The Law on Real Estate Business 2023 (amended) effective from January 1, 2025 stipulates that land use rights cannot be transferred to individuals who build houses themselves, divide plots of land into plots for sale in wards, districts, and cities of special-class, class I, II, and III urban areas and are subject to auctions of land use rights to invest in housing construction projects according to the provisions of the Land Law. Accordingly, the new regulation will not allow subdivision and sale of plots of land in a total of 105 cities and towns nationwide.
Many people are concerned that this will affect land prices and recently, in many localities, investors have appeared to "hunt" for land to anticipate the effective date of the 2023 Real Estate Business Law. However, in the long term, experts agree that tightening the subdivision and sale of land will help the market become transparent and eliminate virtual fever.
The subdivision and sale of land in large cities will be banned after the 2023 Real Estate Business Law (amended) comes into effect.
A financial and real estate expert said that this provision of the law aims to limit the "virtual fever" of land plots, contributing to stabilizing the real estate market. At the same time, it encourages the development of projects with synchronous and modern technical infrastructure. In particular, it is to protect home buyers and limit land disputes.
According to this expert, the regulation prohibiting the subdivision and sale of land only applies to residential land, not to non-agricultural land. Therefore, people can still build houses on their own land without going through a subdivision project. "The ban on subdivision and sale of land in 105 cities and towns is a measure aimed at developing a healthy and sustainable real estate market and protecting consumers. However, there needs to be close coordination between authorities to ensure effective implementation of this regulation," the expert commented.
Director of Tin Thanh Company, Mr. Doan Quoc Duyet, said that the ban on implementing projects of dividing land into lots and selling them in localities and how to ban them must wait until the law officially comes into practice. "Currently, while interest rates are very low, the supply of real estate is limited, not enough to meet the needs of buyers, so the information about restricting the division of land into lots and selling them has contributed to "heating up" the market because many people are worried that prices will increase again and are rushing to buy, but to say that there is a land fever is not necessarily true" - Mr. Duyet commented.
Mr. Tran Khanh Quang, General Director of Viet An Hoa Real Estate Company, also said that the regulation on land subdivision and sale in the 2023 Law on Real Estate Business only makes divided land plots more interested and traded, but it is unlikely to cause a fever like recent rumors. "In the near future, land subdivision and sale will be more restricted in urban areas to control the real estate market, limit virtual fever, reduce "ghost" projects, especially to protect the rights of buyers so that they are no longer "herded" and mistakenly buy land plots in illegally divided projects or buy and then abandon them, causing a waste of resources" - Mr. Quang said.
According to Mr. Quang, this regulation forces businesses and individuals doing real estate business to set up projects, apply for approval according to local planning, and sell houses with land use rights, but are not allowed to divide and sell plots as is currently the case. Individual households are still allowed to separate plots and transfer plots on existing residential land when they meet the conditions. "To put it simply, there are currently 3 cases of land division: selling land without selling houses, individuals doing real estate business with a 1/500 plan approved for subdivision, and individuals dividing plots on existing land. According to the new regulation, companies doing projects and individuals doing real estate business with a 1/500 plan will be prohibited from dividing and selling plots" - Mr. Quang said and believed that this law will help reduce speculation and only those with real housing needs will dare to buy because when a housing project is established, the price of houses and land will be higher than that of land, and at the same time, it will avoid the case of abandoned land.
Will rural land prices increase?
According to some experts, the drawback and impact of tightening the subdivision and sale of land in special urban areas I, II, III is that it will reduce supply, leading to investment in land from area IV (urban land type 4) onwards and rural land will be more attractive, indirectly stimulating prices in this area to increase.
Source: https://nld.com.vn/het-thoi-gay-sot-ao-196240514210807579.htm
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