The new Law on Real Estate Business for 2023 specifically prohibits the transfer of land-use rights to individuals for self-construction of housing and self-subdivision and sale of land plots in wards, districts, and cities of special, first, second, and third-tier urban areas. This also applies to cases where the land is auctioned for investment projects in accordance with the Land Law.

For the remaining areas, the provincial People’s Committees will decide on the areas where investors can subdivide and transfer land to individuals for self-construction of houses.

On the other hand, the current law only prohibits subdivision and plot sales in wards of special and first-tier cities directly under the Central Government. It also includes areas with high architectural landscape requirements, central areas, and surroundings of architectural focal points in urban areas; frontages of regional routes and main landscape routes in urban areas.

According to statistics from the Ministry of Construction, as of December 2023, there were 902 urban areas nationwide, including 2 special urban areas, 22 first-tier urban areas, 36 second-tier urban areas, 45 third-tier urban areas, 95 fourth-tier urban areas, and 702 fifth-tier urban areas.

Thus, the new regulation will ban subdivision and plot sales in 105 cities and towns, an increase of 81 localities compared to the current regulations.

List of 105 cities and towns where subdivision and plot sales are prohibited from August 1st. Chart: Hong Khanh

In addition to the two special urban areas, Hanoi and Ho Chi Minh City, which will be tightly controlled for subdivision and plot sales, there are also 22 first-tier urban areas.

This includes 3 centrally-governed cities: Haiphong, Danang, and Can Tho, as well as 19 provincial cities: Hue, Vinh, Dalat, Nha Trang, Quy Nhon, Buon Ma Thuot, Thai Nguyen, Nam Dinh, Viet Tri, Vung Tau, Ha Long, Thanh Hoa, Bien Hoa, My Tho, Thu Dau Mot, Bac Ninh, Hai Duong, Pleiku, and Long Xuyen.

There are 36 second-tier urban areas, including the provincial cities of Phan Thiet, Ca Mau, Tuy Hoa, Uong Bi, Thai Binh, Rach Gia, Bac Lieu, Ninh Binh, Dong Hoi, Phu Quoc, Vinh Yen, Lao Cai, Ba Ria, Bac Giang, Phan Rang – Thap Cham, Chau Doc, Cam Pha, Quang Ngai, Tam Ky, Tra Vinh, Sa Dec, Mong Cai, Phu Ly, Ben Tre, Ha Tinh, Lang Son, Son La, Tan An, Vi Thanh, Cao Lanh, Vinh Long, Tuyen Quang, Soc Trang, and Kon Tum; as well as the towns of Di An and Yen Bai.

The 45 third-tier urban areas consist of 29 cities and 16 towns. The 29 cities are Dien Bien Phu, Hoa Binh, Hoi An, Hung Yen, Dong Ha, Bao Loc, Ha Giang, Cam Ranh, Cao Bang, Lai Chau, Tay Ninh, Bac Kan, Tam Diep, Song Cong, Sam Son, Phuc Yen, Ha Tien, Dong Xoai, Chi Linh, Long Khanh, Gia Nghia, Nga Bay, Thuan An, Hong Ngu, Tu Son, Pho Yen, Tan Uyen, Ben Cat, and Go Cong.

The 16 towns are Son Tay, Cua Lo, Phu Tho, Bim Son, La Gi, Song Cau, Long My, Tan Chau, Cai Lay, Quang Yen, Ky Anh, Binh Minh, Dong Trieu, Phu My, An Nhon, and Kien Tuong.

Hong Khanh

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