Ho Chi Minh City Strengthens Control and Addresses Real Estate Price Manipulation: Striving for Sustainable Development

Ho Chi Minh City’s real estate market is currently facing issues of price manipulation and land speculation, leading to significant imbalances in the housing structure. This situation not only causes price volatility but also makes it extremely difficult for the majority of citizens, especially those with middle and low incomes, to afford housing. In response, the Ho Chi Minh City government has decided to implement strong measures to regulate and stabilize the real estate market, ensuring sustainable development and protecting citizens’ interests.

Tightening Supervision of Developers and Real Estate Agents

Ho Chi Minh City’s Chairman, Phan Văn Mãi, has directed relevant departments to strengthen the supervision of local developers, real estate agents, and brokerage firms. The goal is to promptly detect and address price manipulation, speculation, and other illegal activities in real estate transactions.

The inspections will focus particularly on areas and projects showing abnormal price increases, so that actions can be taken to prevent and deal with illegal behavior. All real estate projects will undergo a review of their legality, and full information will be required to ensure transparency and protect consumers’ rights.

One of the key directives from Chairman Phan Văn Mãi is to tighten control over the issuance of real estate broker licenses. This aims to prevent the involvement of incompetent brokers or those engaging in fraudulent practices, ensuring that transactions are transparent and secure. Additionally, real estate trading platforms will be subject to stricter supervision to ensure compliance with regulations and lawful operations.

Severe Punishment for Exploiting Land Auction Rights for Profit

In addition to monitoring real estate activities, Ho Chi Minh City is also placing a strong emphasis on tackling the abuse of land auction rights for personal gain. Such practices are one of the main causes behind the sudden price surges in certain areas. The city’s Department of Natural Resources and Environment will cooperate with relevant authorities to detect and handle cases of individuals or organizations exploiting land auction rights for profit.

The Ho Chi Minh City Police have also been assigned the responsibility to investigate and handle those who spread false information or intentionally manipulate land auction data to create artificial price spikes, defraud citizens, and profit from these activities. These actions will be severely punished in accordance with the law, to prevent further manipulation of the real estate market.

Addressing the Structural Imbalance in the Real Estate Market

One of the main causes of abnormal price fluctuations in Ho Chi Minh City's real estate market is the imbalance in the housing supply structure. According to a report from the Ho Chi Minh City Department of Construction, in 2024, the city only released 1,611 eligible commercial housing products to the market, all of which were high-end properties with an average price of 9.39 billion VND per unit. Affordable housing is almost nonexistent.

The Ho Chi Minh City Real Estate Association (HoREA) has pointed out that the market is currently developing in an “inverted pyramid” model, where high-end, luxury homes dominate, while low- and middle-income housing is nearly absent. This has driven the average price of real estate in the city to over 60 million VND per square meter, which far exceeds the financial capabilities of most citizens. The lack of affordable housing not only creates difficulty for buyers but also threatens the sustainable development of the real estate market.

Rebuilding a Sustainable Real Estate Market

To address this issue, Ho Chi Minh City needs to adopt measures to encourage developers to expand the supply of affordable housing to meet the needs of the majority of citizens, especially those with low and middle incomes. The city government could consider offering construction cost subsidies or tax incentives to encourage developers to focus on affordable housing projects.

Additionally, Ho Chi Minh City must increase oversight of land and real estate transactions, especially in areas with signs of speculative price hikes, to prevent further price manipulation. Relevant authorities should also disclose price information about various projects and land plots transparently, helping citizens better understand the market and make informed purchasing decisions.

Finally, the city government should intensify efforts to educate the public about the real estate market. This will help citizens understand market rules and reduce the risks associated with real estate investment. Raising awareness of market practices will help reduce speculative activities and price manipulation, ultimately promoting a healthier and more stable market.

Ho Chi Minh City needs to work with relevant departments to formulate specific solutions that will allow the real estate market to develop more evenly and rationally. In doing so, the market will not only continue to grow but will also ensure that it provides tangible benefits to the majority of citizens, creating a stable and sustainable living environment for everyone.

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