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Preventing virtual land fever: It is necessary to have transparent information on project planning and progress

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Deputy Minister of Construction Nguyen Van Sinh suggested localities focus on completing and approving planning projects, ensuring full legality for projects. At the same time, publicly announcing information about the planning and implementation progress of projects to make information transparent, prevent the spread of rumors, speculation to push prices, to profit from some projects that happened in last time.

Deputy Minister of Construction Nguyen Van Sinh. Photo: VGP

This is the information emphasized by Deputy Minister of Construction Nguyen Van Sinh during the meeting to provide information to a number of press agencies about the situation of land fever, virtual land fever in some localities in recent years.

There are many “risks” in real estate transactions

Deputy Minister Nguyen Van Sinh said that in the first quarter of 2021, the real estate market had many fluctuations, although the volume of real estate transactions under the supervision of the Ministry of Construction, was only about 70% of the transactions in the fourth quarter of 2020.

Real estate prices increased slightly, especially apartments also increased from 5% to 10%. In particular, land prices have had a hot, local phenomenon in some localities across the country such as areas around Hanoi, Quang Ninh, Hai Phong, Bac Ninh, Bac Giang, Hoa Binh, Phu Tho, Ho Chi Minh City, Dong Nai. , Binh Duong, Binh Phuoc, Binh Thuan …

Many people leave their jobs and production to trade land, creating local land fever phenomenon and risks affecting socio-economic development in the area.

It is worrying that many real estate transactions have emerged problems affecting the interests of people, especially real estate transactions with ineligible legal conditions.

“That is a situation that many projects that have not invested in technical infrastructure have real estate transactions; Many transactions took place with forest land, agricultural land, production and business land that has not been used for investment in real estate projects. It can be said that these transactions do not guarantee legal requirements, potential risks for people when investing in real estate in the past time, “Deputy Minister Nguyen Van Sinh warned.

Five causes of land fever – virtual land fever

According to Deputy Minister of Construction Nguyen Van Sinh, in recent years, most localities have been very active in preparing provincial planning according to the provisions of the Law on Planning 2017. At the same time, localities are also interested in the planning investment and development of urban projects, housing projects, and large-scale technical infrastructure projects. Urban upgrading is also happening synchronously.

Deputy Minister Nguyen Van Sinh stated, “The planning and announcement of the local planning has not been made public and transparent for timely orientation for people and businesses, leading to investors and businesses. The real estate has taken advantage of this lack of transparency to push land prices up as in the past “.

Land fever has occurred in some localities in recent years. Photo: VGP

Second, due to the impact of the COVID-19 epidemic, the bank interest rates, including those at commercial banks, are very low. This investment channel is not attractive to people to send money. Therefore, at present, many investors and people with idle money tend to invest in real estate transactions because they think that this transaction is safe, effective and has opportunities for the future.

The third reason, according to Deputy Minister Nguyen Van Sinh, in recent years, the investment in the development of housing, real estate and urban projects has also faced many difficulties, especially legal procedures. Land management, investment and construction are still difficult, leading to a limited supply of real estate.

Next is the investment and development of affordable commercial housing, social housing, for the poor in urban areas as well as workers in industrial zones that have not been given adequate attention by localities. leading to a lack of social housing supply, not meeting the needs and needs of the current people.

Fifth, now some localities have had a policy of increasing land prices according to the roadmap with an increase of 15-20%. Although this land price increase has not affected much real estate transactions today, because real estate transactions have now been allocated land and invested in the past, but the policy of increasing land prices has affected. affecting psychology and the increase in real estate prices in recent times.

Transparency about planning and implementation progress of projects

Deputy Minister Nguyen Van Sinh said that over the past time, the Government and the Prime Minister have focused on directing ministries and localities to drastically step in and take specific solutions to prevent and strictly deal with the phenomenon. virtual land fever in some localities.

Specifically, focus on building and perfecting the legal system related to land, real estate investment, construction and trading to remove difficulties, especially in terms of investment order and procedures.

The Government has submitted and approved by the National Assembly the amended Investment Law, the amended Construction Law, the decrees have also been issued by the Government such as the Decree guiding the Construction Law, the Decree guiding the Investment Law; Amended Decrees related to the Decree on management and development of housing projects and guide the Housing Law and the Decree on social housing development.

Along with that, the Government has also instructed the State Bank of Vietnam to better control credit, especially credit in real estate, to avoid “double risks” in this area.

At the same time, to direct localities to focus on investment in developing social housing, cheap commercial housing to meet the housing needs of people, especially workers in industrial zones.

For localities, Deputy Minister of Construction Nguyen Van Sinh suggested that in the coming time, focus on completing and approving planning projects, paying attention to urban development projects, housing projects. ensure synchronous technical infrastructure, social infrastructure and full legal status for real estate projects, control real estate transactions to ensure demand.

Continuing to make public information about the planning and implementation progress of projects in order to make information transparent, prevent the spread of rumors, speculation to push prices and profit from a number of projects that have occurred. out in the past.

In addition, there should be strict measures to prevent the transfer of land use rights, division of plots, sale of land in some areas that have not yet been allowed to invest. Deputy Minister of Construction Nguyen Van Sinh proposed to manage and control the purchase and sale of real estate transactions many times to better control the increase in land prices, especially through management measures. very good organizations and individuals in real estate transactions and brokerage.

At the same time, it is suggested that localities in the coming time strengthen the inspection, examination and strictly handle cases of real estate investment and trading in contravention of regulations, especially ghost projects, projects are not enough. Legal documents, real estate business conditions.

For real estate businesses, it is necessary to strictly comply with the investment order and procedures, especially the procedures for land allocation and construction investment, so that real estate investment and business projects are fully fully legal, complying with regulations on construction investment in real estate projects.

In the coming time, businesses need to pay attention to invest in real estate and housing projects to ensure synchronous technical infrastructure, social infrastructure, legal status and do business, business transactions. to trade real estate in accordance with law.

Deputy Minister Nguyen Van Sinh also recommended that people and businesses who are interested in the real estate field are very calm, wary of rumors, study and carefully consider legal documents of projects. Real estate transactions and real estate transactions only when there is clear legal documents, in accordance with the provisions of the law.

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