Many experts believe that the pilot mechanism for businesses to negotiate land use rights from people to carry out commercial housing projects will untie projects, increase housing supply, and contribute to solving the shortage of housing supply.
The Government also proposed that the National Assembly agree to allow businesses to implement commercial housing projects on the land area of the facility that had to be relocated due to environmental pollution. In the photo: the prime land of the Hanoi Soap Factory in the Cao - Xa - La Industrial Cluster at 233, 233B, 235 Nguyen Trai Street (Thanh Xuan District, Hanoi) after many years of relocation, it still does not cause waste of land resources - Photo: DANH KHANG
The draft resolution on this pilot mechanism has just been commented on by the National Assembly and is expected to be approved at the session that will end at the end of November.
However, given the current state of housing supply in the market focusing on the mid-range, high-end, and luxury apartment segments, some opinions also suggest that the pilot mechanism should have a clear direction, prioritizing the agreement to receive land use rights to develop the affordable housing segment and affordable apartments to meet the real housing needs of the majority of people.
Hundreds of real estate projects waiting to be resolved
In March 2024, at the meeting of the Prime Minister's Working Group on reviewing, urging, and guiding the removal of difficulties and obstacles in the implementation of real estate projects, the Ministry of Construction said that in Ho Chi Minh City, there were 143 real estate projects, Hanoi 246 projects, Hai Phong 4 projects, Binh Dinh 16 projects, Can Tho 34 projects... waiting for the working group, ministries, branches and localities to remove obstacles.
It can be seen that across the country there are still hundreds of real estate projects that are "frozen".
Many of these projects cannot be implemented because they do not have residential land. Investors who spend money to buy land according to the planning cannot build the project because they lack... 1m2 of residential land.
In addition, in the draft pilot resolution being submitted to the National Assembly for consideration and approval, the Government also proposed that the National Assembly agree to allow enterprises to implement commercial housing projects on land areas of establishments that must be relocated due to environmental pollution, establishments that must be relocated according to construction planning and urban planning.
Right in Hanoi, many manufacturing facilities pollute the environment in the inner city area. After moving their factories to suburban districts or neighboring provinces, many "golden lands" that have been abandoned for decades have been revealed.
Typically, the cluster of three factories Sao Vang rubber factory, Hanoi soap factory, Thang Long tobacco factory with a total area of about 150,000m2 after being relocated to the suburbs and left fallow for many years.
Among them, the "golden land" of the Hanoi Soap Factory has been relocated for many years but until now grass is still growing due to the lack of a mechanism to convert it to land for commercial housing construction.
A project on Mai Chi Tho Street, An Phu Ward, Thu Duc City, Ho Chi Minh City - Photo: NGUYEN VAN TRUNG
Businesses and landowners are happy
Speaking to Tuoi Tre, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that the pilot mechanism allowing businesses to negotiate the right to use other land, not residential land, from people to do commercial housing projects adds another method of accessing land for businesses investing in real estate.
This mechanism also ensures the right to negotiate of land users, reducing complaints in land acquisition for project implementation.
"Although the current land recovery mechanism is much better than before (the compensation level is more satisfactory and more market-oriented), it is not as good as the pilot mechanism for businesses and people with land use rights to negotiate land transfer," Mr. Chau emphasized.
For example, in District 3, Ho Chi Minh City, in recent years, there have been 48 old apartment buildings. Up to now, there have been 5 old apartment buildings where businesses have agreed to buy back 100% of the old apartments from the residents to carry out the project of building new commercial apartment buildings, but there have been no complaints because this is a mechanism of fair buying and selling.
There are still 43 old apartment buildings that have not been renovated yet because we do not have a mechanism to encourage investors to negotiate to buy back old apartments.
According to Mr. Chau, many commercial housing projects are currently stuck because businesses have land that is not residential land, so construction cannot be carried out.
While the housing market is lacking in housing product supply (due to a shortage of housing projects), if the National Assembly pilots allowing businesses to negotiate the purchase of non-residential land for commercial housing projects, the number of licensed commercial housing projects will increase, thereby increasing the supply of housing products in the coming time.
Mr. Nguyen Huu Cuong, Chairman of the Hanoi Real Estate Club, commented that the pilot policy of allowing businesses to negotiate to buy non-residential land from people to build commercial housing projects is an open direction for the development of the housing market.
This mechanism also allows real estate businesses to cooperate with land users through transferring land use rights and contributing shares in land to implement commercial housing projects.
This will increase the land fund for housing construction, meeting the housing needs of the people. "Allowing businesses to negotiate directly and buy back land use rights from people will certainly be much cheaper than organizing bidding and auctioning land use rights to build commercial housing projects. Direct negotiation between the two parties will avoid "virtual prices" in land auctions," Mr. Cuong commented.
Many real estate experts also expressed the view that the pilot project allowing businesses to negotiate to buy agricultural land and other land from people to build commercial housing would also prevent the current waste of land in urban areas.
In fact, there are many non-residential land plots in Hanoi and Ho Chi Minh City that have been abandoned for many years. Piloting the agreement for repurchase and conversion will help land be used more effectively, while the State still collects land use fees and taxes, and people have more options to buy houses.
Encourage low-cost commercial housing
Although supporting the pilot project allowing enterprises to negotiate the right to use non-residential land for commercial housing, many experts believe that the pilot project allowing enterprises to negotiate the purchase of non-residential land for commercial housing projects should prioritize affordable commercial housing projects that are suitable to the local situation.
