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|Ministries cook up solutions to curb wild land hikes (source: dantri/ D. Quan)|
One of the top proposals involves fines for circulating fake or inaccurate news in the market. There are currently regulations on forcing such fines on speculation activities in Article 196 of the 2015 Criminal Code, but a more detailed guideline must be mapped to help local authorities ensure better implementation, the ministries say.
Another solution is to limit speculation in the market. Proposals are to increase the transference taxation in the first 2-3 years after an asset was transferred. Also, additional taxation is suggested to impose on the second asset and more of every owner and land plot left unused over a certain period of time.
Commercial banks under the instruction of the State Bank of Vietnam are to set up special solutions to provide loans in the context of land fever. Bankers must carefully consider and approve loans in projects with enough dossiers only. Hospitality and high-end residences are the segments deemed to require careful actions by bankers.
Last but not least, local authorities are requested to have more transparent use of information. Every local authority must publicise their land-use plan every year in order to reduce rumours and false news. Information databases on land and homes must be digitalised to give easier access to local people and buyers.
At the end of March, the Ministry of Natural Resources and Environment (MoNRE) requested local provinces to send a report on land fever in their localities to the ministry before May 31. Those figures from local authorities will be combined to set up a database system to serve for following guidelines in the future.
The MoNRE has requested local authorities to enhance their management on the real estate market, especially for future property under the construction stage.
“Local authorities must review all projects and ensure that property on sale must have the correct permission. All transaction activities also must be approved by the competent bodies,” read a document from the MoNRE.
Especially, individual brokerage activities must be strictly managed because a major reason for the increasing price of land plots in localities comes from individual and private brokers.
Local authorities were also assigned to officially declare all zoning plans of the locality in local People’s Committee offices, to avoid being utilised by inaccurate news on real estate construction.
The MoNRE has further requested local authorities to focus on land plot management in the context of price hikes continuing in recent months. Many investors had bought agricultural land areas, divided them into small land plots, and then put the plots on sale with prices increasing many times over. This activity, while illegal, continues to trap buyers.
Along with this, local authorities are requested to create more land fund for residential development by putting land up for auction.
Meanwhile, the Ministry of Construction (MoC) was also assigned by the government to review the new land lease price framework implementation.
After the government issued Decree No.96/2019/ND-CP at the end of 2019 on the land price framework, local people’s committees issued a price range to apply to the period of 2020-2024.
Accordingly, the land price issued by localities has an average increase of about 15-20 per cent compared to the land price list five years ago.
According to a report from the MoC, in 2020 and the first three months of 2021, real estate prices increased from 10 to 30 per cent compared to the beginning of 2020. On the black market, price of land plots transferred by individuals and private brokers increased from 50 to 100 per cent, depending on the locality.