The government of Vietnam is considering new taxes designed to limit real estate speculation that has been driving up prices.
Vietnam News reports Prime Minister Phạm Minh Chính has asked the Ministry of Finance to draft new policies designed to improve oversight of construction projects while mitigating the rising level of real estate speculation. The proposed tax measures would include a new tax on the gap between land use fees and sale prices.
The prime minister also recommended that the State Bank of Vietnam to tighten credit for speculators to halt the potential of real estate price bubbles and to require banks to provide detailed reports on their real estate loans. The State Bank of Vietnam was also tasked to consider other proposals including lower lending caps, higher equity payment ratios, and increased interest rates for owners of multiple properties. Furthermore, the Ministry of Public Security was asked to strictly enforce land auction regulations.
This new focus on real estate speculation follows reports that speculators caused real estate prices to rise beyond the financial capabilities of many Vietnamese households while creating an imbalance with a surplus of villas and retail properties but a lack of affordable housing, particularly in Hanoi and Ho Chi Minh City.
