Deputies attend at Binh Duong bridge point
Responding to deputies' questions about solutions to prevent "underground handshake" in land auctions; "inflation" of land price for personal gain, Minister Tran Hong Ha acknowledged the fact that there is not only a phenomenon of inflating the prices but also a phenomenon of hooking and lowering prices, disturbing the market, causing many consequences. The reason is due to the lack of specific laws related to land auction such as: The order is not strict; conditions and capacity of enterprises participating in the auction have not been specified; sanctions for people who deliberately push prices high and then put down deposits are not enough of a deterrent. In addition, the legal tools to prevent the situation of green subject, red subject, hooking or threatening participants in the auction of land use rights are not tight, even loopholes. The Minister said that the Ministry of Natural Resources and Environment will coordinate with relevant agencies to study and propose to the competent authorities strict regulations to prevent this situation.
Minister of Natural Resources and Environment Tran Hong Ha answers questions
Regarding the number of enterprises that have mobilized capital through signing various types of contracts such as promise to purchase and sell, and capital contribution contracts, Minister Tran Hong Ha said contracts that promise to purchase and sell are circumventing the Land Law. The Land Law stipulates that real estate products can only be put on the market when there is a planning, infrastructure or foundation investment, etc. and the project has to pay its financial obligations. This is applied by the Civil Code because the Civil Code does not prohibit contractual transactions.
According to the Minister, the risk problem here is that there will be unreal investors, doing "ghost projects" without planning, without approval, land has not changed purpose, has not fulfilled financial obligations, has not yet fulfilled other obligations, but want to put it on the market to attract capital. The Land Law does not regulate the issues of promise to sell, promise to purchase and contracts; the Civil Law does not prohibit it, so in order to limit the risk, it is necessary to find a basis for settlement. According to the Minister, to fundamentally solve this problem, all planning must be made public.
Regarding the issue of land price inflation and speculation, the Minister admitted "this is a clear and real phenomenon". According to him, in the context of the Covid-19 pandemic, people and enterprises have deposited their assets in the land and when the land price skyrocketed, everyone thought it was successful. According to the Minister, in this regard, the State must regulate to prevent the problem of inflated prices. It is not allowed to have unused land that has participated in auctions to keep the land, hoard the land. At the same time, there must be policies to control investment projects. It is necessary to determine the roadmap for this project to put it into service for economic development. Market segments must be distinguished. The demand of residential real estate must be taken as a basis to decide on investment in urban development, not the goal of earning amount in this or that term. That is, it must ensure the balance between supply and demand of the real estate market.
Reported by Yen Nhi- Translated by Thanh Tam