Important New Points
According to Deputy Minister of Construction Nguyen Van Sinh, the Housing Law 2023 is one of the important foundations for housing development strategy. In particular, the law tightens regulations on conditions for individuals to invest in multi-story, multi-unit housing for sale. This is one of the important changes, especially after the recent incidents with high-rise buildings.
In addition, the Housing Law 2023 will provide a good legal framework to support social housing development in Vietnam. The law clearly stipulates that provincial People’s Committees must allocate enough land funds for the development of social housing according to approved programs and plans.
Many new points in the Housing Law and Real Estate Business 2023.
The Real Estate Business Law 2023 has added provisions regarding deposits for future residential purchases, where sellers can only receive down payments or other payments from customers for the purpose of selling or renting homes that meet the conditions specified in this law.
In addition, the law amends and supplements regulations on transactions through real estate exchange floors, proposing the requirement of conducting transactions through the floors to enhance transparency and management of real estate activities;
Amending and supplementing regulations on construction and management of information systems on housing and real estate markets; supplementing regulations on market regulation including regulatory principles, necessary cases for regulation and implementation of regulation as a basis for the Government to direct the regulation of the real estate market when necessary.
The Government is empowered to regulate the real estate market through the implementation of policies on investment, construction, planning, housing, land, real estate business, taxes, credit, finance, and other relevant policies in each specific period.
In addition, the law also amends and supplements other contents to ensure the uniformity, consistency, and synchronization of the legal system on housing, land, investment, etc., and to ensure the control of public and transparent real estate business activities for stable, healthy, and sustainable development.
Real Estate Market Recovery
Mr. Le Hoang Chau – Chairman of the Ho Chi Minh City Real Estate Association – believes that the Housing Law 2023 is of the highest quality in over 30 years, since the 1991 Housing Decree, the 2005 Housing Law, and the 2014 Housing Law. “Overall, the Housing Law 2023 is very good, very positive, suitable for reality, ensuring the uniformity and unity of legal regulations,” Mr. Chau said.
In its recent report, BIDV Securities stated that improving infrastructure and a clear legal corridor are the fundamental factors leading to a sustainable real estate market.
Accordingly, the investment environment for real estate projects will undergo significant changes in the coming time, revolving around the amended laws. The analysis group believes that the process of building legal documents on the real estate market needs to be cautious, considering all possible cases to fully assess the impacts of policies and legal conflicts. Therefore, consistent policies open up positive expectations for a more sustainable market, with proper and transparent legal frameworks.
The analysis center of Vietcombank Securities believes that the effective laws will make businesses without resources and limited capabilities rely on the “catching mosquitoes with bare hands” strategy, dividing and selling plots of land, establishing project plans for on-paper home sales, or project transfers difficult according to the new regulations. This is also a mechanism to “filter” companies, helping financially strong businesses with the ability to mobilize capital in project development.
