Prime Minister Pham Minh Chinh signs an official dispatch on strengthening oversight and addressing real estate market manipulation and speculation. (Source: VNA)

Despite the Government’s drastic directions and measures to remove roadblocks in the real estate sector, the market still faces several issues such as limited housing supply, especially affordable housing for middle- and low-income people, high property prices due to speculative activities and market manipulation by certain investor groups and brokers, and insufficient and opaque market information.

To address these challenges, the Government leader ordered ministers, heads of sectors, and the chairpersons of the People’s Committees of centrally-run cities and provinces to effectively carry out related resolutions, directives, decisions and dispatches, ensuring that the market develops in a safe, healthy, and sustainable fashion.

The Minister of Construction was asked to join hands with other ministers to study a pilot state-owned property transaction and land use centre model, aiming to facilitate electronic transactions and enhance market transparency. The construction ministry must work with the Ministry of Public Security to update, complete, and operate the national housing database which is connected to those on population, notarisation, land, and construction.

Besides, the construction ministry will collaborate with the Ministries of Justice, Finance, and Natural Resources and Environment to develop a digital platform that integrate real estate transactions, notarisation, taxation, and land registration to ensure transparency and prevent tax evasion. The work should be reported to the Prime Minister by June 30.

It will also keep close tabs on market developments and work with relevant ministries and local authorities to stabilise prices through adjustments to land use planning, urban-rural development, and housing projects. Special attention will be given to areas experiencing unusual price increases, with strict inspections of real estate businesses, developers, and brokers.

The Ministry of Natural Resources and Environment was asked to monitor land pricing, compensation, site clearance, and land use rights auctions, while working to prevent and mete out strict punishment to any violations, particularly those who take advantages of land-use right auctions for profit and market manipulation.

In a significant move to curb speculation, the Finance Ministry must propose new tax policies by April 30, 2025, with a focus on taxing the difference between land use fees and final property sales prices, as well as implementing taxes on transaction price differences. The ministry will also orchestrate fiscal and monetary policies to unleash capital flow for socio-economic development while accelerating digital transformation in the real estate sector.

The Governor of the State Bank of Vietnam must carefully scrutinise credit institutions providing real estate-backed loans, ensuring objectivity in property valuations and preventing the facilitation of price manipulation. Meanwhile, the Minister of Public Security will handle individuals and organisations that spread false information to create market bubbles or defraud the public.

Meanwhile, the chairpersons of the People’s Committees of centrally-run cities and provinces are in charge of carrying out related policies and regulations while expediting administrative procedures for housing projects. They must ensure transparent disclosure of information about housing projects, urban planning, and land use plans, as well as strictly control real estate brokerage licensing.

Deputy Prime Minister Tran Hong Ha is responsible for overseeing the implementation of the dispatch, addressing emerging issues within his authority, and reporting significant matters to the Prime Minister.