Continued Obstacle Clearance
On April 25, speaking at the forum “Unblocking Real Estate Supply in the South: Investment Trends” organized by the Business Forum Magazine in collaboration with the Vietnam Association of Real Estate Brokers (VARS), Mr. Hoang Hai – Director of the Department of Housing and Real Estate Market , Ministry of Construction affirmed that the Government has taken many drastic directions to remove difficulties for the real estate market.
However, in the coming time, it is still necessary to continue removing obstacles in the organization of real estate project implementation, especially in site clearance, land allocation, land price determination … to increase supply for the market.
Mr. Hoang Hai – Director of the Department of Housing and Real Estate Market, Ministry of Construction, spoke at the forum.
Because in the first quarter of this year, only 10 projects were completed with 4,706 apartments, only 71% compared to the same period. There are 38 projects eligible to sell future housing with a scale of 5,527 units, only 73% compared to the same period in 2023.
“2024 is predicted to be still difficult for the real estate industry. However, the early entry into force of the laws will resolve and remove legal obstacles for the projects. At the same time, there are many support policies, incentives, along with clearer and more transparent regulations on legal regulations than before,” said Mr. Hai.
Mr. Hai also said that the real estate market will soon stabilize and create a new favorable environment for investors. Limitations and institutional obstacles will be removed through the issuance of new as well as the amendment, supplementation, and issuance of new laws, decrees, and circulars in many fields related to real estate.
In which, the Housing Law, the amended Land Law, and the amended Law on Real Estate Business (all effective from 1/1/2025) are major steps in perfecting institutions, promoting the land market, and construction. and Vietnam’s real estate develops more healthily, transparently, and sustainably.
“Along with perfecting the institution, the Prime Minister’s Working Group has urgently reviewed, urged, and guided the removal of difficulties and obstacles in the implementation of real estate projects for localities and enterprises. The Working Group has received 138 reports on difficulties, obstacles, and recommendations from localities, businesses, and associations related to 191 real estate projects. The Working Group, the Ministry of Construction have reviewed, classified, and transferred competent authorities and agencies for handling,” informed Mr. Hai.
Catalyst from 3 laws
Similarly, Mr. Nguyen Van Dinh – Chairman of VARS said that 3 laws that influence the real estate market are the 2024 Land Law, the 2023 Housing Law, and the 2023 Real Estate Business Law have been adopted. These are the fundamental bases to help the market develop in a safe and healthy direction.
The recovery process of the real estate market will continue to progress in a positive direction.
According to Mr. Dinh, the market in 2024 will purify investors with poor finances, replaced by companies with good finances, good products, and complete legal documents. When the 2024 Land Law takes effect, new real estate projects must complete construction in accordance with the new planning and design before being sold or leased.
Forecasting the market in the coming time, Mr. Dinh shared that the recovery process of the real estate market will continue to progress in a positive direction. All changes will take place gradually, stably based on the previous recovery and accumulation momentum, along with the support of economic growth and urbanization. In which, apartments 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 a “probing” process.
“In particular, the draft decrees guiding the implementation of the Land Law, the Housing Law, and the Law on Real Estate Business officially effective from July 1, 2024 will be a “catalyst” to promote the reaction process of the groups. above issues on the market in order to produce clearer recovery results,” said Mr. Dinh.
