{"id":76147,"date":"2024-10-11T08:23:00","date_gmt":"2024-10-11T01:23:00","guid":{"rendered":"https:\/\/neu.edu.vn\/vnexpress-net-prof-dr-hoang-van-cuong-tax-real-estate-to-curb-housing-and-land-speculation\/"},"modified":"2024-10-11T08:23:00","modified_gmt":"2024-10-11T01:23:00","slug":"vnexpress-net-prof-dr-hoang-van-cuong-tax-real-estate-to-curb-housing-and-land-speculation","status":"publish","type":"post","link":"https:\/\/neu.edu.vn\/en\/vnexpress-net-prof-dr-hoang-van-cuong-tax-real-estate-to-curb-housing-and-land-speculation\/","title":{"rendered":"Vnexpress.net: Prof. Dr. Hoang Van Cuong: Tax Real Estate to Curb Housing and Land Speculation"},"content":{"rendered":"

Prof. Dr. Hoang Van Cuong proposed developing a roadmap to introduce a real estate tax in the next two to three years to curb speculation and protect the interests of the majority of homebuyers.<\/strong><\/p>\n

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Prof. Dr. Hoang Van Cuong, Vice President of National Economics University (NEU), shared this proposal at a seminar on the real estate market on October 10. He said the real estate market had been out of balance since late 2022, with many segments facing difficulties or even becoming “frozen,” while prices remained high.<\/p>\n

New supply did improve in the first nine months of this year, but it consisted entirely of projects that had already begun construction or received approval. Despite the increase in supply, selling prices did not fall and even continued to reach new levels. “When the market is out of balance, speculators benefit the most because they can easily push up prices and profit,” he observed.<\/p>\n

Meanwhile, the 2024 Land Law abolished the old land price framework and requires annual adjustments to land price schedules to bring valuations as close as possible to market prices. According to Cuong, unless speculation and manipulation are controlled, land valuation will face considerable difficulties, directly affecting land users’ rights and interests. This poses numerous risks that could undermine the market’s sustainable development.<\/p>\n

Prof. Dr. Hoang Van Cuong therefore argued that it is necessary to tax second and subsequent properties, as well as properties left unused. This solution offers dual benefits: curbing speculation and ensuring market balance, while encouraging use rather than the wasteful accumulation of houses and land that are then left unused. A real estate tax would also generate substantial budget revenue that could support the development of social and affordable housing for the public.<\/p>\n

However, he cautioned that the timing of the tax requires careful consideration because this instrument affects investors and speculators and directly impacts businesses engaged in real estate investment and trading. Introducing a tax immediately, when the market has only just begun to recover, could compound its difficulties.<\/p>\n

“A roadmap should be developed for introducing a real estate tax, with a lead time of around two to three years, when the amended laws have truly taken effect in the market,” Cuong said.<\/p>\n

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\"Prof. <\/p>\n
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<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>
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Prof. Dr. Hoang Van Cuong speaks at a seminar on the real estate market on October 10. Photo: NEU<\/em><\/p>\n<\/figcaption><\/figure>\n

Speaking on the sidelines of the seminar, lawyer Pham Thanh Tuan of the Hanoi Bar Association also said that a progressive tax on owners of multiple houses and land plots is necessary. Many developed countries, including Singapore, South Korea, the United Kingdom and Canada, have introduced taxes on second properties or properties left unused, helping promote transparent market management and curb speculation. Responding to the view that housing and land prices still rise in countries that tax real estate, Tuan said it is important to distinguish between sustainable growth and uncontrolled, skyrocketing selling prices.<\/p>\n

“A real estate tax, together with other instruments, helps bring down housing prices,” Tuan said.<\/p>\n

The expert explained that a tax would directly affect speculators who own multiple houses and land plots but leave them unused. If they factor the tax into their selling prices, the market would still struggle to absorb these properties immediately, as buyers hold the power to choose. This means speculators holding numerous houses and land plots would face both high taxes and a reduced competitive advantage, forcing them to accept lower prices and “unload their holdings.”<\/p>\n

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\"The <\/div>
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The highest winning bid at a land auction site in Hoai Duc District exceeded VND 120 million per m2, 16 times the starting price. Photo: Anh Tu<\/em><\/p>\n<\/figcaption><\/figure>\n

In a paper submitted to a conference held by Hung Vuong University (Ho Chi Minh City), the university said Vietnam could draw on land policies and international experience in using real estate taxes.<\/p>\n

In France, for example, market management relies in part on the BIEN database, to which notaries contribute. BIEN stores detailed information on real estate transactions, including selling prices, property types, locations and other factors. Buyers pay notaries through an escrow account, after which registration procedures and tax and fee payments are completed before buyers take possession of their homes. Notaries can monitor the actual prices in transactions and transfers.<\/p>\n

\u00a0<\/div>\n

According to a representative of Hung Vuong University, Vietnam’s notarization data system is still being developed, leaving a significant gap in the monitoring and control of real estate values. To adopt an instrument such as BIEN, notarization and real estate registration databases must be linked nationwide, while notaries must be allowed greater involvement in the transfer process to record market prices more accurately.<\/p>\n

In a report submitted to the Government Office, the Ministry of Construction proposed a tax<\/a> on those owning or using multiple houses and land plots to curb speculation and short-term buying and reselling for profit. The Ministry of Finance said it would study this policy, but noted that, beyond taxes, coordinated instruments covering planning, infrastructure and other areas are needed to stabilize the real estate market and support its sustainable development.<\/p>\n

