Vietnam’s Ministry of Natural Resources and Environment is increasingly worried about rising land prices across the country that are the result of real estate speculators spreading rumors about so-called “future” real estate projects.
Because of this, the General Department of Land Administration has been tasked with the duty of examining land management procedures for misconduct in 26 localities across the country.
Additionally, the Ministry of Construction has asked local administrations to provide transparent background information and frequent updates about the progress of housing and infrastructure projects in their localities in order to prevent the spread of misinformation and halt rumors.
The concern by multiple government agencies comes after reports that prices in January and February rose in some areas by as much as 10%.
The government has noted that there is above “normal” speculation in Hanoi, Ha Long Town and Bac Ninh Province.
According to the Vietnam Real Estate Brokerage Association, speculators in these areas have spread multiple rumors about so called “secret” real estate development plans in these areas and have created false documents and other collateral materials to support their “insider” information.
The rise of land prices is worrying to the government since it can lead to spiraling land prices that will increase the cost of public housing, infrastructure and transportation projects.