At the forum: “Unblocking the supply of real estate in the South – investment trends” organized by the Business Forum Magazine (VCCI), Mr. Nguyen Van Dinh – Chairman of the Real Estate Brokerage Association (VARS) shared that recently, the three most important laws affecting the real estate market, the Land Law 2024, the Housing Law 2023, and the Real Estate Business Law 2023 have been passed.
“These are considered the fundamental bases to help the market develop safely and healthily,” emphasized Mr. Dinh.
When officially taking effect, these three laws will have the following impacts on the real estate market.
Mr. Nguyen Van Dinh – Chairman of the Real Estate Brokerage Association
Regarding the Land Law, Mr. Dinh mentioned some new points, such as, specific regulations on cases of direct land allocation without auction: for building social housing, dormitory for workers, allocating land for teachers, medical staff working in border communes, etc.
“These provisions will help the market develop more smoothly, minimize disputes related to land. Helping investors shorten the time and cost in the process of land acquisition and project development. In addition, it supports increasing the supply of housing for low-income people, ensures housing for people, develops the economy, and society for the benefit of the nation and the public,” said Mr. Dinh.
Besides, the provisions for the remaining cases of land allocation, land lease through public auction, and bidding help the market develop transparently and avoid “backyard” cases. Thereby, selecting investors with sufficient financial and implementation capacity, contributing to effective land use, speeding up the legal progress of projects, and promoting supply for the market.
At the same time, it creates equal opportunities for investors in accessing land. Investors with sufficient financial and implementation capacity, even if they do not have “connections”, still have the opportunity to access land normally. At the same time, the provisions also help localities determine a specific land allocation mechanism to resolve issues related to land handover for project implementation.
However, Mr. Dinh said that since land rent is determined for each year, there will be fluctuations. To ensure “safety” in the financial calculations of investors, the rate of annual rent change should be limited. Avoid cases where investors set too low a provision, which is detrimental to them. If set too high, it will be detrimental to customers.
A new point in the Land Law 2024 stipulates that Vietnamese people living abroad with Vietnamese nationality have the same rights and responsibilities to use land as individuals in the country. This contributes to increasing the demand for real estate products, creating opportunities to increase transactions and promoting the supply of real estate and ensuring equality and fairness for the people.
According to Mr. Dinh, the market in 2024 will cleanse investors with poor finances, and replace them with investors with good finances, good products, and complete legal procedures… who will have a place in the new real estate “playground”. When the Land Law 2024 takes effect, new real estate projects must complete construction in accordance with the new planning and design before being sold or leased. With the scale and quality improvements, as well as utilities and infrastructure being increasingly enhanced.
Regarding the Real Estate Business Law, some new points have been stipulated, such as brokers are not allowed to operate independently but must participate in the trading floor or real estate service business enterprises; must disclose real estate information before putting it into business; prohibiting the subdivision and sale of urban land of special type, type I, II, III; stipulating that before handing over future housing, investors are only allowed to collect a maximum of 50% of the value of the sales contract instead of 70% as it is currently…
Mr. Dinh said that the new regulations of the Real Estate Business Law will eliminate many unprofessional real estate brokers, creating a healthy and transparent business environment in the market.
Regarding the Housing Law, regulations on mini-apartments in the Housing Law 2023 are being considered for granting pink books if they meet sufficient conditions, creating opportunities to access housing for people, especially low-income groups can still own houses.
In addition, the Housing Law 2023 also stipulates that the ownership period of apartments is not specified, thus contributing to the development of this segment, in the context of increasingly scarce land, especially in the centers of large cities. with a dense population.
For the social housing segment, the Law also stipulates additional subjects to invest in and develop social housing and subjects to buy or lease-purchase social housing. Thereby, helping the market increase its supply by diversifying investment resources, expanding the target group of beneficiaries more reasonably, and adding practical preferential policies.
As for the market forecast, Mr. Dinh shared that the recovery process of the real estate market will continue to progress positively. All changes will take place slowly and steadily based on the previous recovery and accumulation momentum, along with the support from economic growth and urbanization development. In which, the segment with high demand is the apartment will continue to lead the market. Next is the type of house, residential land when investors are increasingly confident about the recovery prospects of the real estate market after going through the “exploration” process.
In particular, the draft guiding decrees for the implementation of the Land Law, Housing Law, and Real Estate Business Law, which officially take effect from July 1, 2024, will be the “catalyst” to promote the process of addressing the groups. on issues in the market to bring about clearer recovery results.
