As the real estate-related laws are about to come into force, there are high expectations in the overall real estate market, especially in the land segment. Many investors are looking to cash in on their property investments as the laws take effect.
However, the southern land market, while showing better signals compared to 2023, has not yet seen a significant breakthrough in transactions. According to brokers, the market has been stagnant, even with the new laws in place. Offerings remain the same, and demand is not evenly distributed across areas.
In Q2 2024, the southern land market saw a significant improvement in demand compared to the previous quarter, but it was still relatively low compared to the pre-2019 period. Source: DKRA Group.
The land market in the south has not shown any new developments since the laws took effect. This segment, which is of interest to many investors, is recovering slowly. Most industry experts agree that it will return to its recovery trajectory from 2025 onwards, as the new laws take time to be absorbed and the market adjusts to the changes.
No new developments in the southern land market after the laws took effect. Photo: Tieu Bao
The southern real estate market is currently awaiting the implementation guidelines and circulars of the new laws, which is slowing down buying and investing activities. At the same time, the pace of transactions at notary offices and land registration offices has slowed since the beginning of August.
Recently, the Ho Chi Minh City Tax Department explained the reason for the suspension of land dossiers since August 1st. They attributed it to changes in regulations regarding land use and rental calculations, which caused a backlog of unresolved dossiers in local areas.
Ho Chi Minh City’s People’s Committee has agreed to adjust and supplement the land price framework for 2020-2024 to align with market prices and reality. The new land price framework, drafted by the Department of Natural Resources and Environment, will take effect from August 1st and will feature higher land prices compared to the current framework under Decision 02/2020.
If the People’s Committee continues to apply the 2020-2024 land price framework without the coefficient K (excluding the percentage for calculating land rent in cases where the State leases land and collects annual land rent), it will be impossible to calculate land use fees, rent, and personal income tax from real estate transfers accurately according to legal regulations.
Therefore, the Ho Chi Minh City Tax Department has proposed that the City’s People’s Committee soon issue a decision to adjust and supplement Decision 02/2020 to suit the actual situation and promptly guide and direct the application of legal documents (land price framework, land price adjustment coefficient, percentage for calculating land rent, etc.) so that the tax agency can promptly calculate financial obligations related to land for dossiers arising from August 1st until the decision takes effect.
The New Real Estate ‘Gold Rush’: Strategies to Curb the Frenzy
In recent times, land prices in Hanoi have been surging to unprecedented highs, sparking fears of an asset bubble. This unusual surge in prices has led to concerns about a potential “virtual fever”, with many worried about a possible real estate “bubble”.
The Rise of Long-Term Investments: Phu Quoc’s Seafront Condos with Permanent Ownership in High Demand
The Phu Quoc real estate market is witnessing a paradigm shift towards long-term investment strategies. Seafront apartments with permanent ownership are currently dominating the scene, offering a unique combination of legal credibility, scarcity, competitive pricing, and lucrative investment potential. These properties provide the perfect opportunity for those seeking a stable and profitable future in this vibrant coastal destination.
“Foreign Direct Investment in Vietnam Surges Ahead of ASEAN Average: Over 40,000 Hectares of Industrial Land Prepared for Takeoff”
Vietnam’s exports are projected to grow at a rate of 6.8% annually between 2024 and 2030, showcasing the country’s thriving economy and its potential to become a significant player in the global trade landscape.
