Enhancing Oversight of Real Estate Prices

The Ministry of Construction (MOC) has communicated with local government bodies to improve oversight of fluctuations in real estate prices.

According to the MOC, there has been a slight increase in the availability of housing options during the second quarter, compared to the first.

While the number of apartment and standalone home transactions has dropped compared to the previous quarter, there has been an uptick in land transactions.

Transaction prices in the second quarter have exhibited a significant rise, but the Ministry of Finance (MOF) cautioned that the real estate market remains unstable. It has been observed that various individuals and companies have violated existing laws.

Reports indicate that some investors and brokers are allegedly spreading misleading information about price increases, engaging in buying and reselling activities to artificially inflate prices for profit.

Particularly in districts like Tay Ho, Hai Ba Trung, Ba Dinh, and Hoai Duc, the prices of certain apartment projects and standalone homes have risen unexpectedly.

Land prices have seen a considerable spike as well. In some districts, auction prices significantly exceeded initial bids, impacting both economic growth and the integrity of the property market.

For instance, during a land auction in Thanh Oai district’s Thanh Cao commune, final bids ranged from VND63-100 million per square meter, representing a 5-8 fold increase over starting prices.

In Dan Phuong district, a recent land auction revealed a peak bid of VND99.2 million per square meter across 85 plots.

Another auction in Tien Yen commune, Hoai Duc district, held from 9 AM on August 19 to 4:30 AM the next day, recorded a staggering highest bid of VND133.3 million per square meter—18 times higher than the initial price of VND7.3 million.

The MOC has instructed local authorities to implement strategies that promote a healthy real estate market. They are tasked with ensuring that land auctions comply with legal standards.

Furthermore, local governments are encouraged to monitor real estate transactions that occur frequently over short durations.