Stop “land fever”, squeeze real estate speculation?

“Chaos” the market real estate

As reflected by the newspaper Business Forum, In Hai Phong, the fact that people focus on buying and selling causes real estate prices to be pushed up and increase continuously. Prices increase, people with money continue to invest in real estate as a way to accumulate wealth.

In addition, the explosion of social networks makes a real estate transaction can be shared at the same time on many groups and personal pages with attractive offers and high liquidity. Every day the product price is inched up to a different price, creating a fever.

Land prices in many localities are inflated, even very high, to an unrealistic level. (Illustration image – Photo: Investment Newspaper)

Hai Phong is just one of many localities where land fever takes place. This is just raising prices, investing, simply surfing according to market movements. What is more concerning is that in some other localities, mistakes in land management appeared, such as in Dak Lak province, a ward chairman was dismissed due to mistakes in land management and construction in Dak Lak province. local.

According to the disciplinary decision, Chairman of Thanh Nhat ward of this province had irresponsible behavior in directing the management and use of land; lack of inspection and supervision of construction order, there have been many cases of people illegally building houses on agricultural land but not being handled.

The ward government let speculators arbitrarily pave the way, divide the lot into many small parcels of land, leading to the formation of residential areas on agricultural land.

The hot increase in land prices has caused many people to take risks, build on their own, and then the situation of subdivision and sale of plots is rampant. This not only disturbs the market, but also causes real estate prices to rise too high, making it difficult for people with real needs to buy land.

The above situation is reported Vietnamnet described in a very specific way through the article with the headline “Land price skyrocketed, startled to save 5 years can’t buy a piece of country land”.

The article said that many people go to work far away, after a few years returning to their hometown, they are surprised because the land price has increased so much. Land prices increased from 2 to 5 times, even a few hundred million saved could not buy a piece of land in the alley, let alone the plots of land in urban areas. Some people are bored, it is difficult to buy land and house in the city, but it is not easier to return to the countryside. At this price, I don’t know when I will have a plot of land.

Stop the trick of blowing up land prices

The good news is that the thoughts of the people, who have real needs, not speculation, but have limited financial resources, have reached the government. Because of that, many measures have been recognized from the local government. It’s time to stop the earth rush.

In the face of the problem of land use conversion and land subdivision and sale of plots in contravention of the land law, recently, Hanoi city has requested to suspend the receipt and handling of related administrative procedures. to the division of parcels for agricultural land, land with residential land and agricultural land, non-agricultural land which is not residential land; only receive and settle with guaranteed residential land in accordance with current law.

Previously, Dong Xoai city, Binh Phuoc province also issued an express dispatch to suspend the separation of agricultural land plots. Khanh Hoa province requires strengthening inspection and control of applications for change of purpose of households and individuals, prohibiting permission to change land use purpose for land plots located outside residential areas. now available.

Experts say that the method of plotting and selling plots should only be used in some rural areas in need of residential land for households separated from one household, not market-oriented. As for the permission to subdivide plots and sell plots, causing people to accumulate money in the land, leaving the land intact without building infrastructure for business development, this will only bring about short-term and long-term economic benefits. implicated.

However, the suspension is only a temporary solution, because the current law does not prohibit this activity. Therefore, the long-term solution is that the State needs to develop tax tools to prevent land speculation.

It’s time to stop the earth rush. (Illustration image – Photo: Investment Newspaper)

Squeeze speculation in real estate

According to the sheet Saigon LiberationIn the short term, the above mandatory tax declaration will contribute to limiting the problem of real estate speculation. However, in order to have a radical solution, it is necessary to promulgate laws on property tax and progressive taxation for people who own many real estate. From there, it will tighten speculation in real estate, directing the cash flow into production and business.

Investing in real estate requires capital and this capital can be obtained from banks. However, with the requirements of credit growth control, banks have also made moves to tighten the real estate lending segment to control risks in this field.

Sheet Youth said that while some banks announced “locking the valve” of real estate credit to ensure system safety, many other banks said that they only lend to customers who need to buy a house to live in. Time to say no to real estate speculative loans.

With solutions, even in the immediate future, from the government, as well as from banks, it is hoped that the current state of chaos and fever in the land sector will be overcome. The people, who have a real need for residential land, can find a piece of land that is suitable for their financial ability, instead of having to follow the sky-high prices from the land storks.

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