The time of land brokers and selling "green rice" is over
About 200 meetings with citizens by provincial agencies to handle problems arising from projects invested by Bach Dat An Company are typical cases of the consequences of a period of "explosion" of so-called urban development projects.
Up to this point, although the authorities have made great efforts and responsibilities, and the highest leaders of the province have issued an "ultimatum", it will probably take some more time to completely handle the Bach Dat An case.
Not only Bach Dat An, many of the nearly 200 residential and urban area projects in the province currently invested by businesses are facing problems at different levels.
No one has yet calculated the figures (even estimates) of the damage to the State, the people and businesses, but the huge waste of resources, especially land resources and the social consequences are obvious realities. And it will take many more years for authorities at all levels to resolve the consequences of a time when projects were everywhere!
The 2024 Land Law and the laws on Real Estate Business and Housing (amended) taking effect from August 1, 2024 require an absolute ban on subdivision and sale of land in wards of all cities and towns.
At the same time, urban and residential construction projects are also tightened right from the licensing stage and the entire implementation process. Especially, the requirement for public disclosure and transparency in the public opinion is comprehensive, detailed on the legality, scale, and progress of the project implementation.
Revoking "land-hugging" projects
According to the 2024 Land Law, project investors who do not put land into use or are behind schedule in using land compared to the schedule stated in the investment project will be granted an extension of land use for no more than 24 months and must pay the State an additional amount of money corresponding to the land use fee and land rent for the extended period.
If the investor has not put the land into use after the extended period, the State will reclaim the land without compensation for the land, assets attached to the land and remaining investment costs on the land.
According to experts, with the new legal regulations, there will be a strict "screening" for real estate investors; small businesses with limited financial resources, opportunistic and unprofessional businesses will be eliminated from the game.
The situation of selling “green rice” for profit purposes will no longer exist. Because, enterprises can only open projects for sale when they have fully fulfilled their obligations to the State and met the infrastructure conditions as prescribed.
The revised Law on Real Estate Business also prohibits amateur real estate brokers and freelancers (who have long been called “land brokers” by the public). It prevents the situation of bricklayers and vegetable sellers also “trading” in land; or the widespread spread of real estate “agents” from the countryside to the city, which has been common for a long time.
Urban thinking
From August 1, 2024, the State will no longer grant licenses for land subdivision projects in wards of cities and towns. Investors in land projects are forced to concentrate on rural areas on the outskirts of towns and townships.
With significant limitations on development space, as well as tighter legal constraints on real estate projects, analysts have predicted that land prices will increase in the near future, causing disadvantages for low-income people who have a real need for residential land.
In particular, once the policy of "imposing high taxes on people who have many houses and lands but do not put them into effective use" according to Resolution 18 of the 13th Central Executive Committee has not been institutionalized by law, land speculation will probably still be attractive to many people.
Quang Nam has been suffering severe consequences from rampant urban development in the recent past, and will surely learn many valuable lessons.
The most obvious of these is the widespread and persistent desertification in many urban areas despite the completion of infrastructure; the situation where most people buy land in projects mainly for the purpose of business speculation; the loss of land for production while projects are abandoned and in disrepair for many years; the social story of many households and individuals who are very frustrated about the need to settle down and make a living but land prices are too far out of reach...
Urbanization and urban development are inevitable trends. But how, in what direction and roadmap to suit each stage of development is a problem that each locality needs to consider to most effectively exploit land resources according to the Party's orientation and harmoniously resolve social issues.
Note that in the List of investment attraction projects and investment attraction priorities of Quang Nam in the period of 2024 - 2025 (Decision No. 1221-QD/UBND, dated May 21, 2024 of the Provincial People's Committee), out of 233 projects in localities, there are up to 40 projects attracting investment in urban development, mostly in the form of market areas, urban residential areas (land business).
It is difficult to determine how many or how few projects are really necessary and urgent, what is the target (business speculators or housing needs of local residents), including the input - output problems of the project, but certainly these will be issues that cannot be ignored, when localities in the province are all too "aware" and have had to pay the price for subdivision and land sale projects.
Another noteworthy forecast from experts after the three laws related to land mentioned above come into effect is that industrial real estate will strongly attract domestic and foreign investors in the coming time.
Quang Nam province's planning has determined to develop more than 10 thousand hectares of industrial park land from now until 2030. Practice has proven that industrial land has been and is promoting the highest efficiency, generating profits and contributing the most to the local socio-economic development.
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Lesson 3: When agricultural land is "untied"
Source: https://baoquangnam.vn/thi-hanh-luat-dat-dai-2024-ky-vong-khoi-thong-nguon-luc-bai-2-dep-loan-thi-truong-bat-dong-san-3139127.html
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