Vietnam Real Estate Association Calls for Avoided Shock to Property

Le Hoang Chau, vice chairman of Ho Chi Minh Real Estate Association called on local authorities to avoid causing a shock to the property market on rumors that progressive tax and the move by State Bank of Vietnam recently asking banks and credit institutions to buy mandatory treasury bills worth VND20.3 trillion will deflate the market soon.

 

Chau made his proposal at the meeting February 18 in Ho Chi Minh City and attributed the property bubble in part to the thin supply, calling the progressive tax “too strong medicine.”

 

“The real estate market in Vietnam is still very fledging; measures to cool down step by step are much needed,” Chau noted.

 

To cool down the overheated real estate market, the association leader recommended the city authorities to improve the housing laws to expand the supply and create fair playing field between the domestic and foreign property developers.

 

In contrast, Mayor Le Hoang Quan, a member of Vietnam’s Politburo said the real estate markets in Vietnam in general and Ho Chi Minh City in particular are listed among the world’s overheated ones and lessons must be learnt from Thailand, and the measures taken by government agencies are necessary to deflate the bubble.

 

Quan also said the city authorities will assign the municipal Departments for Planning and Architecture, Construction to reconsider and draft housing standards.

 

The city mayor noted that of 5,000 real estate developers, most of them are involved in building high-class apartments.

 

Housing and land prices in many localities in Vietnam have kept rocketing at 50 per cent-100 per cent over the past months, analysts said. (Pioneer Online, DiaOc Online)