Deputy Minister of Construction Bui Xuan Dung shares about the new points in the guiding documents for the implementation of the Law on Real Estate Trading, Housing Law, and Land Law – Photo: VGP/Nhat Bac
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Speaking at the regular Government press conference for July 2024, Deputy Minister of Construction Bui Xuan Dung said that on June 29, 2024, the National Assembly passed the Law amending and supplementing a number of articles of the Land Law, Housing Law, Law on Real Estate Trading, and Law on Credit Institutions. The Law amends and supplements the Housing Law and the Law on Real Estate Trading and takes effect from August 1, 2024.
So far, the Government, the Prime Minister, and the Ministry of Construction have issued five decrees and one decision, along with two circulars under the authority of the Ministry of Construction, providing details and guidance for the implementation of the Housing Law and the Law on Real Estate Trading. All these documents took effect on August 1, 2024.
Thus, the issuance of legal documents guiding the implementation of the Law on Real Estate Trading and the Housing Law has ensured the progress and taken effect as planned from August 1, 2024.
There are a number of new points that will have an impact on the real estate market. Specifically, the Housing Law and the Law on Real Estate Trading have addressed inconsistencies and overlaps between legal provisions related to investment, land, housing, real estate trading, and construction. They have also created a clear and transparent legal framework for the implementation of these laws. In addition, the guiding decrees have provided detailed regulations on the procedures for implementing projects, simplifying the procedures and shortening the time for project implementation.
The 2023 Housing Law, which has been amended and supplemented, includes a number of provisions on the development of commercial housing, social housing, resettlement housing, and separate houses to facilitate the participation of organizations, businesses, and individuals in housing development in Vietnam. It also supplements the stages of a housing development project as stated in Article 34 of the Housing Law.
At the same time, Decree 95/2024/ND-CP of the Government has also clearly defined the stages of investment in housing construction projects and the order of project implementation, simplifying procedures and shortening the time for projects to ensure convenience for organizations, businesses, and individuals involved in housing development.
Regarding social housing development, the law clearly defines the responsibility of local authorities to allocate land funds for social housing development, as stated in Article 83 of the Housing Law.
Second, the law reduces the requirements for residence conditions and limits the objects of purchase and rent of social housing to only one condition of income. For social housing beneficiaries, there are no residence requirements, and only the income condition applies, as long as they belong to the defined beneficiary group.
Third, investors are exempt from land use taxes and rents for the entire project area without having to go through procedures to determine land prices, land use rights, and taxes as prescribed by the Land Law. They are also allowed to profit up to a maximum of 10% and are given preferential treatment for up to 2% of the total land area or 2% of the total floor area of the project for the construction of commercial service and trading infrastructures.
Fourth, for beneficiaries who are workers and armed forces, there are separate policies for housing for workers in industrial zones and housing for the armed forces, as stated in Article 80 of the Housing Law.
The Law on Real Estate Trading 2023 and its guiding legal documents have also directly regulated and guided the types of real estate and projects that can be traded, as well as the public disclosure of information about real estate and projects being traded, as prescribed in Decree 94/2024/ND-CP on the conditions for organizations and individuals doing business in real estate.
In August and September, the Ministry of Construction and specialized agencies will disseminate information about the law, especially the decrees that took effect on August 1, 2024, and the procedures related to the Housing Law and the Law on Real Estate Trading, to 63 provinces and cities in the northern, central, and southern regions of the country. This will help bring the laws and decrees into life and promote the stable, healthy, and transparent development of the real estate market.
