Amending tax policies related to the real estate market will be among solutions to prevent speculative trading in an effort to stabilise land and housing prices, the Ministry of Construction said at a press conference on Thursday.

The ministry said that speculation is a major cause for the recent skyrocketing price increases in housing in major cities, specifically Hà Nội.

Statistics showed that price of apartments in major cities, including Hà Nội and HCM City, increased by 5-6.5 per cent in the second quarter and 25 per cent annually. Prices of villas and townhouses are also on upward trend.

Deputy Minister of Construction Nguyễn Việt Hùng said that it is necessary to have synchronous fiscal, land and credit policies to promote the sustainable development of the real estate market.

Deputy Director of the Housing and Real Estate Management Department Vương Duy Dũng, said that specifically related to Hà Nội, there are a number of reasons for the increases in housing prices, including rising input costs.

Supply improved in the third quarter but remains limited, coupled with speculation which is distorting the market, pushing prices ever upward. There is also psychology involved with investors pouring money into the real estate market, while other investment channels are considered unfavourable.

The ministry will increase the enforcement of the laws on land, housing and real estate business to move difficulties for the real estate market.

In addition, efforts will be made to tackle land auctioning, with tightening of the management on the operation of property developers and trading platforms.

Tax policies will be revised for amendments to prevent speculation, he said, urging careful assessment of proposed new tax policies, including imposing taxes on people owning more than one property. — VNS