Some 80 percent of Vietnam's population cannot buy flats due to high prices, local newspaper Young People on Monday quoted some local experts as reporting.
Main reason for the high prices are state monopoly in land-use right market and planning, and high speculation rate, the newspaper quoted Nguyen Quang, who works for the United Nations Human Settlements Program, as saying.
He said non-transparency in granting and allocating land, and planning, approving and adjusting land use-related schemes increases costs of investors who want to develop real estate projects, while at least 60 percent of house buyers in Vietnam purchase flats and villas for speculation, not for accommodation.
Proper price of a common flat in Vietnam should be 300-400 million Vietnamese dong (VND) (18,800-25,000 dollars), he said, noting that local people cannot afford a flat in the capital of Hanoi.
Some projects on constructing high-rise apartment buildings in Vietnam have profit rates of up to 400-500 percent, while the proper rate is about 30 percent, said Nguyen Truong Tien, vice general director of the Hanoi Construction Corporation.
The Hoang Anh River View Project in southern Ho Chi Minh City had cost of only 832 billion VND (52 million dollars), but revenues of 5,017 billion VND (nearly 313.6 million dollars), and profits of 4,113 billion VND (257.1 million dollars), Tien said.
Vietnam should open tenders for realty projects, Quang said, noting that enterprises currently have to make projects and then ask the state for land allocation.
The country should also impose heavy taxes on realty speculation activities, and use tax revenues to invest in infrastructure and construct flats for low-income earners, Quang said.
Source: Xinhua
|
Comment
Tell A Friend
Print Format
Save Article