A draft resolution on mechanisms to control and stabilize real estate prices, currently being reviewed by the Ministry of Construction, focuses on three key solutions: establishing real estate trading centers, implementing lending policies for homebuyers, and developing affordable commercial housing.

Notably, the draft proposes loan limits for buyers of second homes or more (a maximum of 50% of the purchase contract value for the second home and 30% for the third or subsequent homes), aiming to curb speculation and stabilize the market amid persistently high housing prices in major cities that exceed most households’ affordability and disrupt the supply-demand balance.

The Investor spoke with Phan Viet Hoang, general secretary of the Khanh Hoa (province) Real Estate Brokers Association, for his perspective and recommendations on the draft resolution.

How do you view the Ministry of Construction’s proposal for a government resolution dedicated to controlling and stabilizing real estate prices?

Real estate prices have risen abnormally high, in many places far beyond the payment capacity of the majority of people, especially middle- and low-income groups. This is a real and urgent issue in many localities.

To address it, we need a set of synchronized solutions. Among them, the proposal to establish state-managed real estate and land-use rights trading centers and develop affordable commercial housing are two measures that have gained broad public support.

As for real estate credit, I believe the focus should be on monitoring how borrowed funds are used - both by project developers and by individual homebuyers.

The draft proposes loan caps for buyers of second or subsequent homes. What is your assessment of this policy?

In my view, this measure may not effectively reduce speculation. On the contrary, it could push prices higher in central urban areas.

For example, large families wanting to buy more property, or major brands seeking to acquire adjacent units for business premises and brand promotion, would face obstacles in accessing credit.

Instead of tightening credit for second-home purchases, I believe a property tax policy targeting unused or abandoned properties - those that generate no commercial or social value - would be a more suitable and effective approach at this stage.

What do you think about the proposal to establish real estate trading centers to manage and publish prices and transactions? Are they feasiblle?

I strongly support this idea because it can increase transparency, curb speculation, and prevent price manipulation.

However, its success depends on well-structured implementation, modern technology infrastructure, and a professional operating mechanism. Most importantly, it requires a clear legal framework to avoid overlapping with existing functions of other institutions.

These centers should store and publish data on prices, transaction history, and legal status, enabling citizens, businesses, and authorities to access reliable information. In the initial phase, the model could be piloted with urban development projects.

Centralized management will also help authorities monitor supply and demand, pricing, and tax compliance, reducing the practice of under-declaring property values to evade taxes. If these state-run trading centers operate effectively with reasonable service fees, private property owners will likely choose to transact through them.

What do you see as the biggest challenge in developing affordable commercial housing?

The biggest barrier is high input costs, which make developers hesitant to invest in this segment. To address this, the Government should offer tax and credit incentives to attract enterprises.

At the same time, it is essential to allocate land funds for housing development, particularly public land or land reclaimed from state-owned entities after restructuring.

We also need to promote new, flexible housing models suited to regional climates and geographic conditions - not strictly following traditional designs and materials.

From the perspective of the Khanh Hoa real estate market, what recommendations would you make to the construction ministry as it finalizes the draft resolution?

We have three main recommendations. First, all real estate types and projects listed for business under Article 5 of the Real Estate Business Law should be required to transact through state-managed real estate trading centers.

Second, credit institutions should establish clear evaluation criteria for lending to real estate developers, covering factors such as collateral, market segments, and unsold inventory, to ensure credit is used properly and prevent “borrowing new loans to repay old ones.

Third, the Government should provide preferential credit policies for first-time buyers to enhance housing accessibility and stabilize the real estate market.