Taxing second properties not sufficient to curb speculation: Vietnam deputy finance minister

Taxing second properties and beyond is a practical measure that can curb speculation and cool housing prices, but it would not be sufficient on its own, says Deputy Finance Minister Nguyen Duc Chi.

Chi was commenting at a Friday press conference on the Ministry of Construction's (MoC) second property tax proposal submitted to the government recently.

Backing the proposal, he said his ministry will assess relevant financial policies towards enhancing transparency in the realty market.

However, a tax policy alone cannot fully address the issue, he added. “Other policies, such as those related to land use and urban planning, should also be aligned (with the measure).”

This is not the first time that the secondary real estate tax is being proposed to reduce housing prices that have been spiking over the past two years.

A similar proposal has been made by the Vietnam Association of Realtors (VARS). The proposal called for a tax policy targeting those purchasing second homes and beyond, as well as landlords who leave their properties unoccupied.

A report by the construction ministry indicated rising interest and searches for real estate information by customers and investors in the first half of this year after a gloomy period. It said 18 commercial housing projects were completed nationwide in H1/2024, 984 were in progress, and 23 were newly licensed.

Data compiled by real estate website Batdongsan.com.vn shows that as of June, the average real estate selling price in Vietnam had increased by 24% from the beginning of 2023.