Individuals’ property transactions capped at 10 a year

The value cap will not apply if only one transaction takes place in a year, according to a new government decree to clarify the Real Estate Trading Law.

Such individuals do not need to set up a company but must declare and pay taxes. The same limits also apply to organizations that sell or lease properties if it is not for business purposes.

In 2020-22 the real estate market saw several abnormal price spikes, particularly in the suburban land segment. Many areas in the outskirts of Hanoi and its neighboring provinces such as Bac Giang, Bac Ninh, Hoa Binh, and Hung Yen saw land prices increase by 40-50%, leading to a surge in speculation.

According to analysts, the new decree, which also tightens the requirements for real estate brokers, could help curb speculation.

The decree also requires brokers to have a professional certificate and no longer freelance but instead work for a real estate exchange, brokerage firm or real estate consulting and management company.

In the first half of 2024 the property market saw several positive developments. Data from the Vietnam Association of Realtors shows that over 1,500 real estate companies resumed operations in the period, 11% up from a year ago.

The association also said certain property segments, especially apartments in large cities, have experienced a sharp rise in demand. Low-rise houses and lands near large urban areas also saw better liquidity, it added.