State-managed property trading centers to curb speculation in Vietnam

STATE MANAGED PROPERTY TRADING CENTERS TO CURB SPECULATION AND PRICE MANIPULATION: EXPERT INTERVIEW

The establishment of state managed real estate trading centers is expected to create a transparent transaction channel, helping to control and limit speculation and price manipulation in Vietnam’s property market. This initiative is part of a draft resolution on mechanisms to stabilize real estate prices, currently under review by the Ministry of Construction.

THE DRAFT RESOLUTION: KEY SOLUTIONS FOR MARKET STABILIZATION
The proposed resolution focuses on three primary measures:
Establishing real estate trading centers under state management.
Implementing stricter lending policies for homebuyers, particularly for second or subsequent properties.
Developing affordable commercial housing to address supply demand imbalances.

Under the draft, loan limits would be imposed on buyers of multiple homes—capping financing at 50% of the contract value for a second property and 30% for a third or subsequent property. The goal is to discourage speculative purchases amid persistently high housing prices in major cities, which have far exceeded the financial capacity of most households.

EXPERT PERSPECTIVE: PHAN VIET HOANG, GENERAL SECRETARY OF KHANH HOA REAL ESTATE BROKERS ASSOCIATION
The Investor spoke with Phan Viet Hoang to gather insights on the draft resolution and its potential impact on Vietnam’s real estate market.

ON THE NEED FOR GOVERNMENT INTERVENTION
"Real estate prices have surged to abnormal levels in many areas, far beyond what most middle and low income households can afford. This is an urgent issue requiring synchronized solutions. The proposals to establish state managed trading centers and develop affordable housing have received strong public support. However, real estate credit policies should focus more on monitoring the use of borrowed funds—both by developers and individual buyers—rather than simply restricting access to loans."

ON LOAN RESTRICTIONS FOR SECOND HOMES
"Capping loans for second or third homes may not effectively reduce speculation. In fact, it could drive prices even higher in central urban areas. Large families or businesses seeking adjacent properties for expansion would face unnecessary credit barriers. Instead of tightening loans, introducing a property tax on unused or abandoned real estate—properties that generate no economic or social value—would be a more effective deterrent against speculation at this stage."

ON THE FEASIBILITY OF STATE RUN TRADING CENTERS
"I fully support the establishment of these centers, as they would enhance transparency, curb manipulation, and stabilize prices. However, their success depends on robust implementation frameworks, modern technology, and professional operations. A clear legal structure is essential to avoid functional overlaps with existing institutions.

These centers should serve as centralized databases, publishing verified information on prices, transaction histories, and legal statuses. This would help citizens, businesses, and authorities access reliable data. Initially, the model could be piloted in urban development projects. Over time, centralized management would improve tax compliance by reducing under reported property values and enable better monitoring of supply, demand, and pricing trends."

ON THE CHALLENGES OF DEVELOPING AFFORDABLE HOUSING
"The biggest obstacle is the high cost of inputs, which discourages developers from investing in this segment. To address this, the government should offer tax incentives, credit support, and allocate land—particularly public or restructured state owned land—for affordable housing projects. Flexible, climate adaptive designs should also be encouraged, rather than rigid adherence to traditional models."

RECOMMENDATIONS FOR THE MINISTRY OF CONSTRUCTION
Hoang proposed three key adjustments to the draft resolution:
1. Mandate transactions through state trading centers for all real estate types and projects listed under Article 5 of the Real Estate Business Law.
2. Strengthen credit evaluation criteria for developers, ensuring loans are tied to collateral quality, market segment viability, and inventory levels to prevent cyclical debt practices.
3. Introduce preferential credit policies for first time buyers to improve housing accessibility and market stability.


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