The Ministry of Natural Resources and Environment (MoNRE) will take a series of measures to stabilise the country’s real estate market, which has been seen to be seriously volatile lately.

Addressing a recent meeting on the subject, MoNRE deputy minister Tran The Ngoc said it was indispensable to develop the Centre for Land Use Planning, which would monitor the use of State land and repossess land if it was being used illegally.

"More land will be freed up to meet demand if the centre can take back unoccupied land," said Ngoc, adding that this would serve to cool real estate prices.

However, the Government needed to ratify more flexible policies to help the centre in its operation, said Ngoc.

Another measure taken to deal with the property market’s shortcomings is the issuance of preferential policies for those who invest in building new urban residential areas and upgrading existing ones, Ngoc said.

He said it was also necessary to better manage State investment in real estate, to create more housing for low income citizens.

Ngoc also recommended the Government gradually streamline overlaps in the current laws on land and housing, and come up with an effective strategy for the development of the country’s real estate market.

The development of real estate exchanges and payment via banks to restrict illegal trading were also considered effective measures to stabilise the real estate market, said Ngoc.

Closer supervision of real estate construction projects was also needed to help authorities reclaim land not used as planned.

MoNRE also attributed the recent volatility in property prices to the imbalance of supply and demand. The country’s accession to the World Trade Organisation and the nation’s impressive economic growth pushed up real estate demand in the country, the ministry said.

The issuance of more flexible policies on real estate, including a regulation allowing foreigners to buy houses in Viet Nam, have also contributed to heating up the market.

Property prices have also risen due to gaps in legal regulations, which have allowed the number of brokers and speculators in the market to boom, MoNRE said.

Source: VietnamNews.