HCMC – Prime Minister Pham Minh Chinh has ordered stricter measures to tackle price manipulation and speculation in the real estate market, including potential criminal investigations into violations.
The directive, specified in Official Notice No. 03/CD-TTg issued on January 15, calls for law enforcement to address fraudulent activities in land-use auctions and the dissemination of false information aimed at inflating property prices.
In recent years, the Government has introduced policies to stabilize the real estate sector, accelerate housing projects, and address land management issues. However, speculative practices and misinformation have continued to inflate property values, straining affordability for average citizens, according to the directive.
“Speculative groups and individuals are taking advantage of limited public knowledge and herd mentality to manipulate prices and disrupt the market,” the notice said.
A lack of affordable housing, including social housing and low-cost commercial units, has contributed to price surges. Some developers have exploited supply constraints to sell properties at prices significantly above market averages.
Irregularities in land-use auctions, including unusually high winning bids, have further distorted market prices, creating financial challenges for prospective buyers.
The prime minister urged ministries and local authorities to enforce stricter regulations, improve transparency in market data, and ensure fair pricing mechanisms.
The Ministry of Construction, the Ministry of Natural Resources and Environment, and relevant departments have been tasked with developing a proposal for a state-managed real estate and land-use transaction platform by mid-2025. The platform aims to increase transparency and digitize real estate transactions, improving oversight and public access to reliable data.
The Government also plans to connect real estate data with national databases on population, notarization, and taxation. The integrated system is expected to enhance monitoring and prevent tax evasion in property transactions.
Authorities, including the Ministry of Public Security, have been directed to investigate and prosecute criminal activities, particularly those involving fraudulent auctions and false information.
The directive further called for new tax policies to curb speculative behavior. The Ministry of Finance has been told to submit proposals by April 2025, including taxes on price differences from multiple property transactions.
The directive urged the State Bank of Vietnam to tighten supervision of real estate loans to prevent inflated valuations and mitigate risks. Local governments have been instructed to publish timely information on housing and land-use plans to improve transparency and ensure public access to market data.
