According to Notice No. 294 recently issued by the Government Office, summarizing conclusions from a cabinet meeting on the real estate market, authorities are to urgently identify and clarify the factors driving up property prices, including land costs, raw materials, and loan interest rates. Ministries and local governments are tasked with developing immediate plans to reduce these cost components, enhance access to housing, and expand supply.

The Government emphasized cutting administrative procedures that are overlapping or unnecessary. All requirements for complex paperwork must be removed, aiming to reduce administrative processing time and compliance costs by at least 30%. Authorities were also instructed to review and streamline processes related to investment approvals, project assessments, and design appraisals.

Additionally, the Government called for the immediate repeal or revision of any technical standards or regulations that are inappropriate, inconsistent, or unnecessarily costly - such as those governing urban planning, parking spaces, and fire prevention.

Authorities are also to introduce policies that support real homebuyers, especially young people, to improve access to affordable housing. The Government warned of stricter enforcement against organizations or individuals who exploit auctions to inflate land prices, obstructing the development of the real estate market.

Land clearance regulations must be realistic, with projects offering diverse segments to meet various consumer needs. Lower costs and greater supply are key to expanding housing options.

Severe punishment for those enabling price manipulation

In terms of urban planning, the Government directed that central locations be prioritized for long-term production, business, and service developments. Residential projects must be accompanied by adequate technical and social infrastructure. Speculation, price hikes, and the spread of false information aimed at manipulating the market for personal gain will be prosecuted rigorously.

The Ministry of Construction has been assigned to review existing issues in the Housing Law, Land Law, and Real Estate Business Law, and to propose amendments to minimize unnecessary administrative burdens.

Efforts will be accelerated to complete urban planning and create land banks, especially for social housing projects in urban and industrial areas. The Government also directed a synchronized development strategy for newly developing areas along expressways and major infrastructure projects.

Notably, the Government has instructed the development of a “Real Estate and Land Use Rights Exchange Center” under state management.

This center would function similarly to a stock exchange, where real estate transactions and related procedures - such as notarization, tax payments, and land registration - are handled electronically, ensuring transparency and preventing tax evasion.

The State Bank of Vietnam was directed to accelerate the disbursement of the VND 120 trillion (approx. USD 4.9 billion) preferential lending program for homebuyers. It is also tasked with exploring new medium-term credit packages with stable interest rates for affordable commercial housing projects.

Furthermore, the Government called for tough action against those abetting price manipulation, warning that such practices distort the market, destabilize real estate values, and harm buyers.

The Vinh