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  Policy & Strategy

Govt takes action to control estate market

A new urban area in Cau Giay is under construction

The Prime Minister has issued a resolution on real estate to help create a healthier property market that benefits the people and the State.

The May 19 resolution said there were still many shortcomings in the market despite several positive changes made in recent years.

"The poor management of public land and housing, the inefficient co-ordination of relevant State bodies, and the failure to fully understand the real estate market’s role and position in the market economy have caused big losses in rent and taxes for the State," the resolution said.

The resolution also dealt with other problems arising from the current management system, including the illegal transfer of property, violations of urban development plans and the false demand for land and housing created by speculators.

"The property market must be exploited for the benefit of the country’s industrialisation and modernisation targets, by attracting investment for social and technical infrastructure, and real estate projects."

Necessary measures

The resolution made the first mention of the need for an effective legal system to allow a healthy and competitive real estate market to develop and to minimise the intervention of the State.

"The relevant laws to be built include those on real estate business and registration, housing, taxes on land use and property."

It also called for more effort in issuing documents guiding the execution of the laws on land and construction and amendments to current legal documents on real estate issues.

The State Bank was assigned to work with the Justice Ministry and other relevant agencies to improve credit policy, especially the terms on loans and payment by instalments, to meet the demand for loans in the fast-growing sector.

The resolution suggested measures to diversify real estate trading transactions in a bid to stabilise prices and help poor households improve their housing conditions.

It asked the State Bank and other relevant State bodies to also seek investment capital from official development assistance programmes and international credit funds for the property market.

"Land-use rights trading floors" and "real estate trading centres" should be established in major cities to create favourable conditions for property market transactions, the resolution said.

"Their foundation should go together with efforts to develop real estate consultancy, brokerage and insurance agencies."

Information about the sale and transfer of State-owned real estate must be made public to prevent graft and speculation.

The resolution instructed provincial and district People’s Committees to quicken the process of issuing land-use rights certificates to facilitate real estate purchases.

The Ministries of Construction, and Natural Resources and the Environment were asked to work with city and provincial People’s Committees to simplify the procedures for granting housing ownership certificates, and work out master plans for housing construction in urban centres as well as highways and other development projects in rural regions.

The resolution asked the Ministry of Finance to review and monitor public land and housing funds, and retrieve land plots and housing used incorrectly or ineffectively for other lucrative purposes.

VNS - (26/05/2004)

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