Mr. Dinh Minh Tuan, Southern Regional Director of Batdongsan.com, recommends using this pilot mechanism to develop affordable housing and low-cost commercial apartments to increase housing supply to meet the real housing needs of the majority of people.
Mr. Tuan believes that increasing housing supply through the pilot mechanism must be consistent with practical needs. If there is no clear direction, businesses, after agreeing to buy land from people, will only focus on developing high-priced commercial housing, about 50 million VND/ m2 , to gain high profits as in the past, then the goal of balancing housing supply and demand in the market will not be achieved.
Another note according to Mr. Tuan is that the pilot program for businesses to buy non-residential land from people to build commercial housing projects needs to avoid the situation where some investors with financial potential take advantage of this regulation to buy land and leave it there, waiting for the price to increase to transfer it to other businesses.
It is necessary to add regulations that businesses that negotiate and buy land from people must implement commercial housing projects within 2-3 years, otherwise they must transfer the land to another investor to do the project, otherwise the land will be reclaimed.
The duo of resolutions will remove obstacles for the real estate market.
In addition to the pilot resolution allowing enterprises to negotiate the transfer of non-residential land from people to build commercial housing projects, the Government also plans to submit to the National Assembly for consideration and approval a specialized resolution to handle land-related problems, relocation of polluted factories, rearrangement of state agency headquarters, projects facing inspection, audit, investigation, and court rulings.
This pair of resolutions will "revive" the assets currently in hundreds of suspended housing and urban projects across the country. With the mechanism from the National Assembly's resolutions, businesses will have a basis to complete project investment procedures, continue to implement housing projects, increase housing supply, and contribute to balancing market supply and demand.
Minister of Natural Resources and Environment DO DUC DUY:
"Projects made wrong by local leaders will be rescued"
Regarding the thematic resolution, the directive from the competent authority is that projects that are stuck due to wrongdoings by local authorities and leaders will be resolved so that enterprises can continue to implement the project. With this type of project, most local leaders who have violated the law have been punished.
As for projects that businesses intentionally make mistakes, they will be revoked to avoid wasting land resources.
Still wondering about the terms and conditions
Apartment project on Le Van Luong street, Nhon Duc commune, Nha Be district, Ho Chi Minh City - Photo: NGUYEN VAN TRUNG
A real estate project investor in Ho Chi Minh City said that along with the Government submitting the pilot resolution to the National Assembly for consideration and approval, Ho Chi Minh City is also reviewing the number of enterprises with land plots that are stuck with regulations and have not been able to implement projects. According to the review, this enterprise alone has nearly 20 land plots in Binh Chanh District, District 8, Thu Duc... that are stuck.
This person said that most of the land is agricultural land, non-agricultural land, not residential land, and the enterprise has completed the transfer from the people, but because the law does not allow it, the project cannot be carried out.
The real estate market has been difficult in recent times, but businesses cannot use available land resources to do more projects, and have a source of supply to sell to recover money, so it is very difficult. Meanwhile, businesses still have to pay bank loan interest, making difficulties compound.
Reading the draft resolution that is about to be considered for approval, this business believes that this is a necessary policy to remove difficulties for businesses and the market and will soon have the opportunity to be considered for approval.
However, a concern of businesses is when the draft resolution stipulates the conditions for implementing commercial housing projects through agreements on receiving land use rights or having land use rights.
Accordingly, real estate business organizations implementing commercial housing projects through agreements on receiving land use rights or having land use rights as prescribed in this resolution are allowed to change the purpose of use for one or more types of land to implement the project, including agricultural land; non-agricultural land that is not residential land; residential land and other land in the same plot of land in the case of agreements on receiving land use rights.
This regulation may be interpreted as saying that enterprises that already have land can change the purpose of agricultural land and non-agricultural land that is not residential land to do projects. However, when receiving a transfer from the beginning, they must transfer plots of land that have both residential land and other land in the same plot.
Thus, if the resolution is passed and implemented as understood by the enterprise, the removal will not be thorough.
This person further explained that currently, in addition to enterprises with available land funds under their business use rights, there are cases where enterprises previously allowed individuals in the company to buy agricultural land but have not yet put it into the business use rights due to legal problems; or there are enterprises with enough resources that want to receive land transfers from people to do projects.
If understood as above, businesses can only buy areas with both residential land and other land, which will limit the business's access to land resources.
"The Minister of Natural Resources and Environment recently also pointed out to the National Assembly the inadequacy when in reality most real estate projects are implemented on land that is not originally residential land and the detailed planning of the project also includes many different types of land such as residential land, traffic land, green land... so the provisions of the Land Law cannot be implemented in practice. Therefore, the drafting agency needs to reconsider this," he suggested.
Should remove a phrase
Sharing the same concern, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that the regulation should remove the phrase "for cases of agreement on receiving land use rights" in the regulation on residential land and other land in the same plot of land to avoid misunderstanding when implementing the resolution.
This means that enterprises that already have land or have received a transfer from the beginning can use three types of land: agricultural land; non-agricultural land that is not residential land; residential land and other land on the same plot of land to do commercial housing projects as long as they comply with the planning, land use plan and other criteria in the resolution.
"This is the only way to clear the bottleneck and free up land resources," said Mr. Chau.
Source: https://tuoitre.vn/coi-troi-cho-cac-du-an-bat-dong-san-20241125080112795.htm
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