In recent discussions, experts have highlighted the government's role in determining land prices as a means to control input costs and ultimately reduce real estate prices. However, they caution that merely adjusting land prices is insufficient; a comprehensive approach is necessary to make housing more affordable for the general public.

Government Pricing and Market Dynamics

Truong Anh Tu, President of TAT Law Firm, noted that while government-set land prices can help manage a crucial input for real estate projects, it is essential to implement specific steps to ensure that these changes lead to lower housing costs. He emphasized that the ultimate concern for citizens is not just how much businesses can reduce land costs, but whether these reductions translate into more affordable housing opportunities.

According to Tu, a decrease in land costs does not automatically result in lower housing prices. The selling price of homes is influenced by various factors, including supply and demand, capital costs, project timelines, location, infrastructure, and competition levels. If input costs decrease but supply remains limited, the market price may not reflect these savings.

Reducing Time and Capital Costs

Experts also stress the importance of reducing both time and capital costs associated with real estate projects. Nguyen Minh Cuong, a lawyer from Ho Chi Minh City, pointed out that while government pricing can lower input costs, it is crucial to consider how the economic benefits of these changes are distributed. Developers need profits to reinvest and grow, but if the main goal of policy changes is to lower housing prices, the benefits must also be evident for homebuyers.

Trần Việt Anh, Vice President of Hung Vuong University in Ho Chi Minh City, echoed this sentiment, stating that for housing prices to decrease significantly, there must be simultaneous reductions in land, capital, and time costs. He explained that the price of a home includes various components such as land, construction, financing, taxes, management, and often overlooked time costs. Lengthy approval processes can significantly inflate costs, leading to higher prices for consumers.

Streamlining Processes for Better Outcomes

The current land pricing policy is expected to help stabilize and gradually reduce housing prices, but experts warn against expecting immediate results. They argue that a holistic approach is necessary, where reductions in land, capital, and time costs all contribute to a meaningful decrease in housing prices. Without addressing all three factors, any price reduction may be insufficient.

In conclusion, while the government's role in setting land prices is a step towards more transparent and sustainable real estate markets, experts emphasize the need for a coordinated strategy that also addresses the complexities of project timelines and financing to ensure that the benefits are felt by the public.