Vietnam considering new property taxes to curb speculation; and other reports

For PropertyGuru’s real estate news roundup, Vietnam is considering new taxes on real estate to address rising prices and mitigate speculation after prior initiatives were postponed amid a public backlash. In other updates, Jakarta’s property market exhibited strength in 2024, despite global macroeconomic and geopolitical uncertainties, demonstrating consistent growth and resilience across various sectors. Lastly, 65 percent of Australia’s real estate professionals predict house prices will rise in 2025, driven by improving affordability, rising incomes, and the potential for cuts to interest rates.

Vietnam to introduce new taxes on real estate to curb speculation

Vietnam is considering new taxes on real estate to address rising prices and mitigate speculation after prior initiatives were postponed amid a public backlash. VietnamPlus reports that Prime Minister Pham Minh Chinh has directed the Ministry of Finance to develop policies to limit real estate speculation and improve oversight of construction projects. Reports have indicated that some regions have seen prices rise beyond residents’ financial capabilities, driven by speculative behaviour that distorts market information. Certain developers have taken advantage of limited property availability, inflating prices significantly, he said. The PM has tasked the ministry with proposing tax measures to address these issues, including a potential tax on the gap between land use fees and sale prices.

Jakarta’s property market demonstrates consistent growth and resilience in 2024: JLL

Jakarta’s property market exhibited strength in 2024, despite global macroeconomic and geopolitical uncertainties, demonstrating consistent growth and resilience across various sectors. Yunus Karim, Head of Research at JLL Indonesia, says in RETalk Asia, “Jakarta’s CBD office market maintained a stable occupancy rate of 70 percent, with a significant 17 percent increase in Grade A space absorption. This reflects a ‘flight-to-quality’ trend as businesses pivot towards newer, high-quality buildings. Complementing the strong performance, non-CBD areas also recorded a stable occupancy rate of 71 percent by year-end.” In the retail sector, market activities include the launch of Mal Puri Indah 2. Developers have been adjusting tenant compositions to align with evolving consumer preferences, based on their target markets.

65 percent of real estate agents predict Aussie house prices to rise in 2025

The majority of Australia’s real estate professionals (65 percent) predict house prices will rise in 2025, driven by improving affordability, rising incomes, and the potential for cuts to interest rates, according to CoreLogic’s annual report Decoding 2025. The Real Estate Conversation notes that the report, which uncovers insights from over 2,400 real estate agents and banking and finance professionals, explores key challenges facing the industry including the housing market, first-home buyer trends and business priorities. It reveals that two-thirds expect house prices to rise, with 25 percent predicting gains exceeding 5 percent. Queensland emerged as the standout market, buoyed by strong internal migration trends, with 70 percent of respondents forecasting price growth for the Sunshine State in 2025.

The Property Report editors wrote this article. For more information, email: [email protected].