A new profession has appeared in Vietnam – land price inflator or bidding buyers at land auctions, who artificially push land prices up and then resell the auctioned land at high prices for profit.

If being approved, HCMC will implement new land prices from August 1, with the highest rate reaching VND810 million ($32,000)/sq.m. This adjustment, lasting until the end of the year, affects various key areas, including major streets in District 1.

The prices of land and houses have been leveling off in most localities, according to the Ministry of Construction (MOC).

Since the beginning of the year, the real estate market has seen an uptick in merger and acquisition (M&A) activity, including office, residential, and industrial projects.

Many buyers have become less interested in apartments after hearing that the Ministry of Construction (MOC) has proposed the setting of a cap on the term of apartment ownership. Despite this, apartment prices remain high.

Experts say buying houses now, especially good projects, will help people optimize their credit and price advantages.

Prime Minister Pham Minh Chinh stressed that land needs to be used in the right way to create value and jobs, and that real estate development must not be the priority.

Prof Dang Hung Vo said Vietnam is taking a step forward with the policy that the lives of people whose land is taken back by the state to make room for investment and development projects must be equal or better than they were before.

Prime Minister Pham Minh Chinh, at a conference on the real estate market held recently, affirmed that Vietnam will not tighten real estate credit in an unreasonable or rigid way.

Minister of Construction (MOC) Nguyen Thanh Nghi said real estate prices continue to rise. Very few affordable housing products exist in Hanoi and HCM City.

Deputy Minister of Construction Nguyen Van Sinh has made three important proposals on urban planning that could help prevent false rumors and illegal profiteering, and control the real estate market.

People who rushed to buy real estate during the latest land fever have left the market as prices have decreased.

Since doi moi (renovation) in 1986, the Vietnamese real estate market has witnessed many ups and downs, including four “price fevers” so far.

Real estate prices in transactions rose in the first three months of the year, according to the Ministry of Construction (MOC).

Localities are taking serious measures to control real estate brokerage activities and speculation, as they believe that the activities are behind land price escalation.

Land prices have been escalating not only in large cities but rural areas as well.

To prevent speculation and price inflation, the State needs to apply comprehensive measures to increase the transparency and supply in the market.

Imposing property taxes on houses is not a radical solution to build a healthy market, experts say. Taxation will make the real estate market, which is in difficulties because of legal problems and short supply, become even more deadlocked.

Inflating land prices via auctions is one of the biggest problems of the real estate market. It creates an artificial land fever in the market and deprives people of opportunities to own accommodations.