The primary goal of imposing property tax is to increase budget revenue, regulate supply and demand, make the use of real estate more efficient, and ultimately help lower real estate prices. Real estate prices Real estate prices that are either too high or too low are not beneficial to the economy. However, these prices are primarily driven by market supply and demand. Unlike in developed countries, where demand for real estate is declining due to an aging population and a surplus of quality housing built over the decades, Vietnam is grappling with an acute housing shortage. In Vietnam’s case, rising real estate prices result largely from supply constraints. The number of new housing projects has significantly dwindled in recent years due to strict regulations. In a normal market, high real estate prices would lead to a pickup in selling and an influx of investment, which would increase supply and reduce prices. But this has not happened. One reason is that homes must be built on residential land while land prices have surged, and development procedures remain slow, expensive, and complicated, limiting housing supply, for both intentional and unintentional reasons. Real estate is a vast, highly competitive sector involving thousands of […]
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