Three new laws will untie the “bottlenecks” for the market, Hanoi agrees in principle to allow the continued implementation of Thanh Ha A, B and My Hung Urban Areas, investors who do not publicly disclose projects that are “loaned” to banks can be fined up to 1 billion VND… are the latest real estate news.
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| For the Vietnamese real estate market to truly stabilize and develop again, it is necessary to “clear the gap” in which it is especially necessary to “clear the gap between demand and supply” – so that the currently blocked supply and demand can meet. (Photo: Hai An) |
Three new laws will untie the "bottlenecks" for the market
In the coming time, when the Land Law 2024, Housing Law 2023, Real Estate Business Law 2023 will officially take effect from August 1, 2024, 5 months earlier than the previous decision, experts say the real estate market will be promoted and developed more, many "bottlenecks" will also be removed.
Assessing the impacts of the Laws related to Real Estate that have just been approved by the National Assembly and officially come into effect from August 1, 2024, Associate Professor, Dr. Tran Dinh Thien, a member of the Prime Minister's Economic Advisory Group, said that the new Laws will certainly have a positive impact, contributing to promoting the recovery and development of the market. Because the Laws were drafted in the context of the market facing difficulties and problems, the goal is to thoroughly resolve these difficulties and problems.
Sharing the same view, Dr. Can Van Luc, Chief Economist of BIDV and Director of BIDV Training and Research Institute, said that accelerating the official effective date of the 3 Laws by 5 months compared to the regulation will contribute positively to the real estate market. This helps to quickly resolve problems related to land valuation, site clearance, resettlement, and implementation of the social housing project. Thereby, contributing to promoting the development of the market.
From an economic perspective, Dr. Vo Tri Thanh, Director of the Institute for Brand Strategy and Competition, believes that the Laws, when effective early in time, will promote economic growth, as they contribute 12-14% of the national GDP. Resolving difficulties for the real estate market is for the entire economic recovery process.
“When all three Laws officially come into effect, they will create a new legal corridor, removing most of the “bottlenecks” for the market when 70-80% of the existing problems are due to legal issues. At the same time, they will create a foundation for the real estate market to develop in a safe, healthy and sustainable direction. However, to ensure effectiveness in the implementation process, it is necessary to speed up the completion of the Decrees on the basis of ensuring quality content, closely following the market,” emphasized Dr. Vo Tri Thanh.
According to Associate Professor, Dr. Tran Dinh Thien, for the Vietnamese real estate market to truly stabilize and develop again, it is very necessary to “clear the gap”, in which it is especially necessary to “clear the gap between demand and supply” – so that the currently blocked real estate supply and demand can meet, and the market can “change its color”. Among them, there are several things that need to be done, truly urgent.
Firstly, institutional problems must be resolved quickly and decisively, so as not to hinder the market's recovery. Secondly, resources must be mobilized and measures must be taken to promote and create opportunities for both real estate businesses and customers/investors to have access to favorable capital sources with truly supportive interest rates, creating new growth and development engines.
Third, consider solutions to improve the minimum wage so that people have the opportunity to increase their income, thereby increasing demand. Fourth, continue to implement solutions to attract investment flows to maintain and promote the industrial, commercial, tourism and resort real estate segments.
Most importantly, it is important to note that solutions need to be implemented synchronously, and any bottlenecks that have the opportunity to be resolved should be resolved immediately to avoid losing the market's recovery momentum. Unblocking capital for the real estate market is the key step.
According to Dr. Can Van Luc, it is necessary to soon issue detailed guidance documents on the law to ensure that these regulations come into practice soon, only then will it be meaningful to push the effective date of the new Laws sooner; soon have solutions to restore the corporate bond market to reduce financial pressure on real estate businesses; soon have solutions to develop social housing as directed by the Secretariat; soon start building an information database to ensure there is enough basis for land valuation and other related activities...
Regarding this issue, Dr. Vo Tri Thanh also said that it is necessary to perfect the legal system with streamlined processes and procedures, creating favorable conditions for market participants to access but still ensuring that it is a tool to manage and monitor market activities.
Regarding fiscal and monetary support policies, they have not been as expected. In particular, support for the socio-economic recovery program needs to be fairly allocated to business sectors, including real estate project investors and secondary investors in the real estate market.
Enterprises need to make efforts to restructure and develop affordable real estate to meet people's needs. For the social housing segment, there needs to be a new perspective, towards the direction of important national infrastructure.
Hanoi: Agree in principle to allow continued implementation of Thanh Ha A, B Urban Area and My Hung Urban Area
The Hanoi People's Committee agreed in principle to allow Cienco 5 Real Estate Development Joint Stock Company to continue implementing the Thanh Ha A, Thanh Ha B and My Hung Urban Area Investment Projects so that the investor can complete the planning adjustment procedures and complete the handling of violations of construction order in Thanh Ha Urban Area, as a basis for considering adjusting the investment policy of the projects according to regulations.
On July 17, the Hanoi People's Committee sent a document to the Departments of Planning and Investment, Construction, Planning - Architecture, Natural Resources and Environment; People's Committees of Ha Dong and Thanh Oai districts; Traffic Construction Corporation 5 - JSC and Cienco 5 Real Estate Development Joint Stock Company on the implementation of investment projects for counterpart projects of the Southern axis road construction investment project of Ha Tay province under the BT form.
In the document, the Hanoi People's Committee requested Cienco 5 Real Estate Development Joint Stock Company to contact the Department of Planning and Architecture for guidance on preparing, submitting for appraisal and approval of adjustments to the detailed planning of the above-mentioned urban areas according to regulations.
