Auctioned land plots in Đông Anh District, Hà Nội. The Ministry of Construction has asked localities to enhance management amid abnormal increases in apartment and land prices in major cities recently. — VNA/VNS Photo Mạnh Khánh

HÀ NỘI — The Ministry of Construction has asked localities to enhance management on housing prices amid abnormal increases in the cost of apartments and land in major cities recently.

The development of the real estate market lacks sustainability, the ministry said.

Violations are still taking place in several localities, especially in cases where investors and brokers spread rumours to distort the market and push up real estate prices for profiteering.

In Hà Nội, for example, the prices of apartments and housing prices have skyrocketed in several areas including Tây Hồ, Hai Bà Trưng, Ba Đình, Hoài Đức districts.

Notably in some land use right auctions winning bids were many times higher than the initial prices, affecting the socio-economic development and the healthy development of the real estate market.

The Ministry of Construction asked provinces and cities to tighten control over the development of real estate prices.

Accordingly, the focus will be on carrying out inspections on the operation of developers, real estate trading enterprises and brokers. Special attention should be paid to properties which are 'flipped' many times over a short period of time and in areas with abnormal increases in prices.

Speculations should be strictly handled, the ministry urged.

Localities must clarify reasons for increases in prices of different property products such as apartments, independent houses and land and raise measures to ensure the stable, healthy and sustainable development of the real estate market.

Auctions of land use rights must be carried out transparently and in line with the established regulations.

It is critical to ensure real estate prices are in line with the conditions of each locality to prevent negative impacts on investment, production and business and meet housing demand of residents, the ministry said.

Market information must be made public, including planning information, land use plans, housing development programmes, infrastructure development projects, real estate projects and the changes in administrative units to prevent speculation and frauds, the ministry asked. — VNS