Combating Rumor-Mongering and Price Manipulation in the Real Estate Sector
The Ministry of Construction has issued a document to the People’s Committees of provinces and centrally-run cities regarding the enhancement of management and control over the volatile real estate market.
According to the Ministry, while many localities have proactively implemented legal provisions related to real estate trading, investment, land, and housing, the real estate market remains unstable and prone to risks. Certain organizations, individuals, and enterprises have violated regulations, including rumor-mongering and frequent reselling of real estate to manipulate prices.
Land auction in the outskirts of Hanoi has recently seen winning bids multiple times higher than the starting price.
In the second quarter of 2024, the supply of commercial housing slightly increased compared to the previous quarter. Transactions of apartments and detached houses decreased compared to the first quarter of 2024, while land transactions showed an upward trend. Real estate transaction prices also tended to increase compared to the previous quarter.
However, the development of the real estate market has not been truly sustainable, and there are still risks. In some localities, there have been cases of investors and real estate brokers spreading rumors, reselling properties, and manipulating information to drive up prices for profit.
Notably, in Hanoi, apartment prices in some projects and detached houses in some areas, such as Tay Ho, Hai Ba Trung, Ba Dinh, and Hoai Duc, have surged unreasonably compared to the market situation and the people’s demand.
Recently, some land auction cases in Hanoi, where winning bids were multiple times higher than the starting price, have attracted public attention. This has impacted the socio-economic development and the healthy growth of the real estate market.
To fulfill its state management function regarding the real estate market, the Ministry of Construction requested the People’s Committees of provinces and centrally-run cities to strictly implement the Prime Minister’s Official Dispatch No. 82/CD-TTg dated August 21, 2024; Resolution No. 33/NQ-CP dated March 11, 2023, on solutions to remove obstacles and promote the safe, healthy, and sustainable development of the real estate market; Official Dispatch No. 1767/CD-TTg dated December 21, 2021, on the situation of land auction implementation in the past time; and other directives and dispatches of the Prime Minister.
Additionally, they should inspect and review the business activities of real estate enterprises, investors, real estate exchanges, and brokers in their localities. They should also control the frequent reselling of real estates, especially in areas and projects where there are abnormal price increases. Inspections and examinations should be conducted to rectify price manipulation and speculation and handle violations of land, real estate business, and related laws and regulations according to their competence.
It is necessary to inspect, grasp the situation, and clarify the causes of price fluctuations for each type of real estate, such as apartments, detached houses, and land, in the past period. Proactive proposals for regulatory measures to ensure a stable, healthy, and sustainable market development should be made.
Rectifying Hand-to-Hand Trading and Price Manipulation
Localities should also instruct competent agencies and units to review the organization of land auction activities to ensure compliance with the law, transparency, and publicity. Timely detection and strict handling of violations in land auction activities are crucial to prevent land auction exploitation for profit and market disruption.
The Ministry of Construction rectifies hand-to-hand trading of real estate multiple times and “price manipulation” that distorts the market.
Management and control of real estate price increases should be implemented to ensure alignment with the actual conditions of the areas and avoid negative impacts on real estate investment and business activities. This will help guarantee housing for all citizens.
Measures to manage the construction of houses by residents in land business projects with technical infrastructure in the form of land subdivision and plot sales according to the law should be implemented to prevent land speculation, hand-to-hand trading, and price manipulation that distorts the real estate market information.
Furthermore, information about the real estate market should be publicly disclosed. This includes information on housing development programs and plans, land use planning, infrastructure investment, local administrative mergers, establishments, and upgrades, approved real estate projects, and eligible investors allowed to mobilize capital according to regulations. This ensures transparency, prevents fraud and deception in real estate business activities, and provides a healthy environment for the real estate market.
It is essential to strengthen the propagation, dissemination, and education of laws and new policies related to land, housing, and real estate business laws to relevant organizations and individuals. At the same time, the competent authorities should seriously and effectively implement the legal provisions related to the real estate field.
Official Agent Signing for Lamina – Long Khanh Commercial Townhouses
The signing ceremony for the partnership and distribution of Lamina Long Khanh commercial townhouses between the investor and Phu Hoang Land Development, along with F1 agencies, took place at the impressive Phu Hoang Land Building.
“Eurowindow Holdings Reports Six-Month Profit Quadruples, Liabilities Exceed Equity”
Eurowindow Holding, a member of the prestigious Eurowindow Group, has announced impressive financial results for the first half of 2024. The company reported a remarkable after-tax profit of 96.6 billion VND, more than quadrupling its earnings from the same period last year. This achievement is even more impressive considering Eurowindow Holding’s payable debt, which has increased to over 8.8 trillion VND, surpassing its owner’s equity by 1.1 times.
The Lottery Winner’s Dilemma: Why the Lucky Winner of the Thanh Oai Land Lottery Backed Out
The successful bidder, who won the auction with a bid of over 100 million VND per square meter of land, has not made the payment, despite the deadline having passed, according to the Thanh Oai District Land Development Center (Hanoi).
The Ministry of Construction Flags Unusual Property Price Hikes in Hanoi’s Real Estate ‘Hotspots’
The Hanoi apartment market has seen an unusual surge in prices, with certain projects and individual properties in districts such as Tay Ho, Hai Ba Trung, Ba Dinh, and Hoai Duc experiencing a significant hike. This anomaly has caught the attention of the Ministry of Construction, who have noted that these prices are out of step with the broader market and the needs of the local population.
The Vice Prime Minister Meets with Leading Hong Kong Conglomerates.
On the afternoon of September 10, immediately upon arriving in Hong Kong, China, to attend the 9th Belt and Road Summit at the invitation of the Chief Executive of the Hong Kong Special Administrative Region, Mr. John Lee, Vietnam’s Permanent Deputy Prime Minister, Mr. Nguyen Hoa Binh, met with leaders of several of Hong Kong’s foremost business groups, which have significant cooperative investments in Vietnam.
