The Ministry of Construction has recently issued a document to the People’s Committees of provinces and centrally-run cities regarding strengthening the management and control of real estate price fluctuations.
Assessing the real estate market in the second quarter, the Ministry of Construction stated that the supply of commercial housing slightly increased compared to the previous quarter.
Regarding transactions in different segments, apartment and detached house sales showed a decreasing trend compared to the first quarter of 2024, while land transactions tended to increase.
Real estate transaction prices tended to increase compared to the previous quarter. However, the Ministry pointed out that the development of the real estate market is not truly sustainable and still contains potential risks; violations of laws and regulations by organizations, individuals, and businesses still occur in some localities.
For example, some investors and real estate brokers spread rumors, buy and sell real estate multiple times, distorting information to push up property prices for profit.
“Notably in Hanoi, there have been unusual increases in apartment prices in some projects and detached houses in some areas such as Tay Ho, Hai Ba Trung, Ba Dinh, and Hoai Duc districts. This has raised concerns among the public and attracted the attention of the media. Recently, some land auction cases in Hanoi have resulted in winning bids that are several times higher than the starting price, affecting the healthy development of the real estate market,” the Ministry of Construction stated.
In Hanoi, apartment prices in some projects and detached houses in certain areas, such as Tay Ho, Hai Ba Trung, Ba Dinh, and Hoai Duc districts, have seen unusual increases compared to the market situation and the needs of the people. Photo: Hong Khanh |
Given this situation, the Ministry of Construction has requested the People’s Committees of localities to implement various tasks to ensure the safe, healthy, and sustainable development of the real estate market. The Ministry has instructed the local authorities to direct relevant agencies and units to review and ensure the legality, transparency, and openness of land auction activities in their respective areas.
At the same time, they must promptly detect and strictly handle violations of land auction regulations, preventing individuals and organizations from taking advantage of land auctions for personal gain and causing market disturbances.
Additionally, measures should be implemented to tightly manage the construction of houses by landowners in projects that have already been sold with technical infrastructure, in the form of plot division and land sale, to avoid landowners leaving the land vacant and engaging in land speculation, hand-to-hand trading, and price manipulation, which can distort market information.
It is also necessary to inspect and review the real estate business activities of enterprises, investors, trading floors, and brokers in the locality.
Notably, the Ministry also requested local authorities to control the hand-to-hand resale of real estate, especially in areas and projects where there are unusual price increases. Through inspections and reviews, corrective measures should be taken to address price manipulation and speculation, and any violations of land, business, and real estate laws and related regulations should be handled according to their authority.
Furthermore, information about the real estate market, planning, and approved projects must be widely publicized to ensure transparency and accuracy, preventing fraud and scams.
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A few months ago, the Ministry of Construction requested the People’s Committee of Hanoi to inspect and review real estate business activities, especially in apartment projects with unusual price increases. This directive from the Ministry of Construction came in response to media reports of unusually high prices for apartments and houses in certain areas and projects, along with instances of price manipulation, speculation, and hoarding. The Ministry of Construction requested the Hanoi People’s Committee to complete and submit a report to the Ministry before April 20th. However, as of now, the results of this inspection and review have not been publicly announced, and Hanoi continues to witness heated land auctions. From the end of July to August, within a month, the real estate market in Hanoi witnessed three land auctions in Dan Phuong, Thanh Oai, and Hoai Duc districts. On July 28th, Dan Phuong district organized an auction for 85 land lots, attracting more than 1,250 participants. The highest winning bid reached 99.2 million VND per square meter. Subsequently, the auction of 68 land lots in Thanh Cao commune, Thanh Oai district, attracted even more attention, with over 4,000 applications and around 1,600 participants. Starting from a reserve price of 8.6-12.5 million VND per square meter, the highest winning bid reached 100.5 million VND per square meter. Following this, the auction of 19 land lots in Long Khuc, Tien Yen commune, Hoai Duc district, received thousands of applications. Notably, this auction lasted from 9 am on August 19th to 4:30 am on August 20th, concluding after 9 rounds. The highest winning bid reached 133.3 million VND per square meter, more than 18 times the starting price of 7.3 million VND. |
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