Newly constructed Dai Thanh Residential Complex in Thanh Tri district, Hanoi. (Photo: VNA) “The realestate market is closely related to the financial market. Recently, thefinancial market has been growing quickly and the real estate markethas also seen strong development. Therefore, the ministrybelieves regulations are necessary for the healthy development of capitalmobilised from bond issuance activities," Khoi said.
The ministryhas proposed amending Decision 153/2020 with the goal of managingcorporate bond issuance activities to avoid the property bond marketoverheating.
Khoi saidthat the State Bank of Vietnam and the Ministry of Finance are in charge of themanagement and control of bond issuance activities. Meanwhile, the Ministry of Constructionis to propose solutions to manage bond issuance activities of realestate enterprises.
“In thepast, there were some real estate enterprises that issued bonds to exceed thetarget, causing the financial market to develop quickly. The Minister ofConstruction also reported this issue to the National Assembly, and proposedsolutions to improve the health of the real estate market, including strictlycontrolling the issuance of bonds by real estate enterprises, especiallyindividual bonds," Khoi said.
Likebusinesses in other sectors, real estate enterprises have mobilised capital toimplement projects via many channels such as issuing bonds, building jointventures to contribute capital, and borrowing credit from banks or corecapital.
However, mostdomestic real estate enterprises do not have much core capital and depend onloans from banks. After the State Bank tightly controlled capital for thereal estate market, businesses had to switch to issuing bonds. Therefore,to develop the domestic real estate market in a more healthy andsustainable direction, it is necessary to control and adjust capital flowinginto this field.
“Therefore,MoC proposes prioritising capital for projects that can provide a fastsupply of housing to the market. The ministry expects that capital willcontinue to be poured into the real estate market, but it is necessary to haveregulations for more effective using of the capital," Khoi was quoted assaying by “Phap luat Tp. HCM” (HCM City Law) online.
At the pressconference, Deputy Minister of Construction Le Quang Hung said: "Thegeneral policy is to never restrict capital into the real estate sector, butonly control and direct capital inflows in feasible projects to promote theefficiency of the capital and meet practical housing needs of people."
For propertytax, a MoC representative said that the Ministry of Finance has just proposedcollecting this tax. MoC would study this issue and providerecommendations with the goal of controlling housing prices. That willhelp the market become more healthy and sustainable.
“However,imposing tax on real estate assets is a huge issue relating to many fields,especially with a direct impact on people who own real estate. Therefore, it needsto be studied carefully," Hung said.
The MoCrepresentative also said that the proposal on imposing tax on property has notyet been officially studied. The National Assembly's law- and ordinance-makingprogrammes have not yet focused on this proposal.
MoC alsoreported at present, housing prices have shown signs of cooling down, butare still at a high level compared to the same period in 2021 and the endof 2021.
TheDepartment of Housing and Real Estate Market Management believes that the realestate market in 2021 witnessed unusual development.
Housingprices in many places increased rapidly, especially land plots in suburbandistricts that are developed to be urban districts, or projects withinformation about planning. In some areas, the price increased by 15 percentfor apartment buildings and 30 percent for individual houses.
The highprice increase in the real estate market was due to the limited supply ofhouses, the source of credit in the real estate sector, and lack of marketinformation. Therefore, the ministry has requested localities to managethe market, especially disclosing information about planning in a timelymanner./.
VNA