At the same time, the Hanoi People's Committee requested the Department of Construction to urgently review violations of urban construction order in Thanh Ha A and Thanh Ha B urban areas according to the direction of the Party Committee of the City People's Committee in Notice No. 190-TB/BCSĐ dated May 3, 2024 and of the City People's Committee in Notices: No. 279/TB-VP dated June 13, 2023, No. 502/TB-VP dated October 31, 2023, and advise on the implementation of items and works in the urban area to ensure compliance with legal regulations.
In addition, the Departments of Planning and Investment, Construction, Planning - Architecture, Natural Resources and Environment and related City Departments and branches are requested to guide Cienco 5 Real Estate Development Joint Stock Company to implement the next steps according to regulations.
Investors who do not disclose bank-sponsored projects may be fined 1 billion VND
The Ministry of Construction proposed a fine of 800 million to 1 billion VND for investors who do not publicly disclose information about mortgaged real estate projects.
The above fine level is being consulted by the Ministry of Construction in the draft Decree regulating administrative sanctions for construction violations.
Specifically, according to the draft Decree, the Ministry of Construction proposed a fine of 800 million - 1 billion VND for 4 acts.
Firstly, the investor does not disclose information about mortgages of houses, construction works, floor area in the works, land use rights, and real estate projects put into business;
Second, putting real estate into business without meeting all the conditions;
Third, transferring real estate business contracts of projects that do not meet the conditions;
Fourth, transferring all or part of a project that does not fully meet the conditions. For this act, the investor will also have the project in violation suspended from 3 to 6 months.
In addition to the fine, the investor must also suffer an additional penalty of suspending real estate business for 3-6 months for projects with violations.
For the act of signing capital mobilization documents and implementing capital mobilization for housing development without sufficient conditions, enterprises can be fined 600-800 million VND. The current Decree 16 does not have a fine frame at this level.
In fact, in recent years, many real estate projects have been mortgaged by investors, affecting the rights of home buyers. People are miserable because they are not granted certificates of land use rights, house ownership rights and other assets attached to land (pink books).
In Ho Chi Minh City, in 2023, according to statistics from the Department of Natural Resources and Environment (TN-MT), the city has 60 housing projects mortgaged to banks by investors. Of these, 41 projects were mortgaged from 2016 - 2023 and many projects were mortgaged from 2008 - 2011, causing home buyers to not be granted pink books.
There are 3 types of mortgage projects that project investors use: mortgage of land use rights (land); mortgage of land use rights and future assets attached to land (land and houses); mortgage of future assets attached to land (houses on land).
According to regulations, before applying for a pink book for home buyers, investors must release the mortgage and submit the original land use right certificate to the Department of Natural Resources and Environment for adjustment and conversion of land use form to common use form.
However, in reality, there are investors who do not perform mortgage cancellation, causing the project to have its pink book "suspended" for a long time. For example, at the High-rise Housing project combining commercial services and hotels at land lot HH2, land use rights auction area of Xuan La ward, Tay Ho district, Hanoi (commercial name of apartment project D'.ElDorado 2).
In a document responding to residents' comments at the end of 2023, the Hanoi People's Committee said that in December 2020, the investor submitted documents on the appraisal of legal documents to issue certificates to project home buyers. However, the project is currently mortgaged at the bank.
Therefore, in June 2022, the Hanoi Land Registration Office issued a notice of returning the dossier as ineligible for settlement because the project had not been released from mortgage according to regulations.
In the middle of last year, the Land Registration Office held a meeting with the building management board and the investor to discuss and agree on the above contents.
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| Da Nang city at night. (Source: Vietnamnet) |
Da Nang plans to build a tunnel across the Han River
The People's Committee of Da Nang City has just reported on the implementation of major projects according to Resolution No. 25 of the People's Council of Da Nang City such as: Relocating the railway station, investment plan and roadmap for the tunnel project across the Han River, the tunnel route through Da Nang airport...
In particular, the preparation for investment in the construction of the Han River crossing project (Han River tunnel) is included in the city planning for the period 2021-2030, with a vision to 2050, approved by the Prime Minister in Decision 1287 with investment phases from 2031-2045.
This project will connect Dong Da – Tran Phu street area, Hai Chau district to Van Don – Tran Hung Dao street, Son Tra district.
According to the report, Da Nang City has directed the Da Nang Department of Transport to propose capital allocation in 2024 to carry out investment preparation work... The Department of Transport has proactively worked with experts in the field to research options as well as review and update related zoning plans to ensure consistency.
On that basis, the Department of Transport will develop a survey plan to serve the selection of a design consultant to prepare a project pre-feasibility study report.
Currently, the Department of Transport is coordinating with relevant units to organize the appraisal and approval of the budget for the investment preparation task. It is expected to complete the selection of consultants to prepare the project's pre-feasibility study report after 3 months from the date of investment preparation capital allocation.
According to the People's Committee of Da Nang City, the next implementation plan is to complete the selection of consultants for the pre-feasibility study report after 3 months from the date of investment preparation capital allocation (expected in September 2024); expected to complete and submit to competent authorities for appraisal of the project's pre-feasibility study report in December and complete the feasibility study report in August 2025.
The People's Committee of Da Nang City proposed that the People's Council of Da Nang City agree on the policy of allocating capital to prepare for investment in the Han River crossing project in the medium-term capital plan for the period 2021-2025 and the capital plan for 2024 as a basis for implementing the next steps.
![[Photo] General Secretary To Lam and Prime Minister Pham Minh Chinh attend the first Congress of the National Data Association](https://vstatic.vietnam.vn/vietnam/resource/IMAGE/2025/3/22/5d9be594d4824ccba3ddff5886db2a9e)
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