market, as outlined in the government’s newly-issued decree.
Land lots in Hanoi. Photo: B.Ngoc / Tuoi Tre |
According to Article 34 of Decree 96, which provides guidelines under the Law on Real Estate Business, the Ministry of Construction is tasked with assessing the market and recommending regulatory measures.
This assessment will be based on factors such as the price index, real estate transactions, and other socioeconomic indicators as directed by the government.
The Ministry of Construction will collaborate with various ministries, agencies, and local authorities to propose necessary measures within 15 days of detecting significant price fluctuations.
The ministry will propose that the government issue measures concerning policies on urban planning, construction, housing, real estate business, urban area and housing development plans, and the structure of real estate products.
The Ministry of Planning and Investment will propose measures related to investment and bidding regulations, while the Ministry of Natural Resources and Environment will focus on identifying solutions concerning land regulations.
The Ministry of Finance will recommend measures related to tax policies, finance, securities, and corporate bonds.
Meanwhile, the State Bank of Vietnam will concentrate on proposing adjustments to credit policies.
The administrations in cities and provinces will review the implementation of real estate projects in their precincts and then put forward specific regulatory measures.
Once the ministries, agencies, and local authorities have proposed their measures, the Ministry of Construction will compile and submit them to the central government for approval.
If these measures require action beyond the government's authority, the Ministry of Construction will escalate the proposals to the National Assembly for consideration.
Since the beginning of this year, Hanoi has been caught in an apartment price frenzy, with property prices in the western, southwestern, and eastern parts of the city soaring.
In some areas, apartments have been listed at VND65-80 million (US$2,589-3,188) per square meter, nearly double the prices from the first half of last year.
A total of 68 land lots in Thanh Oai District were auctioned off at over VND100 million ($3,985) per square meter.
By contrast, similar plots in the center of Thanh Oai District were selling for VND40-50 million ($1,594-1,992) per square meter at the end of 2023.
