**Vietnam’s Ministry of Construction Proposes Key Solutions for the Real Estate Market**
In its recently published Q2 2025 report on housing and the real estate market, Vietnam’s Ministry of Construction has proposed a series of key solutions, including a property tax.
 Ministry of Construction Supports Tax on Profits from Real Estate Transfers |
The Ministry expressed support for the Ministry of Finance’s policy to tax the difference between land and house transaction prices, believing that this solution will help curb speculation and property price inflation.
Previously, the Ministry of Finance had finalized the draft Law on Personal Income Tax (replacing the current law), seeking opinions from ministries, localities, and related agencies. A notable content in the draft is the Ministry of Finance’s proposal to impose a 20% tax rate on income from real estate transfers, calculated on the profit of each transaction (sale price minus purchase price and related costs).
In cases where the purchase price and costs cannot be determined, the tax will be calculated directly on the sale price according to the holding period. Accordingly, a tax rate of 10% will be applied for holdings of less than two years, 6% for holdings between two and five years, 4% for holdings between five and ten years, and 2% for holdings of more than ten years or for inherited properties. Individuals who inherit property but engage in speculative activities will be taxed as real estate businesses.
Proposal to Study an Unused Real Estate Tax
Additionally, the Ministry of Construction has requested the Ministry of Finance to study and propose policies to tax unused houses and real estate. They also suggested taxing the difference between the price for land use rights and the selling price of real estate projects, as well as the difference between transaction prices to prevent speculation and property price inflation.
The Ministry of Construction has also urged the Ministry of Agriculture and Environment and local authorities to cooperate in digital transformation to integrate procedures for real estate transactions, notarization, taxation, and land transaction registration into an electronic environment. Furthermore, the Ministry of Construction is working to finalize the pilot project for a state-managed Real Estate Trading Center, expected to be established by early 2026.
In its Q2 2025 report on housing and the real estate market, the Ministry of Construction stated that apartment prices in Hanoi, Ho Chi Minh City, and other major cities across the country remained stable compared to the previous quarter. However, both cities recorded the highest prices in almost a decade.
In Hanoi, the average selling price in the second quarter reached VND 80 million per square meter, up 5.6% from the previous quarter (up 33% from the same period last year). Meanwhile, the average apartment price in Ho Chi Minh City was VND 89 million per square meter, with no significant change from the previous quarter (up about 36% from the same period last year).
Secondary prices also increased sharply, especially in areas with developed infrastructure or in projects that had been handed over. The main reasons for this trend include land fund scarcity, high input costs, slow legal procedures, and high expectations from investors…
Van Duan
– 19:56 28/07/2025
The Curious Case of the Second Property Tax Proposal: What Does the Ministry of Finance Have to Say?
The Ministry of Finance is actively engaged in identifying challenges and gaps in the implementation of tax policies related to real estate. They are committed to reporting these findings to the relevant authorities to ensure a seamless and efficient process in the industry.
The Japanese ‘Big Boss’ Partners with Billionaire Pham Nhat Vuong: A Peek into Their Vietnamese Ventures
Nomura Real Estate Strengthens Vietnam Footprint with Vinhomes Partnership.
A strategic MOU between Nomura Real Estate and Vinhomes will see the former bolster its investment in Vietnam’s thriving urban landscape. With a focus on sustainable and innovative development, this partnership is set to elevate the country’s real estate sector.
The Soaring Cost of Housing: A Couple’s 20-Year Sacrifice for a Home of Their Own.
While some essentials remain unchanged, a couple’s 20-year frugal journey highlights the stark reality of skyrocketing property prices.
The cost of real estate, gold, and even a bowl of pho has skyrocketed over the last two decades. In stark contrast, prices for some electronic goods, appliances, and air conditioners have remained stagnant.
The Rising Supply Doesn’t Bring Condo Prices Down to Earth
The local real estate market has been grappling with a land fever and irrational condo prices. Failing to address these issues will lead to dire consequences for the real estate market and society as a whole.
“Not as Vibrant as the 2018-2019 Phase, But the Real Estate Market is Now Experiencing a Strong Price Uptick.”
“It was an honor to have Dr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association, grace us with his presence and insights at the event, ‘Discover the Most Livable Project in Viet Tri City,’ held on November 30, 2024. His expertise and knowledge contributed immensely to the success of the event and enlightened all attendees on the latest trends and developments in the real estate landscape of Viet Tri City and beyond.”
