“Unveiling the Factors Behind Soaring Real Estate Prices”

13 June, 2025

Reducing processing time by 30%

Mr. Tran Van Son, Minister and Head of the Government Office, has just signed Notification No. 294/TB-VPCP conveying the conclusions of the Government’s Standing Committee at the meeting on the real estate market situation.

Accordingly, on May 24, at the Government Headquarters, Prime Minister Pham Minh Chinh chaired the meeting of the Government’s Standing Committee, giving opinions on the real estate market situation. The meeting was attended by Permanent Deputy Prime Minister Nguyen Hoa Binh, Deputy Prime Ministers Tran Hong Ha, Le Thanh Long, Ho Duc Phoc, and Nguyen Chi Dung, as well as leaders of ministries, sectors, and representatives of enterprises operating in the field of real estate and banking.

The real estate market currently has an unbalanced product structure, lacking housing that meets the needs of workers.

After listening to the reports of the Ministry of Construction and the opinions of leaders and representatives of ministries, sectors, agencies, associations, enterprises, and banks at the meeting, the Government’s Standing Committee concluded that the real estate market has made important contributions to the economy, affecting production chains, capital markets, credit, labor, especially housing and social housing for people, which is a social security issue.

According to the report of the Ministry of Construction, in the first months of 2025, the real estate market has seen positive changes, with both supply and real estate transactions increasing compared to the same period in 2024. However, the development of the real estate market is still not commensurate with its potential due to existing obstacles and bottlenecks that hinder the market’s growth, such as an unbalanced product structure and a lack of housing that meets the needs of workers; speculation, manipulation, price gouging, and market monopolization still exist; a lack of transparency in real estate transactions remains an issue…

To promote the healthy development of the real estate market, in line with economic conditions and people’s income, the Government’s Standing Committee requests an urgent and thorough implementation of decentralization and delegation of power in accordance with Conclusion 115-KL/TW of the Politburo. It is necessary to immediately identify the reasons for the increase in real estate prices (land prices, material prices, interest rates…); promptly come up with solutions to reduce the factors driving up real estate prices, increase accessibility to real estate, and boost supply.

Focus on maximizing the reduction of redundant and unnecessary administrative procedures, eliminating complex paperwork requirements, ensuring a reduction of at least 30% in the time taken for administrative procedures and 30% in compliance costs as per the Government’s requirements in Resolution 66/NQ-CP dated March 26, for the implementation of real estate projects. This includes considering the reduction of procedures for investment approval, project appraisal, and design approval, especially construction permits, inspection upon completion, reducing pre-checks, and increasing post-checks.

The Government’s Standing Committee requests a review and reduction of procedures related to investment approval and project and design appraisal.

The Government’s Standing Committee also requests a review and amendment of inconsistent and conflicting standards and norms that increase costs, such as planning, parking space, and fire protection norms. It is necessary to develop support policies for genuine home buyers, increasing people’s access to housing and real estate, thus enabling them to realize their right to housing.

Amending laws to match reality

In terms of specific tasks, the Government’s Standing Committee requests the Ministry of Construction to closely coordinate with the Ministry of Agriculture and Environment to promptly research and review the Laws on Housing and Real Estate Business to identify existing issues and inconsistencies with reality, aiming to meet the expectations for the development of the real estate market. A report should be submitted to the Government and presented to the National Assembly during the break between the two sessions of the 9th meeting to seek permission to develop a resolution of the National Assembly to adjust the provisions of the Laws on Land, Real Estate Business, and Housing to match reality and the needs of the real estate market.

The Ministry of Construction must comprehensively review decrees and circulars related to housing and real estate business to propose amendments through a streamlined process, resolutely cutting down on cumbersome administrative procedures that increase costs and removing regulations that are no longer practical.

At the same time, the Ministry of Construction should closely coordinate with the Ministry of Finance – the standing agency of the Steering Committee 751 to promptly address difficulties and obstacles in real estate projects, facilitating their early investment, completion, and operation.

Notably, the Ministry of Construction is assigned to coordinate with the Ministries of Finance, Agriculture and Environment, Public Security, and other relevant ministries and agencies to research and integrate investment procedures, master plan approval, basic design approval, fire protection… into one procedure to shorten the time for construction investment, integrating them into one decree, and reporting to the Government.

According to the Ministry of Construction, speculation, manipulation, price gouging, and market monopolization still exist.

It is necessary to urgently research and develop a model for the “Center for Real Estate and Land Use Rights Transactions under State Management”. Real estate transactions and procedures, including public transactions, taxes, and land-use registration, should be integrated into an electronic environment similar to the securities transaction model to ensure transparency in assets and transaction prices for management purposes and prevent tax leakage.

The Ministry of Construction should also coordinate with the Ministry of Agriculture and Environment and relevant ministries and agencies to review legal regulations on vacation real estate, condotels, and foreign access to vacation real estate to propose flexible management solutions that match the practical needs of the real estate market development and drive economic growth.

Similarly, the Ministry of Finance is assigned to research and propose the issuance of policies on taxing unused housing and real estate; taxing the difference between the price for calculating land use fees and the selling price of real estate products of projects. In coordination with the Ministry of Construction and relevant ministries, the Ministry of Finance should also work on digital transformation to integrate procedures related to real estate transactions, notarization, taxes, and land-use registration into an electronic environment.

At the same time, the Ministry of Finance should direct commercial banks to focus on lending and disbursement for commercial housing projects with suitable prices, promoting credit growth, and contributing to the goal of 8% growth in 2025; streamline procedures and conditions to facilitate people’s and enterprises’ access to credit while ensuring strict control to prevent corruption and negativity; and research a credit package for young people with housing needs.

Regarding social housing, the Ministry of Construction must develop decrees of the Government and related documents to implement Resolution No. 201/2025/QH15 dated May 29, 2025, of the National Assembly on piloting some mechanisms and policies for the development of social housing, according to the Government’s Plan in Resolution No. 155/NQ-CP. It is necessary to research and propose adjustments to the targets for social housing development for localities according to Decision No. 444/QD-TTg dated February 27, 2025, of the Prime Minister to ensure the completion of the goal of investing in the construction of 100,000 social housing units in 2025.

Duy Quang

– 07:47 13/06/2025