The importance of transparent information disclosure cannot be overstated, especially when it comes to the real estate market. Mr. Vuong Duy Dung, Deputy Director of the Housing and Real Estate Market Management Department (Ministry of Construction), emphasized this point during a seminar titled “New Opportunities for the Real Estate Market” held in Hanoi on August 1st. He highlighted the entry into force of the Land Law, the Real Estate Trading Law, and the Housing Law and their potential impact on addressing challenges in the market.
Mr. Dung acknowledged that some challenges in the real estate market are not solely due to legal regulations. It is essential to distinguish between difficulties arising from legal issues, planning, or investment. The Housing Law and the Real Estate Trading Law address crucial aspects, including approval of investment plans for commercial housing, development of social housing, conditions for real estate business revocation, and market conditions for participating entities such as brokers and real estate exchanges.
Amendments to the Housing Law introduce streamlined procedures for social housing implementation, simplified eligibility criteria, enhanced incentives for investors, and clarified calculations for buying and selling social housing. These changes are expected to increase the real estate supply and promote the development of social housing.
Mr. Dung believes that the combined effect of the three laws will significantly impact the real estate market. They introduce numerous provisions that facilitate the participation of organizations and individuals in the market. Additionally, he emphasized the critical need for transparent information disclosure in the market. This includes publicly available information about real estate projects, existing residential and construction works, or land use rights for projects on websites of relevant authorities, such as the Ministry of Construction, and even on enterprise websites.
Such transparency will enable stakeholders to make informed decisions and bring much-needed transparency to the operations of real estate exchanges. By addressing issues like price manipulation and unrealistic pricing, the market will move towards more transparent and honest pricing.
It is expected that the amended laws will help resolve many difficulties in the real estate market.
Mr. Dao Trung Chinh, Director of the Planning and Land Resources Development Department (Ministry of Natural Resources and Environment), shared his perspective on the early enforcement of the three laws. He expressed hope that they would resolve existing challenges in the real estate market. However, he also acknowledged the ongoing need for implementing procedures, decrees, and circulars from various ministries.
So far, five decrees have been issued, covering land reclamation activities, land price determination, compensation and resettlement, and land surveys. Additionally, two more decrees are in the works: one on collecting land use fees and another on land development decisions, drafted by the Ministry of Finance and awaiting signature.
Focusing Banking Resources on Real Estate Lending
Mr. Nguyen Quoc Hung, Vice Chairman and General Secretary of the Vietnam Banks Association, shed light on the banking sector’s efforts. He assured that the industry is concentrating its resources on providing loans for the real estate sector, including social housing. There is no shortage of funds, and banks are eager to engage with projects that meet legal requirements, offering competitive interest rates.
Mr. Hung emphasized that if projects meet the necessary criteria, they will not face a lack of funding options. Multiple banks will be willing to participate, and the State Bank has provided clear directives in this regard. He also noted that real estate businesses are actively engaging with various levels and sectors to address ongoing challenges, which are understandable given the existing complexities and unresolved mechanism-related issues.
