The Government has recently issued Decree No. 96/2024/ND-CP (Decree 96), which took effect on August 1, providing  detailed regulations for certain aspects of the Law on Real Estate Business 2023 (amended).

Decree 96 aims to regulate the real estate market, curb speculation, and ensure socio-economic stability.

One of the most important contents of Decree 96 is intervention in response to increases in the real estate transaction price index.

Under the newly-issued decree, in case prices in the real estate market increase by more than 20% for three months, relevant State management agencies have to propose measures to regulate the market.

In this case, the Ministry of Construction (MOC) will assess the real estate market situation and propose measures to regulate the market, based on the Government's direction or the price index, real estate transaction volume index, economic and social indicators and statistics of other sectors relating to the real estate market.

According to the decree, the State will also regulate the property market when the market fluctuates and threatens socio-economic stability.

To identify measures on regulating the real estate market, the MOC will coordinate with ministries, ministerial-level agencies and provincial people's committees to have reports assessing the market situation within 15 days and proposing the identified measures on regulating the real estate market to submit to the Government for approval.

The MOC also suggests necessary measures relating to policies on urban planning, construction, housing, and real estate business, as well as on the development programs for urban areas, housing and real estate, and the structure of real estate products.

Measures relating to policies on investment and bidding will be proposed by the Ministry of Planning and Investment and those relating to policies on land will be identified by the Ministry of Natural Resources and Environment.

Meanwhile, the Ministry of Finance will propose measures relating to policies on tax, finance, securities and corporate bonds.

The State Bank of Vietnam, for its part, will suggest measures relating to credit policies.

Local people's committees will assess the progress of real estate projects in their areas and then propose regulatory measures for the local real estate market.

In case approving the market regulation measures exceeds the Government's authority, those measures will be submitted to the National Assembly and the National Assembly Standing Committee for consideration and approval.