Ho Chi Minh City Tackles Property Speculation
HCM City People’s Committee has asked the police to find real estate investors who are spreading false information and responsible for overly-high property prices in the city.
The city people’s committee sent a directive document to related agencies on September 19 on how to deal with private housing and land speculation. The Department of Construction was asked to work with the Department of Natural Resources and Environment, investors and localities authorities to publicise information about real estate and infrastructure projects.
The police were asked to investigate the spreading false real estate information to increase project values. Any difficulties should be reported to the HCM City People’s Committee for help as soon as possible.
According to the HCM City People’s Committee, many individuals and small investors have hoarded private houses and plots of land in order to resell them for profits. False information was spread out and caused the real estate prices to skyrocket.
In May, the Housing and Real Estate Market Management Agency also pointed out that property speculation had increased prices across Vietnam. The investors often find ways to inflate real estate prices in locations that will have new urban area or economic zone projects.
They often bought several plots of lands when prices were still low and spread the information that the real estate in those areas boomed to attract other investors and customers. As the result, investors sold the land almost immediately afterwards but those who were slow would be in difficulty. Customers with real housing demand can’t afford the houses and investors are unable to sell products to break even.
The Housing and Real Estate Market Management Agency suggested that the Ministry of Construction should ask city and provincial authorities to review and inspect their real estate markets. Measures must be taken to control the situation to avoid a real estate bubble.