HoREA says 70% of real estate market difficulties are related to legal matters |
On the morning of March 11, Deputy Prime Minister Tran Hong Ha chaired an online meeting of the Working Group of the Prime Minister to review, urge, and guide the resolution of difficulties in implementing real estate projects for localities and businesses after the enactment of new laws (Land Law, Housing Law, Real Estate Business Law). The conference was attended by many ministries, sectors, localities, and associations.
Assessing the real estate market, the Ministry of Construction said that recently, the Government, the Prime Minister, the Working Group of the Prime Minister, along with the ministries, sectors, and localities, have issued many directives and implemented many synchronized solutions to resolve difficulties in the real estate market.
These directives have helped the real estate market undergo positive changes and overcome the most difficult period.
“However, the real estate market and businesses are still facing many difficulties and challenges due to the impact of various unfavorable factors both domestically and internationally,” said the Ministry of Construction, which assessed this difficult situation starting from the end of 2022 and continues to the present time.
Specifically, many real estate projects have encountered a lot of difficulties in implementation (being temporarily suspended, delayed, or extended; difficulties in accessing credit loans, issuing bonds, and mobilizing capital). Purchasing power and liquidity have decreased significantly.
Although the supply for the market is quite limited, the prices of houses tend to increase, exceeding the financial capacity of the majority of people. The difficulties in the real estate market have also affected many industries and professions, impacting social welfare and security.
In addition, businesses are also facing many difficulties and obstacles related to legal issues in the fields of land, planning, investment, housing, urban areas, and construction (regulations that do not allow approval decisions and choose investors for commercial housing projects in cases where they already have the right to use “other land” that is not residential land; projects that have been granted investment certificates but have not completed the process of approving investment decisions according to the provisions of the law on housing and urban areas; approval of investment decisions for renovation projects of old condominiums; conversion of apartment area and conversion price in compensation plans…) and related to credit sources, bond issuance, and the handling of proposals from businesses by competent authorities which is still delayed.
Despite the difficulties and institutional obstacles that have been removed by the new laws (Procurement Law, Housing Law, Real Estate Business Law, Land Law, Credit Organization Law) passed by the National Assembly, these laws have not yet taken effect, leading to the current difficulties and obstacles not being resolved immediately.
Many solutions are needed to resolve the difficulties in the real estate market
Regarding some tasks and solutions in the coming time, the Ministry of Construction needs to focus on urgently building and completing draft detailed regulations and guidelines for the implementation of the Housing Law, Real Estate Business Law to submit to the Government in May 2024. It needs to promote the activities of the Working Group, timely guide and remove legal procedure difficulties; urge localities to resolve difficulties and obstacles of real estate projects that have been reviewed and have guiding documents from the Working Group, completed before June 30, 2024.
The Ministry of Natural Resources and Environment needs to focus on urgently building and completing draft detailed regulations and guidelines for the implementation of the Land Law to submit to the Government in May 2024. It needs to direct, guide, and support officials who work directly with localities, especially in major cities such as Hanoi, Ho Chi Minh City, Da Nang, to resolve difficulties related to land allocation, land lease, land price determination, land use planning, annual land use plans. Strengthen inspection and examination of the settlement of procedures to determine land prices for real estate projects, promptly detect and strictly handle cases of “circumvention” causing delays.
The State Bank of Vietnam needs to strengthen its leadership, urge, and guide commercial banks to create more favorable conditions for businesses, real estate projects, and home buyers to access credit capital. Among them, research, propose, and implement solutions for debt restructuring related to real estate projects of businesses. Continue to effectively implement the 120,000 billion VND credit program…
For businesses, they need to adjust the segments and prices of real estate, adapt to the market, ensure liquidity, and create capital flow to maintain operations and implement projects…
Van Duân
