Vietnam PM orders appraisal of tax insurance policies to curb belongings hypothesis

The Ministry of Finance needs to study tax policies to curb property speculation in line with Vietnam’s socio-economic conditions and international practices, Prime Minister Pham Minh Chinh has requested.

PM Chinh made his demand in a dispatch amid abrupt surges in home prices in major cities over the past months.

Specifically, the Prime Minister suggested imposing taxes on the price differences between land use fees and selling prices of real estate products, as well as taxing differences between transactions. The potential policies must be submitted to the prime minister by April 30.

Chinh also ordered the Ministry of Construction and relevant ministries to propose a pilot state-managed center for exchange of real estate and land use rights. The proposal should be submitted to the government by the second quarter.

In addition, the Ministry of Public Security and local authorities have been tasked with inspecting real estate activities by developers and firms, particularly in areas and projects experiencing abnormal price increases.

The PM also asked local administrations to expedite administrative procedures for housing projects, tighten control over the licensing of real estate brokerage certificates, and enhance oversight of brokers’ operations.

According to the Vietnam Association of Realtors (VARS), home prices in Vietnam have recorded an average annual double-digit growth over the past decade. Affordable apartments, priced under VND25 million ($982) per sqm, have become virtually “extinct” in the market in recent years.

Vietnam’s housing market recorded nearly 81,000 units up for sale in 2024, with 70% dominated by apartments, a VARS report said. 65% of newly-launched apartments are classified as high-end, priced at over VND50 million ($1,964) per sqm.

Apartment prices in Hanoi, the central city of Danang, and the southern metropolis of Ho Chi Minh City surged by 72.4%, 49.9%, and 34.3% from 2019, respectively.