Limit manipulation of the real estate market: How?

From the end of 2021 until now, the state of “fever” has taken place on a large scale. In many areas, even though there are no infrastructure investment projects or new information on planning…, land prices still increase exponentially.

TOO MUCH BEHAVIORS THAT CAUSES MARKET turbulence

According to the Vietnam Real Estate Brokers Association, one of the reasons leading to this situation is that many individuals or groups of people have had the act of collecting land, dividing lots and then “blowing” prices, creating virtual fever, to sell to eat “the difference”, causing market turmoil.

In some places, land of unknown origin, garden land, agricultural land… is also subdivided and sold. Many brokers also directly or abet the project owners, defrauding customers with “ghost projects”, with false information. Thereby, causing consequences for consumers, affecting the reputation of the brand of genuine investors. It also destabilizes the real estate market.

Facing this situation, recently, many local authorities, including Hanoi, have issued a document to suspend the settlement of procedures for parcel division for agricultural land, land parcels including residential land and agricultural land. non-agricultural land without residential land…

“This will contribute to preventing the rampant gathering of mixed land and then subdividing and selling it against the intended use. I think that after a series of strong moves by the provincial authorities, land transactions may be halted. But this is essential. Because if the land plot market develops in a rampant and arbitrary direction for speculation and profiteering, it will not bring any benefits to the development of the locality and the housing market, but also contribute to the situation in the country. “land fever”, “virtual price fever”, said Mr. Nguyen Chi Thanh, Standing Vice Chairman of Vietnam Real Estate Brokers Association.

Also talking about the policy of suspending the distribution of lots by localities, Mr. Pham Anh Khoi, CEO of FINA Financial Company, assessed: these are policies that bring more positivity to the market. Especially, it will make an important contribution to prevent the situation of subdivision of plots for sale without planning, contrary to government regulations, increasing real estate speculation and affecting the market. When these activities are stopped, it will bring benefits and limit risks for the market and for buyers.

In addition, this policy was issued also contributed to restrain the increase in real estate prices due to speculation. “In fact, in highly speculative markets, land prices have already dropped. For example, in Binh Phuoc or other places where a virtual fever appears, “fever” is fast but stops very quickly. As for places where there is a basis to increase prices: investing in infrastructure, attracting people to live in many places, etc., the trend of price increase will continue but will not increase dramatically,” said Mr. Khoi.

Sharing the same opinion, Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, analyzed that the rampant division of plots for sale of plots is creating a large amount of illegal real estate goods on the market due to circumvention of the law. must have official project approved planning, approved investment project. Thereby causing many consequences such as: confusing the market, increasing land prices, hindering official investment activities, causing difficulties in planning management in localities. Therefore, it is very important to prevent this situation.

IMPROVING “BACKGROUND SELL Plot” into the planning only

According to the Vice Chairman of the Vietnam Real Estate Association, in fact, many localities with sudden land fever including: Phu Quoc, Van Don, Van Phong have applied similar policies to prevent activities that cause chaos. market turmoil. Now, some localities, seeing the risk of a real estate bubble, also apply this solution.

But this is only a temporary solution, solving the immediate problem but not solving the instability in the market. Moreover, this application is contradictory, even contrary to some current legal regulations. For example, according to the Land Law, for land lots that have a red book, they are allowed to divide, separate and are allowed to trade.

However, with this regulation, it is also necessary to review the policy of planning and land management. Obviously, if a plot of land is sold to many people, then many houses are built to live in, it will certainly put pressure on the infrastructure of that area. Thus, even if the subdivision is to serve real needs, with such fragmented housing development, it will also create asynchronous infrastructure, and at the same time disrupt the planning, causing difficulties. for centralized management of land … in the locality,” added Mr. Dinh.

Therefore, according to the leader of the Real Estate Association, in the long term, there should be specific and clearer legal regulations on this issue, especially in planning work. It can be seen that the planning progress in the localities is currently slow. While the master plan is the basis to determine whether the subdivision of plots for sale in that area should or should not.

Many real estate experts also believe that it is necessary to consider including the division and sale of agricultural and forestry land into the Land Law (amended), in order to have a solid legal basis for the authorities and local government can manage and plan land in a reasonable and stable manner.

According to VnEconomy