“Taxes should be imposed on transactions made by real estate enterprises and brokers”, says Nguyen Duc Kien, a permanent member of the National Assembly’s Economic Committee.

There has been a sharp rise of about 15 to 30% in land prices in Hanoi over the past few months. Nam Cuong Real Estate Company said that they have decided to increase the prices of land for villas and houses in Duong Noi residential project by 20%.

The price of apartments has also significantly surged, especially those in the centre with better infrastructure and living conditions. The growth has led to a spike in land prices in residential projects.

Nguyen Duc Kien, a permanent member of the National Assembly’s Economic Committee, granted VOVNews an interview on the problem.

What, in your opinion, are the reasons for the increase in land prices?

There are two reasons for the rise. Firstly, the government’s stimulus packagefor the real estate businesses has had positive effects on the market. Secondly, there is a growing demand.

Are there any other reasons?

Another secondary reason is the increase in the prices of petroleum, building materials and food. In fact, the state cannot control the demand for house ownership because the brokers have cornered the market. Many people want to invest in land and houses through brokers and real estate agencies to make profit. This can result in a rise in the price of land. In addition, some investors take advantage of the stimulus packages allocated to real estate enterprises to up their prices.

The government’s stimulus packages for real estate enterprises have shown positive results.However, there is still a contradiction between the price of land and houses and the government’s social security policy. What is your opinion about this?

That’s the truth. Real estate prices are still conflict with the government’s social security policy on low-income housing. So, we need to know if speculation or a rise in the price of construction materials is the reason.

How do you think the state should control speculation?

Taxes should be imposed on transactions made by real estate enterprises and brokers. Also, people who intend to buy land and houses through brokers should get to know their rights as well as the agencies’ responsibilities. For example, some customers, who do not fully understand the law, demand car parking only after buying houses. The Manor in Hanoi is a case in point.

Authorities can also better monitor the implementation of taxes and transaction procedures, as well as control land prices for house purchasing contracts. (VOV)