return icon Vietnamnet.vn

PM wants to reform tax regime to prevent real estate speculation

Prime Minister Pham Minh Chinh has emphasized that the national housing strategy needs to include reasonable social housing development, and the tax regime on land speculators should be adjusted.

{keywords}

 

Adopting a new way of thinking about housing development is an important part of the Notice on the PM’s conclusions after a recent working session with the Ministry of Construction (MOC) .

The Prime Minister said the real estate market has not not been controlled well and is not associated housing development strategy in a harmonious and reasonable way. Housing for the poor and disadvantaged has not received due attention.

Chinh urged a new mindset and reasonable policies to free up huge resources from old apartments and at the same time heighten the awareness and actions of leaders and managers at different levels.

Regarding housing development, the Prime Minister asked the Ministry of Construction to focus on implementing the national housing strategy in the new period based on socio-economic development planning of the country and the country’s regions.

MOC will have to work on a policy on buying and renting housing units and a decentralization mechanism.

The real estate market seriously lacks affordable apartments. A report shows that demand for mid- and high-end apartments priced at VND25 million per square meter or more just accounts for 20-30 percent in urban areas, while demand for affordable housing, priced at below VND25 million per square meter, accounts for 70-80 percent.

However, high-end apartments are in abundance, while social housing and low-cost commercial products for low- and medium-income earners are lacking.

After the last 10 years of implementing national housing development to 2020, social housing is still seriously lacking, with only 5.2 million square meters built, or 41.7 percent of the plan.

Affordable apartments with prices of VND1-2 billion have ‘disappeared’ form the market. According to Savills Vietnam, in Hanoi, the primary house price has been increasing by 5 percent per annum since 2016. The housing prices in some suburban areas has increased by VND50-60 million per square meter.

The housing prices are 20-30 times higher than people’s average income.

The Prime Minister has also pointed out the need to reform the taxation regime related to real estate speculation.

The HCM City Real Estate Association (Horea) has sent a dispatch to the Prime Minister, proposing higher taxes on the behavior of transferring housing and land rights. This would help eliminate speculation by surfing investors, when the market shows signs of a ‘bubble’. 

Hong Khanh

Construction Ministry to cool down real estate market, prioritize affordable housing

Construction Ministry to cool down real estate market, prioritize affordable housing

Minister of Construction Nguyen Thanh Nghi said the ministry will change the policies related to the development of affordable housing by adopting a new mindset.

Listed companies look to tap real estate segment

Listed companies look to tap real estate segment

A series of listed businesses on the stock market have announced plans to expand and tap real estate investment.

MORE NEWS

Experience Hanoi in its autumn glory

Thanks to its geographical location, the Vietnamese capital city of Hanoi witnesses contrastingly different weather conditions during the four seasons of the year.

VIETNAM NEWS HEADLINES DECEMBER 5

HCYU’s 7th National Congress to be held next week

RoK President hosts State-level welcoming ceremony for Vietnamese counterpart

President Nguyen Xuan Phuc was welcomed in Seoul with a 21-gun salute which is given to a foreign head of state during a State-level visit to the Republic of Korea (RoK).

VIETNAM BUSINESS NEWS DECEMBER 5

2022 ASEAN Postal Business Meeting to be held in Binh Dinh

Ministry considering EVN’s proposal for electricity price hikes

The Ministry of Industry and Trade is reviewing Vietnam Electricity's (EVN) proposal to increase electricity prices as rising input cost was weighing on the largest power company with record loss anticipated for this year.

Proper investment needed to develop night-time economy in Vietnam

The night-time economy of major cities in the country has remained underdeveloped due to a lack of proper investment and an absence of a legal framework and policies to promote it, authorities said.

Vietnam's rice exports likely to reach US$3.5 billion this year

Vietnam is anticipated to rake in roughly US$3.5 billion from exporting more than seven million tonnes of rice this year, according to industry insiders.

Local movie to be screened at Australian Vietnamese Film Festival

Vietnamese film "Cô gái từ quá khứ" (Girl from the past) will be introduced at the Australian Vietnamese Film Festival (AVFF) 2022 which is getting underway in Melbourne, Australia.

Auctions for car licence plates to be tested from July 2023

The starting price of a car licence plate put up for auction is VND40 million. The price may increase by increments of VND5 million.

Purpose-led business to drive superior performance

Working and developing a career at an enterprise with a mission towards sustainable development, employees can bring their goals to life.

Vietnam is well-positioned for green hydrogen production

Green hydrogen (GH2) industrial development is a direction for Viet Nam in the energy transition roadmap to achieve the goal of zero carbon emissions by 2050 but challenges remain, experts said.

Vietnamese Ao Dai honoured at Hanoi festival

Young designer Vu Thao Giang introduced a collection of Ao Dai, a traditional long dress of Vietnam, kick-starting the 2022 Hanoi Tourism Ao Dai festival oon December 2.

Entertainment and cultural events of the week (December 5-11)

Upcoming entertainment and cultural events in Vietnam's major cities on December 5-11.

Three belts on the line at 'Fortunes of War' boxing event in Vung Tau

A blockbuster "Fortunes of War" boxing event will bring together Asia's best fighters in 12 bouts, including three title matches, sanctioned by the IBF and WBO on December 10 at The Grand Ho Tram Strip, Ba Ria Vung Tau Province.

Gold items popular with wealthy Vietnamese

Wealthy people in Vietnam are willing to spend money for their villas, ornamental plants and cars.
back_to_top