New policy removes obstacles for commercial housing projects

From April 1, investors are allowed to negotiate the right to use agricultural and non-agricultural land for commercial housing projects. In the photo: A corner of the Ho Tram urban area project, where many commercial housing projects are concentrated.

Businesses and people benefit

Mr. Khai Quoc Binh, Deputy Director of the Department of Construction, said that currently, investors are only allowed to carry out commercial housing projects when they have the right to use residential land, according to the 2014 Housing Law. However, according to Resolution 171/2024/QH15, from April 1, project investors are allowed to negotiate the right to use agricultural land, non-agricultural land that is not residential land, and other land in the same plot to carry out commercial housing projects.

The condition for the project to pilot this policy is that the area or plot of land must be in an urban area, in accordance with the district-level land use planning. The pilot project must have a maximum of 30% of additional residential land area during the planning period (compared to the current land use status) according to the land allocation and zoning plan of the provincial planning until 2030.

The provincial People's Committee will consider and grant licenses to real estate business organizations to receive land use rights transfers. Along with that, real estate business enterprises must meet the conditions on land, housing law, real estate business, and investment.

In case the land plot or area is managed by a State agency or organization but cannot be separated into an independent project, it will be included in the common land area for project establishment and the State will reclaim it and transfer it to the investor without auction or bidding. In case the investor receives the transfer of land use rights originating from national defense and security land, written approval from the Ministry of National Defense and the Ministry of Public Security is required.

According to statistics from the Department of Construction, Ba Ria - Vung Tau still has a number of projects that have to stop due to regulations that there is no residential land in the project. "Resolution 171/2024/QH15 on piloting the implementation of commercial housing projects through agreements to receive rights or have land use rights is very timely and important to solve problems for the real estate market, in line with the current development stage", Mr. Khai Quoc Binh emphasized.

According to analysis by real estate experts, the pilot agreement on receiving the right to use agricultural land, non-agricultural land that is not residential land, and other land in the same plot for commercial housing projects not only creates favorable conditions for investors but also benefits people a lot. Accordingly, people have the right to transfer more flexibly, at prices more suitable to the market.

Commercial housing project invested by DIC Group.

Untangling the bottlenecks for real estate projects

Immediately after Resolution 171/2024/QH15 was passed by the National Assembly, real estate enterprises were very sympathetic and carefully prepared the enterprise's capacity profile and legal documents of the land planned for the commercial housing project to be ready to carry out legal procedures when the Resolution was piloted.

Mr. Le Viet Lien, General Director of Ba Ria - Vung Tau Housing Development Joint Stock Company (HODECO) analyzed that the current Land Law requires that when implementing a commercial housing project, enterprises must have 100% residential land. This is a barrier because land locations suitable for urban residential land development planning but have not yet had ^any residential land granted before will not be able to apply for investment policy approval, leading to enterprises being unable to proactively receive the transfer of land use rights that are not residential land to have land funds for project development. Meanwhile, most of the land for project development currently falls into this case.

Resolution 171/2024/QH15 allows enterprises to negotiate the right to use agricultural land, non-agricultural land that is not residential land, and other land in the same plot for commercial housing projects. This is a suitable policy, removing long-standing bottlenecks that will allow real estate enterprises to be proactive in land preparation, more easily access and develop commercial housing projects, reduce investment procedures, speed up project implementation, contribute to increasing supply, reducing selling prices, bringing residential land prices to a more suitable price for the market. "Of course, real estate enterprises must also accept the transfer of land use rights of all types of land in areas that are consistent with the planning and urban development orientation approved by competent authorities," Mr. Lien emphasized.

Some other real estate enterprises said that investors still have to wait until April 1, after the Government issues a Decree detailing and guiding the implementation of the National Assembly's pilot resolution, and then the People's Council and People's Committee at the provincial level specify the list of pilot projects for land plots that have agreed to receive land use rights or currently have land use rights to implement commercial housing projects in the locality.

Article and photos: QUANG VU

Source: https://baobariavungtau.com.vn/kinh-te/202503/chinh-sach-moi-go-vuong-cho-du-an-nha-o-thuong-mai-1038229/