“There are many high-end houses, but there is still little low-income housing.”

At the end of 2023, the National Assembly passed two important draft laws that will have a strong impact on the real estate market, namely the Housing Law and the Real Estate Business Law. The two new laws will officially take effect from 2025.

Most recently, on the afternoon of January 18, the National Assembly continued to pass another important draft law, the Land Law. This is considered a difficult law to adjust and has had to be postponed many times.

Commenting on the new Laws passed by the National Assembly, at the Real Estate Market Forum, which took place on the afternoon of January 18, Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management, Ministry of Construction, said that these Laws will be a major step forward in policy and one of the important legal frameworks, with many regulations having a positive impact on the market, investors and customers.

There are many high-end houses and few low-income houses. Image 1 — Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management (Ministry of Construction). (Photo: XD)

Regarding the Housing Law and the Real Estate Business Law, Mr. Hai said that after 8 years, both Laws have basically completed their mission, creating a developed real estate market and creating many important achievements.

However, over time, there are still basic limitations. Regarding changes, the 2023 Housing Law has 7 new points, the 2023 Real Estate Business Law has 11 new points, which are assessed to be suitable for practice, ensuring the consistency and uniformity of legal regulations.

Specifically, regarding the Housing Law, this is considered one of the important bases for housing development strategy.

“In particular, the Law adds stricter conditions for investment in the construction of multi-storey houses and apartments for sale by individuals, to ensure the safety of people’s lives and property and avoid law evasion. This is one of the important changes, especially after recent incidents involving high-rise buildings,” said Mr. Hai.

Regarding social housing, the Director of the Department of Housing and Real Estate Market Management affirmed that the Housing Law 2023 will be a legal framework that will provide good support for the Social Housing Development Strategy in Vietnam.

Accordingly, the 2023 amended Housing Law clearly stipulates that the Provincial People's Committee must allocate sufficient land funds for social housing development according to the approved provincial housing development program and plan.

In special, type I, type II and type III urban areas, based on Government regulations, the Provincial People's Committee decides that the investor of a commercial housing construction investment project must reserve a portion of the residential land area in the project that has invested in building a technical infrastructure system to build social housing or arrange the social housing land fund that has invested in building a technical infrastructure system in a location other than the scope of the commercial housing construction investment project in that urban area.

There are also cases where investors pay money equivalent to the value of the land fund invested in building technical infrastructure systems to build social housing.

Regarding the notable new points in the 2023 Law on Real Estate Business, there are 11 points, the first is that the scope of the law is clarified.

With new points, Mr. Hoang Hai discussed in depth about new points related to publicizing a series of real estate information before putting it into business.

“For example, when information needs to be announced, what content needs to be informed, and the announcement of related documents are all included; Decision on investment policy; approval of investment policy; approval of real estate project investment; Decision on land allocation and land lease by competent state agencies…”, Mr. Hai emphasized.

Mr. Hoang Hai also revealed that recently, 70% of legal problems related to real estate have been resolved.

Regarding the Housing Law 2023 and the Real Estate Business Law 2023, they will not take effect until January 1, 2025, but basically 2024 is a suitable start.

Taking social housing as an example, Mr. Hai affirmed that issues of planning, price, subjects, incentives, land funds, capital development for society... if applied will create high supply at a time when there is a lack of supply and demand in the housing market.

“There are many high-end houses, but there are still few low-income houses. The market will likely improve if the changes to the Housing Law officially take effect. We have improved in 2023, the time when we surpass it will not be far away,” said Mr. Hai.

Source