HCM City’s suburban district of Nhà Bè. HCM City authorities are considering a ban on land subdivision for sale in five outlying districts to combat land speculation. — VNA/VNS Photo

HCM CITY - HCM City authorities are considering a ban on land subdivisions for sale in five outlying districts in an effort to combat land speculation amid rising urbansation in these areas.

A draft proposal submitted to the municipal People’s Committee by the Department of Construction stipulates that developers in Bình Chánh, Hóc Môn, Cần Giờ, Củ Chi, and Nhà Bè districts must finalise housing developments before the transfer of land ownership.

The initiative is consistent with the provisions of the revised 2023 Real Estate Business Law, which seeks to prevent illegal construction and ensure compliance with architectural regulations.

Previously, the 2014 law allowed some subdivisions in rural areas, but the new regulations impose tighter controls.

The city had earlier announced plans to expedite the urbanisation of the five outlying districts, aiming to make them urban districts by 2030.

Specifically, Bình Chánh, Nhà Bè, and Hóc Môn are expected to achieve urban status by 2025, while Củ Chi and Cần Giờ are projected to follow by 2030.

These districts have seen significant urban development, including new urban areas and improved infrastructure.

However, experts have cautioned this urbanisation may lead to increased land prices and speculation due to the conversion of agricultural land.

The outlying districts vary in size and population: Hóc Môn has 109 square kilometres and 463,000 residents, along with Bình Chánh (252 square kilometres, 711,000), Nhà Bè (100 square kilometres, 208,000), Củ Chi (435 square kilometres, 468,000), and Cần Giờ (704 square kilometres, 73,000).

In a related effort, Vietnamese authorities are revising tax policies associated with the real estate market to deter speculative trading and stabilise land and housing prices.

The Ministry of Construction has identified speculation as a critical factor contributing to the recent price inflation in major cities such as HCM City and Hanoi, where apartment prices surged by 5-6.5 per cent in the second quarter, and increased by 25 per cent year-over-year.

Experts advocate for cohesive fiscal, land, and credit policies to promote sustainable market development.

The ministry intends to strengthen the enforcement of existing laws and tighten regulations governing land auctions and property developers.

Proposed tax revisions may include levies on individuals possessing multiple properties.

Despite an improvement in supply during the third quarter, limited availability and persistent speculation continue to disrupt the market, with investors increasingly drawn to real estate amidst unfavourable conditions in other sectors.