The State will intervene in the real estate market if prices fluctuate sharply; Identity of the owner of the gold-plated glass building in Hanoi
Landlords in Ho Chi Minh City are not required to set up businesses; Interest rates for social housing buyers may be reduced by 3-5%; Hanoi suburbs are bustling with land auctions; Hai Phong announces social housing prices, the lowest being around 14 million VND/m2.
Those are some of the highlights of the real estate market this past week.
The state will intervene in the real estate market if prices fluctuate sharply.
The Ministry of Construction will have to assess the real estate market situation as a basis for proposing market regulation, this is a regulation set forth in Article 34, Decree 96/2024/ND-CP and has been effective since August 1.
Notably, according to the provisions of Clause 2, the proposal of regulatory measures will be implemented when the real estate transaction price index fluctuates by more than 20% in 3 months or the market has changes that affect socio-economic stability.
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| The State will intervene in the market if the real estate transaction price index fluctuates by more than 20% in 3 months. Photo: Le Toan |
Previously, Article 78 of the 2023 Law on Real Estate Business clearly stated the measures that the State takes to regulate the real estate market, including:
Adjusting planning, land use plans, construction plans, programs, urban and housing development plans to implement real estate projects.
Adjusting supply and structure of real estate market through adjusting targets, scale, progress, and product structure of real estate projects.
Tax payment extension for entities operating in the real estate business sector facing special difficulties in each period.
Support preferential interest rate loans for customers and real estate businesses for types of real estate that need support and priority for development.
Manage financial and credit policies for the real estate business sector in accordance with market conditions in each period.
Implement other policies to regulate the real estate market in each period.
Interest rates for social housing buyers may decrease by 3-5%
At the regular press conference on August 5, Deputy Minister of Construction Bui Xuan Dung said that the State Bank of Vietnam (SBV) is seeking opinions from ministries and branches to adjust the content of the VND120,000 billion credit package program.
Accordingly, the changes will help social housing buyers get medium and long-term loans with interest rates 3-5% lower than the market, instead of 1.5-2% as at present.
“The Ministry of Construction has agreed with this proposal to facilitate buyers to access preferential capital sources,” Mr. Dung affirmed.
The Deputy Minister of Construction added that the Prime Minister also agreed with the proposal of the State Bank of Vietnam and requested that this agency soon complete and submit for approval a resolution adjusting the content of the 120,000 billion VND credit package program.
New points in regulations on renovation of old apartments
In Article 28, Decree 98/2024/ND-CP on renovation and reconstruction of apartment buildings effective from August 1, 2024, many difficult "problems" in ensuring people's rights have found solutions.
For households on the first floor, owners will be compensated with resettlement apartments with an area equal to 1-2 times the usable area of the demolished apartment. This is one of the regulations in Article 28, Decree 98/2024/ND-CP on renovation and reconstruction of apartment buildings, effective from August 1, 2024.
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| Many old apartment buildings and collective housing areas in Hanoi and Ho Chi Minh City have seriously degraded. Photo: Le Toan |
In addition, the Decree also clearly states that in case the owner of an apartment on the first floor has a part of the apartment area for business, when resettling, the owner will be able to buy or rent the corresponding part of the floor area for business services and commerce in the new project.
For apartments from the 2nd floor and above, owners are compensated from 1 to 1.5 times the usable area of the demolished apartment.
In case the area of the resettlement apartment is larger than the compensated area, the apartment owner must pay the difference. Conversely, if the resettlement apartment is designed to be smaller than the compensated area, the investor must pay the owner the difference in area value.
Accordingly, the difference in value will be equal to the difference in area multiplied by the price of newly built housing issued by the Provincial People's Committee.
In addition, in case the homeowner does not have a need for resettlement, the compensation will be converted into cash based on the selling price of the resettlement apartment proposed by the investor.
For individuals who have a need to buy or rent-purchase social housing and meet the conditions to enjoy the policies of this segment, they will be arranged to buy or rent-purchase according to the provisions of law.
In case the apartment is the collateral of a credit institution, the handling of the resettlement apartment after reconstruction or the handling of the compensation amount shall be carried out in accordance with the provisions of civil law.
Landlords in Ho Chi Minh City are not required to set up businesses.
At the Ho Chi Minh City socio-economic press conference on August 8, Mr. Ly Thanh Long, Chief of Office of the Department of Construction, responded to the impact of the 2023 Real Estate Business Law on rental activities.
Accordingly, Mr. Long said, based on Clauses 3 and 4 of Article 9 of the 2023 Law on Real Estate Business, individuals doing small-scale real estate business do not have to establish an enterprise. Organizations and individuals renting out boarding houses on a smaller scale do not have to comply with the provisions of this law but still need to declare and pay taxes according to regulations.
Specifically, the regulations on small scale have been stated in Article 7 of Decree 96/2024/ND-CP. In which, it is required that individuals doing small-scale real estate business are not required to establish an investment project; are not required to have a value of more than 300 billion VND per contract and do not have more than 10 transactions per year (in case of one transaction per year, the value is not counted).
Explanation of the proposal to reduce residential land quota in Ho Chi Minh City
Also at the press conference on the socio-economic situation in Ho Chi Minh City, the Department of Natural Resources and Environment (DONRE) issued a document explaining the proposal to reduce the land allocation limit in Thu Duc City, along with districts 7, 12 and Binh Tan.
According to the representative of the Department of Natural Resources and Environment, Districts 2, 9 and Thu Duc have merged to form Thu Duc City. At the same time, the land fund used to implement land allocation to individuals is currently not much left.
