The summary report on the question and answer issue sent by the Secretary General of the National Assembly Bui Van Cuong to the delegates recently assessed that the Government has taken many actions and issued many documents to remove difficulties for this market, such as telegrams and documents urging the Prime Minister to request ministries and localities to restructure the real estate market. However, this market, including the housing market, is still facing difficulties and bottlenecks due to legal procedures, land funds and investment capital.
Not approved due to lack of "residential land"
Some administrative procedures for investment are cumbersome and cause obstacles, market segments are still skewed, and credit capital invested in this market still has many potential risks. Due to difficulties, real estate enterprises have to stop investing and constructing projects, and this also causes difficulties for contractors, material suppliers and many other industries. "Legal problems related to land, such as determining land prices, land use fees, site clearance or regulations on selecting investors that overlap with regulations on investment, bidding, land... are major barriers to the recovery and development of the housing market" - the appraisal agency assessed.
In Ho Chi Minh City, in addition to more than 100 real estate projects facing difficulties that have been and are being studied for resolution, the Department of Planning and Investment recently reported to the City People's Committee on the implementation of investment approvals for real estate projects in the area.
Accordingly, out of 117 project dossiers requesting approval of investment policies that this agency is handling, 62 projects do not meet the conditions to be investors of commercial housing projects (NƠTM) because they do not have residential land or do not receive the transfer of all residential land according to the provisions of the 2014 Housing Law.
Therefore, the Department of Planning and Investment recommended that the Ho Chi Minh City People's Committee not approve the investment policy because it does not meet the provisions of the Investment Law and the Housing Law. This makes real estate enterprises worried because it could cause the project implementation process to be blocked.
Removing legal obstacles will help real estate projects be implemented smoothly, promoting market development. Photo: HOANG TRIEU
According to MSc. Nguyen Nhat Khanh, lecturer at the Faculty of Law, University of Economics and Law (VNU-HCMC), from a legal perspective, not approving the investment policy of these 62 projects is completely appropriate. However, from an economic perspective and the development of the real estate market, this has many points that are not really appropriate.
Because to implement a New Rural Project, enterprises must have a large enough land fund, but in reality, the number of projects with 100% residential land or a part of residential land accounts for no more than 5% of the total number of New Rural projects on the market.
Therefore, the above-mentioned strict regulations on land use form cause many difficulties when enterprises propose to build NƠTM projects. If we do not find a way to solve them, hundreds of thousands of billions of VND invested in implementing these projects may be "stuck", causing waste of investment capital as well as not solving the problem of housing supply.
To solve the above projects, according to Master Nguyen Nhat Khanh, there needs to be legal and management solutions. From a legal perspective, the National Assembly needs to soon study and amend the regulations on land use forms to implement NƠTM projects in the Housing Law in the direction of not limiting the forms of land use for projects instead of only residential land as at present, but must ensure compliance with local land use planning and construction planning.
"From a management perspective, in the immediate future, the Ho Chi Minh City People's Committee can support the investors of these 62 projects through organizing bidding for projects using land to select investors who meet the conditions to implement the NƠTM project (when winning the bid, the State will allocate or lease land to implement the NƠTM project) or convert the purpose from the NƠTM project to social housing so as not to be bound by the form of land use" - Master Khanh expressed his opinion.
Many regulations need to be revised
In the official dispatch "Proposing to amend Point b, Clause 1, Point a, Clause 4 and Clause 6, Article 128 of the draft Land Law (amended) to create conditions for investors to negotiate on receiving land use rights for land types suitable for planning to implement NƠTM projects" sent to the National Assembly, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, proposed to amend Point b, Clause 1, Point a, Clause 4 and Clause 6, Article 128 of the draft Land Law (amended) to create conditions for enterprises and investors to negotiate on receiving land use rights or having land use rights for land types or having land use rights suitable for land use planning, urban planning, construction planning to implement NƠTM projects.
Mr. Chau also pointed out that the regulation at Point b, Clause 1, Article 128 of the draft Land Law (amended) only allows agreements on receiving the right to use residential land or must have the right to use residential land or residential land and other land, so it has a narrower content than the current regulations in the 2013 Land Law, thus not creating favorable conditions for investors to access land, not ensuring the legal and legitimate rights and interests of people using the land.
According to Mr. Chau, if this regulation is passed, in the next 10 years, investors will no longer be allowed to "agree on receiving the right to use residential land and other land" to implement the New Rural Development project, so there will be no case where any investor meets the condition of "having the right to use residential land and other land" as prescribed in Clause 6, Article 128 of the draft Land Law (amended).
Regarding the problems with future housing, at the workshop to provide comments on the draft Law on Real Estate Business (amended) recently organized by the National Assembly's Economic Committee and the Ministry of Construction, Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong said that in the city, when putting into business housing, future construction projects have arisen many problems. Accordingly, the competent authority must have a document approving the project that is eligible to sell future housing, leading to many consequences, especially the issuance of certificates of ownership of NƠTM buyers when referring to the provisions of the Land Law.
According to Mr. Bui Xuan Cuong, Clause 2, Article 25 of the draft Law on Real Estate Business (amended) stipulates conditions for houses and construction works formed in the future to have one of the following types of land use documents (land allocation decision, land lease; land lease contract; land use right certificate; certificate of house ownership and land use right; certificate of land use right, house ownership and other assets attached to land...).
Meanwhile, according to the current Land Law, land users are allowed to transfer, lease, sublease, donate, mortgage, and contribute capital to land use rights when they have a certificate.
In case the land user is allowed to delay the performance of financial obligations or is allowed to owe financial obligations, he/she must complete the financial obligations before exercising the rights. That is, in case the investor is allocated land but does not complete the financial obligations regarding land use fees, he/she cannot exercise the rights of the land user according to the provisions of the land law, including the right to transfer land use rights.
Therefore, the Ho Chi Minh City People's Committee recommends that the drafting committee study and adjust the content on land conditions for the approval procedure for future housing and construction works to be put into business as "the investor has completed financial obligations and has a land use right certificate". This is to limit the occurrence of legal problems in the next step, especially the issuance of certificates to people.
Allow planning adjustment after transfer
Vice Chairman of the Ho Chi Minh City People's Committee Bui Xuan Cuong said that the draft Law on Real Estate Business stipulates that the principle of transferring real estate projects is that the transfer of all or part of the project must ensure that the project's objectives and planning do not change, which is "not favorable" because many investors, after receiving the project, need to adjust the planning to make the project better. According to Mr. Bui Xuan Cuong, the project adjustment aims to optimize the project and the final key is to increase the land use coefficient and comply with the provisions of the Law on Urban Planning. Investors adjust according to the regulations and incur additional financial obligations. The Ho Chi Minh City People's Committee proposed to revise this regulation so as not to conflict with the provisions of the Law on Urban Planning during the implementation process, otherwise it will affect the implementation process after receiving the project transfer.
Seminar "Removing legal obstacles for real estate"
On November 9, Nguoi Lao Dong Newspaper organized a seminar on "Resolving legal obstacles for real estate" to listen to and absorb the opinions of guests, thereby finding solutions to remove bottlenecks, unclog the flow for the real estate market, promote stable and sustainable economic growth...
(*) See Lao Dong Newspaper from issue dated November 8
Source: https://nld.com.vn/kinh-te/tap-trung-go-kho-cho-bat-dong-san-go-vuong-ve-phap-luat-dat-dai-20231108212955903.htm
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