Unblocking Supply and Cooling Down Housing Prices: Key Solutions and Directions

The Vietnamese real estate market is facing significant pressures from legal policy changes, rising financial costs, and difficulties in accessing capital. Soaring property prices, particularly in major cities like Hanoi and Ho Chi Minh City, have become a major obstacle for citizens to access housing. To address this issue, a comprehensive approach is required, including implementing property tax policies, adjusting supply structures, and strengthening financial support.

Current State of Housing Prices

According to economic experts and policymakers, housing price increases are driven not only by high demand but also by speculative factors and market psychology. In Hanoi and Ho Chi Minh City, the majority of new supply focuses on high-end properties, while affordable housing and social housing are in severe shortage. This imbalance makes it increasingly difficult for many people to achieve homeownership.

Proposed Solutions

1. Implementing Real Estate Tax Policies
   Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), emphasized that property tax is necessary to regulate the market during "overheating" or "freezing" periods. However, a transparent, accurate, and frequently updated database of transactions and property prices must be established first. Similarly, Professor Hoang Van Cuong suggested implementing value-added taxes on land and housing but emphasized selecting an appropriate time to avoid further burdening businesses and the market.

2. Adjusting Fiscal and Monetary Policies
   Dr. Can Van Luc recommended continuing to improve social housing preferential loan programs, such as the 30 trillion VND loan package, while further lowering interest rates and relaxing loan conditions to make housing more accessible to the public.

3. Increasing Social Housing Supply
   Associate Professor Dr. Dinh Trong Thinh highlighted that increasing the supply of social housing is a critical measure to cool down housing prices. Hanoi is currently evaluating four standalone social housing projects, which will provide over 12,000 apartments. Additionally, the project to convert student dormitories in Phap Van – Tu Hiep into rental social housing is expected to be completed by 2027.

4. Attracting International Funding and Investment Funds
   Prof. Thinh also proposed seeking international investment funds to ease domestic financial pressure, diversify capital sources, and promote sustainable development in the real estate market.

Long-term Strategies

In addition to short-term solutions, long-term strategies are essential to ensure the real estate market develops stably:

• Enhance legal frameworks to improve market transparency and reduce speculative activities.
• Invest in infrastructure such as transportation, education, and healthcare in suburban areas to encourage market expansion.
• Encourage businesses to invest in affordable housing through tax incentives and interest rate support.

Conclusion

To restore the real estate market to health and achieve sustainable development, close collaboration among the government, businesses, and financial institutions is crucial. Unblocking supply, implementing rational tax policies, and strengthening financial support not only help cool down housing prices but also enable millions of people to achieve their dream of homeownership. These are the keys to driving the sustainable development of Vietnam’s real estate market in the future.