The Real Estate Market Manipulation: How Ho Chi Minh City is Tackling the Issue

Chairman of the Ho Chi Minh City People’s Committee, Mr. Phan Van Mai, has issued a directive to focus on rectifying and addressing price manipulation and real estate speculation, as well as inspecting and examining real estate investment projects.

Accordingly, the Chairman has instructed heads of departments, sectors, and the Chairman of Thu Duc City and district People’s Committees to urgently implement the Prime Minister’s directives in Government Telegram No. 03/CD-TTg regarding rectifying and handling price manipulation and real estate speculation and inspecting real estate investment projects.

At the same time, they are tasked with disseminating and promoting legal awareness, as well as organizing the implementation of new legal policies related to the real estate market.

In addition, it is crucial to continue implementing effectively the tasks and solutions directed by the Government and the Prime Minister in resolutions, directives, decisions, and telegrams related to unblocking and promoting the safe, healthy, and sustainable development of the real estate market.

Units are required to enhance communication and transparency by proactively and comprehensively disclosing accurate and timely information related to housing and the real estate market. They must also strengthen control and effectively censor social media channels that may provide inaccurate or unofficial information, potentially impacting the psychology of the people, investors, customers, and the market.

The Chairman of the Ho Chi Minh City People’s Committee has assigned the Inspectorate of Ho Chi Minh City and the Department of Construction to intensify inspections, examinations, and reviews of real estate business activities conducted by enterprises, investors, real estate exchanges, and brokers in the city. Special attention should be given to areas and projects with abnormal price increases to promptly rectify, prevent, and strictly handle violations according to their competence and legal provisions.

Emphasis should be placed on the legality, conditions, and transparency of real estate information in cases of abnormal price increases, preventing profiteering and market disruption.

Simultaneously, the Inspectorate and the Department of Construction must tightly control the issuance of real estate brokerage practice certificates and monitor the operations of real estate exchanges and enterprises providing real estate brokerage services. This ensures the transparency and professionalism of these activities, preventing uncontrolled situations that may cause market instability.

The Department of Natural Resources and Environment has been assigned to take the lead, in coordination with relevant units, in reviewing land price determination, issuing land price frames, conducting compensation, site clearance, and land use right auctions… to promptly report, propose, and present to the Ho Chi Minh City People’s Committee for rectification, prevention, and strict handling of violations, especially taking advantage of land use right auctions for profiteering and market disruption.

The Chairman of the Ho Chi Minh City People’s Committee has also assigned the Ho Chi Minh City Police to proactively detect and strictly handle, in accordance with regulations, organizations and individuals who violate the law to the extent of criminal liability in the work of land use right auctions.

The Department of Construction, Department of Natural Resources and Environment, Department of Planning and Architecture, Department of Planning and Investment, Thu Duc City People’s Committee, and district People’s Committees are responsible for timely disclosing information about housing and the real estate market. They must also make public notices of real estate eligible for trading; housing development programs and plans; land use planning and plans; urban and rural planning; and urban development programs… ensuring transparency.

At the same time, they should expedite administrative procedures in the construction and investment of housing and real estate projects, such as investment policy approval, project appraisal, land use purpose conversion, land price determination, and land use fee calculation…

Ending Real Estate Speculation

The People’s Committee of Dong Nai Province has recently issued a document guiding the enhancement of management and control over fluctuations in real estate prices. Accordingly, the Department of Construction has been assigned to coordinate with relevant units to inspect the real estate business activities of enterprises, investors, exchanges, and brokers. Any violations of the law will be handled according to their competence.

Dong Nai Province will particularly focus on managing and inspecting construction in projects that divide land into residential lots for sale, preventing situations where people leave the land vacant, speculate, buy and sell by hand, and inflate prices, causing market information confusion. At the same time, by disclosing information about the real estate market, the province aims to increase transparency and prevent fraudulent and deceptive acts.

The Department of Construction of Dong Nai Province will also coordinate with the Provincial Police, Department of Natural Resources and Environment, and Department of Finance to inspect the organization of land use right auctions, ensuring compliance with the law, transparency, and publicity. Timely detection and handling of violations in auctions, as well as preventing land use right auctions for profiteering and market disruption, are crucial.