Along with that, the urbanization speed in districts 7, 12, Binh Tan and Thu Duc City is relatively strong, with housing development status similar to districts 6, 8, Go Vap and Binh Thanh district.
Besides, the current density and land fund for housing construction in urban development planning areas in Binh Chanh, Hoc Mon, Cu Chi, Nha Be, and Can Gio districts are not inferior to other districts.
In addition, the demand for land for housing construction throughout Ho Chi Minh City is very high, but the unallocated land fund is still low.
From the above reasons, the Department of Natural Resources and Environment drafted a decision in the direction of regulating the reduction of the land allocation area limit and narrowing the scope of administrative units applicable to each land allocation area according to the limit.
Specifically, districts 1, 3, 4, 5, 6, 7, 8, 10, 11, 12, Go Vap, Binh Thanh, Phu Nhuan, Tan Binh, Tan Phu, Binh Tan and Thu Duc City are no more than 160 m2/individual.
Towns of districts and urban development planning areas in Binh Chanh, Hoc Mon, Cu Chi, Nha Be, Can Gio districts are not more than 200 m2 per individual.
Meanwhile, in rural residential areas in communes of Binh Chanh, Hoc Mon, Cu Chi, Nha Be, and Can Gio districts, it will not exceed 250 square meters per person.
Hanoi suburbs bustling with land auctions, starting price only 7.3 million VND/m2
On August 19, Hoai Duc district will auction 19 plots of land in Long Khuc area, Tien Yen commune. The area of each plot of land ranges from 74 - 118 m2, the starting price is 7.3 million VND/m2. The auction venue is the hall of the Hoai Duc district cultural, information and sports center.
The above land is bordered to the Northeast by the main traffic route of Tien Le village, Tien Yen commune and Tien Yen Kindergarten. In addition, the land is also very close to the commune's primary and secondary schools.
More than a week later, on August 29, Phuc Tho district will hold an auction of 30 plots of land in Doc Tranh area, Trach My Loc commune; and 9 plots in Dong Phuong area, Tho Loc commune. The auction is scheduled to be held at the hall of the Phuc Tho district cultural, information and sports center.
In Doc Tranh area, the land areas range from 96 - 148 m2, starting price from 23.4 million VND/m2. In Dong Phuong area, the land areas range from 134 m2, starting price is 19.8 million VND/m2.
The auctioned plots of land are located next to residential areas and only about 500 meters from the secondary school and the commune People's Committee. The technical infrastructure of the two areas has been basically completed, including electricity, water supply and drainage, telecommunications networks, etc.
In Soc Son, the district People's Committee also issued a decision on auctioning the right to use 16 plots of land in Dam Ngai area, Xuan Lai village, Xuan Thu commune. The plots of land have an area of 110 - 220m2.
Currently, the district's land fund development center is still in the process of determining the starting price and price steps. The auction is expected to take place in August 2024.
Hai Phong announces social housing prices, lowest around 14 million VND/m2
Recently, the Department of Construction of Hai Phong City announced the selling prices of 3 social housing projects eligible for sale.
Accordingly, the lowest price recorded is 14.125 million VND/m2 for the Hoang Huy New City project. This social housing area is located in Thuy Nguyen district and has a scale of 149 apartments. Currently, the project has been topped out and is in the process of completion.
The next social housing project is in Trang Due urban area, commercial services and workers' housing, An Duong district. Regarding progress, the project has topped out the CT1 building (296 units) and is under construction to the 9th floor of CT5 building (236 units); and is under construction to the 7th floor of CT6 building (236 units).
The project has a total scale of 2,538 units and is currently selling 768 units. The current price is around 16 million VND/m2.
The third eligible project for sale is the social housing area at 384 Le Thanh Tong, Ngo Quyen District. The project has topped out the CT1 building, expected to be completed by the end of 2024 and is under construction up to the 23rd floor of the CT3 building (457 units). Currently, the project is open for sale with 837 units.
Regarding price, the project has a selling price of about 18.8 million VND/m2. The highest number among projects eligible for sale this time.
The unit behind the golden glass building in Nam Tu Liem, Hanoi
QMS Top Tower project is a commercial and residential service building located on To Huu Street, Dai Mo Ward, Nam Tu Liem District, Hanoi. In recent times, this project has received much attention for its gold-plated glass design. Currently, the online community is sharing photos of the building reflecting "dazzling" under the sunlight.
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| The "dazzling" photo of the QMS Top Tower building has been circulating online recently. |
The investor of the above project is Quang Minh School Services Joint Stock Company (Quang Minh QMS). This enterprise was established in 2007 and is owned by businesswoman Nguyen Thi Thuy Huong, born in 1970. Besides Quang Minh QMS, she is also the representative of Tri Nguyen Sea and Island Tourism Investment and Development Company Limited.
Quang Minh QMS is a company operating in the field of education, providing human resources for the domestic and international labor market. In 2013, this company entered the real estate sector with the QMS Tower 1 mixed-use building project in Nam Tu Liem district with a total investment of about 150 billion VND.
In addition, the company also has another real estate project, the QMS knowledge park. The project is located in Phuong Canh ward, Nam Tu Liem district.
The current gold-plated glass project on To Huu Street has been under construction since 2018 and is expected to be completed in 2020. However, after the topping out in April 2020, the project suddenly stopped construction for unknown reasons and was "shelved" for a long time.
In early August 2024, the investor suddenly announced the first sale and promised to hand over the houses to customers in the first quarter of 2025. The starting price for apartments here is about 68 million VND/m2.
When looking up the product section on the company’s website, viewers can only find information about the QMS Top Tower real estate project. Although the website has a separate section for educational products, this content section is currently completely empty.
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