A recent VnExpress<\/em> poll of nearly 32,000 readers found that nearly 70% of respondents supported taxing second properties and properties left unused. In fact, this proposal has been raised repeatedly over the past 15 years but remains “on paper<\/a>.” Many experts attribute this to concerns about the impact on the market, unsuitable timing and even a “lack of political will.”<\/p>\n

Ngoc Diem<\/strong><\/p>\n

Link: https:\/\/vnexpress.net\/gs-ts-hoang-van-cuong-nen-danh-thue-bat-dong-san-de-ngan-dau-co-nha-dat-4802627.html<\/a><\/strong><\/p>\n<\/p><\/div>\n

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Prof. Dr. Hoang Van Cuong proposed developing a roadmap to introduce a real estate tax in the next two to three years to curb speculation and protect the interests of the majority of homebuyers. Prof. Dr. Hoang Van Cuong, Vice President of National Economics University (NEU), shared this proposal at a seminar on the real estate market on October 10. He said the real estate market had been out of balance since late 2022, with many segments facing difficulties or even becoming “frozen,” while prices remained high. New supply did improve in the first nine months of this year, but it consisted entirely of projects that had already begun construction or received approval. Despite the increase in supply, selling prices did not fall and even continued to reach new levels. “When the market is out of balance, speculators benefit the most because they can easily push up prices and profit,” he observed. Meanwhile, the 2024 Land Law abolished the old land price framework and requires annual adjustments to land price schedules to bring valuations as close as possible to market prices. According to Cuong, unless speculation and manipulation are controlled, land valuation will face considerable difficulties, directly affecting land users’ rights and interests. This poses numerous risks that could undermine the market’s sustainable development. Prof. Dr. Hoang Van Cuong therefore argued that it is necessary to tax second and subsequent properties, as well as properties left unused. This solution offers dual benefits: curbing speculation and ensuring market balance, while encouraging use rather than the wasteful accumulation of houses and land that are then left unused. A real estate tax would also generate substantial budget revenue that could support the development of social and affordable housing for the public. However, he cautioned that the timing of the tax requires careful consideration because this instrument affects investors and speculators and directly impacts businesses engaged in real estate investment and trading. Introducing a tax immediately, when the market has only just begun to recover, could compound its difficulties. “A roadmap should be developed for introducing a real estate tax, with a lead time of around two to three years, when the amended laws have truly taken effect in the market,” Cuong said. Prof. Dr. Hoang Van Cuong speaks at a seminar on the real estate market on October 10. Photo: NEU Speaking on the sidelines of the seminar, lawyer Pham Thanh Tuan of the Hanoi Bar Association also said that a progressive tax on owners of multiple houses and land plots is necessary. Many developed countries, including Singapore, South Korea, the United Kingdom and Canada, have introduced taxes on second properties or properties left unused, helping promote transparent market management and curb speculation. Responding to the view that housing and land prices still rise in countries that tax real estate, Tuan said it is important to distinguish between sustainable growth and uncontrolled, skyrocketing selling prices. “A real estate tax, together with other instruments, helps bring down housing prices,” Tuan said. The expert explained that a tax would directly affect speculators who own multiple houses and land plots but leave them unused. If they factor the tax into their selling prices, the market would still struggle to absorb these properties immediately, as buyers hold the power to choose. This means speculators holding numerous houses and land plots would face both high taxes and a reduced competitive advantage, forcing them to accept lower prices and “unload their holdings.” The highest winning bid at a land auction site in Hoai Duc District exceeded VND 120 million per m2, 16 times the starting price. Photo: Anh Tu In a paper submitted to a conference held by Hung Vuong University (Ho Chi Minh City), the university said Vietnam could draw on land policies and international experience in using real estate taxes. In France, for example, market management relies in part on the BIEN database, to which notaries contribute. BIEN stores detailed information on real estate transactions, including selling prices, property types, locations and other factors. Buyers pay notaries through an escrow account, after which registration procedures and tax and fee payments are completed before buyers take possession of their homes. Notaries can monitor the actual prices in transactions and transfers. \u00a0 According to a representative of Hung Vuong University, Vietnam’s notarization data system is still being developed, leaving a significant gap in the monitoring and control of real estate values. To adopt an instrument such as BIEN, notarization and real estate registration databases must be linked nationwide, while notaries must be allowed greater involvement in the transfer process to record market prices more accurately. In a report submitted to the Government Office, the Ministry of Construction proposed a tax on those owning or using multiple houses and land plots to curb speculation and short-term buying and reselling for profit. The Ministry of Finance said it would study this policy, but noted that, beyond taxes, coordinated instruments covering planning, infrastructure and other areas are needed to stabilize the real estate market and support its sustainable development. A recent VnExpress poll of nearly 32,000 readers found that nearly 70% of respondents supported taxing second properties and properties left unused. In fact, this proposal has been raised repeatedly over the past 15 years but remains “on paper.” Many experts attribute this to concerns about the impact on the market, unsuitable timing and even a “lack of political will.” Ngoc Diem Link: https:\/\/vnexpress.net\/gs-ts-hoang-van-cuong-nen-danh-thue-bat-dong-san-de-ngan-dau-co-nha-dat-4802627.html This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn.<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[724],"tags":[],"class_list":["post-76147","post","type-post","status-publish","format-standard","hentry","category-economic-information","post-no-thumbnail"],"acf":[],"_links":{"self":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/76147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/comments?post=76147"}],"version-history":[{"count":0,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/76147\/revisions"}],"wp:attachment":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/media?parent=76147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/categories?post=76147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/tags?post=76147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}