The Ministry of Construction has proposed revising tax policies related to real estate transactions to curb speculation and short-term buying and selling for profit, a suggestion that has received support from the Ministry of Finance.

This information was shared by Vuong Duy Dung, Deputy Director of the Housing and Real Estate Market Management Department (Ministry of Construction), during the ministry’s regular press conference for Q3/2024 held today (October 17).

Speculation driving unrealistic housing prices

The proposed tax policy aims to impose taxes on individuals owning and using multiple houses and plots of land to limit speculation and short-term property trading for profit. This suggestion comes in the context of rapidly rising real estate and housing prices since the beginning of the year.

According to reports compiled from surveys in major cities like Hanoi and Ho Chi Minh City, the Ministry of Construction noted that apartment prices increased by an average of 5-6.5% in Q2 and 25% year-on-year, depending on the area.

Dung shared that the Ministry of Construction has recently submitted a report analyzing housing price structures, price fluctuations, and proposed solutions to stabilize the market. The analysis identified several factors contributing to rising prices, including fluctuations in input costs, particularly land use fees and labor costs.

Notably, despite improvements in the real estate supply in Q3 due to new laws taking effect, the supply remains limited. This shortage has been one of the main drivers behind price volatility in recent months.

In addition, the Ministry of Construction representative stated that speculators and brokers have manipulated the market by inflating prices and distorting information, contributing to the soaring housing prices.

Reflecting on the persistent rise in housing prices in Hanoi, Deputy Minister of Construction Nguyen Viet Hung emphasized that speculation and market psychology also play a role.

"Speculation can push housing prices to unrealistically high levels, especially when combined with the mentality of buying property to wait for price increases. This has been a key factor driving housing prices up in Hanoi recently," the Deputy Minister highlighted.

Taxing multiple property owners, regulating real estate transactions

To stabilize the real estate market and promote healthy development, the Deputy Director of the Housing and Real Estate Market Management Department explained that the Ministry of Construction has proposed several solutions. Among them is the suggestion to revise tax policies related to real estate transactions to discourage speculation and short-term buying and selling for profit.

"This proposal has also received support from the Ministry of Finance and other related agencies. However, it is essential to conduct a comprehensive assessment of the policy’s impact on affected stakeholders. Thorough research is needed to evaluate the full implications for businesses, residents, buyers, and sellers. The goal is to curb speculative behavior while ensuring the policy aligns with international practices and Vietnam’s specific conditions, avoiding negative impacts on the broader market and transaction activities," Dung said.

Additionally, the ministry emphasized the importance of adjusting local land pricing frameworks according to the Land Law 2024 to prevent negative market impacts and ensure the rights of investors and residents.

The ministry also announced plans to strengthen the management of real estate business activities, including those by enterprises, investors, trading floors, and brokers. The goal is to move toward having all real estate transactions pass through platforms under state supervision to ensure transparency in the market.

Deputy Minister Nguyen Viet Hung further emphasized the need for solutions that stabilize consumer sentiment.

“To achieve the goal of stabilizing the real estate market and ensuring sustainable growth, a comprehensive set of solutions must be implemented across land, housing, fiscal, and investment policies,” the Deputy Minister concluded.

Hong Khanh