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NA deputy: Real estate price increases abnormal
Commenting about the heating up of the real estate market, Dr Nguyen Duc Kien, a member of the National Assembly’s Economics Committee, said he can see something abnormal.
Land prices have been skyrocketing in recent days, having generated a new price ground which is 30-40 percent higher than that of earlier this year. What do you think are the reasons?
Land and house prices have been increasing because of the two factors. First, the demand stimulus packages which aim to support real estate businesses have had positive results, making the real estate market bustling again. Second, the demand for land and house from people is tending to increase.
So what would you say about the current development situation in the real estate market?
The demand stimulus packages have made real estate prices increase. However, it is clear that this is contrary to the Government’s policy on social security (building houses for the poor and low-income earners).
We need to clarify if land and house prices are increasing because of speculation, or because of higher construction material price increases which have forced enterprises to push prices up.
So do you mean that there is something abnormal in the real estate price increases at this moment?
Besides the higher demand from people to own apartments and land plots, real estate prices have increased sharply also because of higher construction material prices, including steel, cement and sand.
However, input price increases can only have impacts at moderate levels, while they will not make prices skyrocket so dramatically. It is clear that there is something abnormal. Currently, the State cannot reckon all the demand for land and houses.
A lot of people who have idle capital have been trading land and houses through brokerage centres to make profit, which has also made real estate prices increase. Besides, it could be that many real estate investors in urban areas have made corrupt use of the open policies, including the demand stimulus package, to push prices up.
What attitude do you think people and government agencies should keep now amid the continued real estate price increases?
I think that we need to control the real estate market through tax policies, not by procedures and administrative orders.
Meanwhile, people, when seeking to buy houses through real estate trading floors, need to learn about their rights and benefits and the responsibilities of real estate companies.
VietNamNet, TBKTVN
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