There have been recent suggestions to cool down the property market by implementing tax policies on real estate. Among these, the Ministry of Construction has proposed a tax on multiple property ownership to curb speculation and short-term flipping for profit.
This proposal comes amid soaring property prices in major cities, particularly Hanoi and Ho Chi Minh City.
Hanoi has seen continuous strong growth in apartment prices. Photo: M. Chien
At a press conference for the third quarter of 2024 on September 27, Deputy Minister of Finance Nguyen Duc Chi expressed agreement with this proposal. He emphasized that they will take it on board and study and improve tax policies related to real estate.
According to Deputy Minister Nguyen Chi, the competent authority has directed that the development of the real estate market must ensure openness, transparency, and sustainability. In the context of the real estate market in general and house and land prices, in particular, tax policies alone cannot meet the requirements for market development, and other synchronized policies are needed, such as land and planning.
Deputy Minister Nguyen Duc Chi affirmed that the Ministry of Finance will study financial policies on land and the real estate market to contribute to the development of a transparent, stable, and sustainable market.
“When issuing policies, we need to consider the comprehensive perspective to avoid affecting other objectives while achieving one goal,” the Deputy Minister of Finance emphasized.
In a recent report to the Government Office on the reasons for the increase in real estate prices, the Ministry of Construction said it would study and propose tax policies on multiple property ownership to curb speculation and short-term flipping for profit. The agency also proposed that the Ministry of Finance jointly study and advise on tax policies for second homes or vacant and unused properties.
According to the Ministry of Construction’s report, in Hanoi, apartment prices in some projects or individual houses in districts such as Tay Ho, Hai Ba Trung, Ba Dinh, and Hoai Duc have also increased unusually compared to the market situation and people’s needs.
The Ministry’s report for the second quarter showed that apartment prices increased by about 5-6.5% compared to the first three months. The sharp increase of 28-33% was seen in some old projects that have been operating for many years. Some resettlement areas also saw a 20% year-on-year increase. Some new apartment projects launched in Hanoi recently are priced at VND55 million per square meter.
However, the Ministry of Construction assessed that the strong increase in apartment prices only occurred in a short period and showed signs of cooling down at the end of the second quarter. This is explained by the fact that apartment and separate house transactions decreased by 30% compared to the beginning of the year due to high base prices and buyers’ wait-and-see attitude.
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