Social, rental housing prices must be regulated: PM

Social, rental housing prices must be regulated: PM

Prime Minister Lê Minh Hưng has stressed the need to regulate prices of social and rental housing so that it's affordable for beneficiaries of social policies and low-income individuals.

Prime Minister Lê Minh Hưng speaks at a National Assembly group discussion about the draft amendments to the Law on Property Auction in Hà Nội on Monday. — Photo baochinhphu.vn

Prime Minister Lê Minh Hưng on Monday emphasised that the ultimate goal of the proposed  land and property law amendments is to regulate the prices of social and rental housing and ensure that low-income individuals can secure affordable housing.

He was speaking at a group discussion among National Assembly deputies about draft amendments to the Law on Property Auction in Hà Nội, part of the 16th NA's second session.

The Government leader, who is also an NA deputy reprensenting Hải Phòng City, commendted on the draft law and the process of reviewing and consulting on it.

There were several conflicting views on the draft, especially regarding its scope of application and the provisions on the selection of auction organisations, bidding participation, deposit requirements, as well as those on online auctions, cancellation of auction results and the protection of buyers, Hưng said.

He stressed the need for a thorough review of the draft since auctions and land allocation are directly linked to other legislation, such as the laws on land, housing and real estate business.

"Since the Land Law mandates auctions or competitive bidding for certain cases, the procedures stipulated under the Law on Property Auction and the Law on Bidding must be fully aligned," he said.

Any existing loopholes or ambiguities must be addressed to ensure the law is practical and ca be effectively implemented, because it will influence how the law's guiding decrees are written and interpreted.

PM Hưng also added that the primary objective of the amendments is to effectively manage and control prices within the social and rental housing segments of the real estate market so that beneficiaries of social policies, low-income individuals and ordinary citizens can access housing.

"We must manage and regulate these segments; we cannot allow unreasonable price hikes in segments that require oversight," the PM said.

"Market demand will dictate prices in high-end segments catering to those with greater financial means, but we must definitely regulate prices for social housing and rental housing."

Earlier, while summarising key amendments to the property auction law, Minister of Justice Hoàng Thanh Tùng said that the proposed amendments aim to address existing shortcomings in property auction activities, while enhancing the effectiveness and efficiency of State management in this sector to meet new requirements.

The draft includes a provision stipulating that any auction participant who has submitted a valid application, paid the required deposit, and attended the auction session shall be deemed to have agreed to bid at least the starting price.

This measure is intended to curb 'shill bidders', who participate in auctions without any genuine intent to purchase, solely to seek illicit profit.

The draft amendments also provide for a simplified, expedited auction procedure for certain assets, specifically those with low starting prices or requiring rapid disposal, and introduce provisions for conducting auctions online via an online auction system for certain types of assets. 

Bizhub