HCMC – The Ministry of Finance is reviewing a proposal to impose a second-home tax to enhance transparency and sustainability in the real estate market.
The initiative follows recommendations to curb soaring property prices through tax measures, said Nguyen Duc Chi, deputy minister of Finance, at a press briefing on September 27.
The Ministry of Construction has suggested taxing those owning multiple properties to deter speculation and short-term trading for profit.
With house and land prices surging in major cities like Hanoi and HCMC, there have been growing calls for stricter regulations. According to the Ministry of Finance, while the tax proposal seeks to improve real estate market transparency, it alone will not suffice. Broader reforms, such as updated land and planning policies, are also necessary, Chi noted.
A report from the Ministry of Construction said significant price hikes in Hanoi, where condo prices rose by 5-6.5% in the second quarter compared to the first. Some older projects experienced spikes of up to 33%, and resettlement areas saw a 20% year-on-year increase in price.
Despite these sharp increases, the real estate market has shown signs of cooling, with property transactions dropping by 30% in the second quarter compared to earlier in the year. The Ministry of Construction attributed the decline in sales to high prices and buyers adopting a cautious approach.
In a report to the Government Office, the Ministry of Construction requested collaboration with the Ministry of Finance to develop policies for taxing those owning multiple properties and vacant homes.
