An apartment complex near the centre of Bình Chánh Distrcit, HCM City. — VNA/VNS Photo

The real estate market in many areas has recently witnessed rapid price increases, with the Ministry of Construction (MoC) identifying multiple factors impacting land and housing prices and the overall real estate market.

In response, the ministry has proposed nine solutions to reduce housing prices and stabilise the real estate market.

The MoC proposes to effectively implement recently issued policies and laws related to the real estate sector, including the 2024 Land Law, the 2023 Housing Law, the 2023 Real Estate Business Law, the 2024 Credit Institutions Law and other detailed regulations.

In addition, the Ministry suggests effectively implementing tasks and solutions that have been directed by the Government and the Prime Minister to remove obstacles and promote the sustainable development of the real estate market.

One of these solutions is to effectively carry out Directive No. 82/CĐ-TTg, issued by the Prime Minister, which calls for timely corrections to the land-use rights auction process.

The MoC also proposes researching potential improvements to land-use rights auction regulations to ensure they align with practical conditions.

Potential improvements to these rules include increasing deposit amounts, setting starting auction prices based on the actual market situation in the area, shortening the payment period for winning bids and limiting the participation of those who aim to speculate.

Notably, the Ministry suggests looking into a policy to tax individuals who own or use multiple houses and land plots in order to curb speculation and the rapid buying and reselling of properties for profit.

Another proposed solution is to limit the negative impact of the land price valuation announced under the 2024 Land Law on land, housing prices and the supply and demand in the real estate market.

The Ministry also suggests that competent authorities consider piloting a State-managed model of real estate and land use transactions. This would aim to curb potential market disruptions caused by collusion among real estate trading platforms and brokers.

Inspections and audits should also be conducted more effectively, according to the Ministry.

There is a need to review the organisation of land-use rights auctions, project bidding and the implementation of real estate projects and business activities.

This would allow for timely detection and strict handling of violations according to legal authority and regulations.

Along with these solutions, the Ministry also proposes strengthening the inspection, supervision and effective management of real estate business activities, real estate exchanges and brokerage services.

Efforts to publicise, disseminate and educate the public on legal matters related to land, housing and real estate business activities also should be promoted, according to the MoC. — VNS