Real estate prices are constantly increasing, establishing new ground, residential land in Hanoi is in high demand, the latest regulations on red book mortgages... are the latest real estate news.
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| Residential real estate is becoming another option as price increases are not as “chaotic” as apartments. (Photo: Linh An) |
Real estate prices continue to rise
Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute (Vietnam Real Estate Brokers Association) said that real estate prices are continuously setting new levels, at high levels, far exceeding the income growth rate of the majority of people.
Specifically, the real estate price index of apartments in the second quarter of 2024 in Hanoi and Ho Chi Minh City increased by 58% and 27% respectively compared to the second quarter of 2019. Affordable commercial apartment projects have completely disappeared in urban areas. Even the mid-range apartment segment is increasingly scarce, gradually being "dominated" by the high-end and luxury segments when more than 80% of the supply of apartments for sale in Hanoi and Ho Chi Minh City in 2024 is priced from 50 million VND/m2 or more. Many newly launched apartment projects have prices of tens of thousands of USD per 1m2.
The high price of primary real estate apartments has led to a "skyrocketing" price of old apartments, with many apartments that have been used for decades being traded at prices double or triple the price at the time of handover. "Following" the fever of apartment prices, the selling price of houses attached to land, including villas and townhouses, has also "gained momentum" to increase, including some projects in districts far from the center of Hanoi when the inner city supply is increasingly scarce.
If in the past, the unit price of hundreds of millions per square meter for villas was considered high, now there are villas for sale at prices up to 1 billion VND per square meter which is still considered normal. Land prices are also constantly increasing. Many provinces and cities have recorded the phenomenon of clean legal land "heating up" locally due to re-investment activities or due to some groups of investors creating fake supply and demand to push up prices. In some provinces and cities such as Hai Duong, the price has exceeded the "fever peak" in 2022.
Ms. Mien believes that in the short term, primary real estate prices will hardly decrease, especially in the apartment segment - a type that meets the main housing needs in urban areas. Because in the context of the demand for real estate, especially the investment demand, is constantly increasing, investors will prioritize the development of the high-end segment to maximize profits when land funds are increasingly scarce, construction costs are increasing along with infrastructure and utilities being invested in with increasing quality.
The new legal corridor eliminates investors with weak financial capacity, forcing the remaining investors in the "playground" to develop large urban areas with synchronous infrastructure and utilities, with great influence, which means high costs, also making it difficult for real estate prices to decrease.
At the same time, the market is left with only investors with good financial potential, strong existing capacity or advantages in creating land funds, which will continue to maintain the phenomenon of monopoly of supply, and large investors will continue to decide the market price, in a higher direction to maximize profits.
Residential land in Hanoi is in high demand.
Residential real estate is becoming another option when the price increase is not pushed as "chaotically" as apartments. A survey by Batdongsan.com.vn shows that the price of private houses in the inner city districts of Dong Da, Ba Dinh, Thanh Xuan, Cau Giay, Nam Tu Liem, Ha Dong, Hoang Mai... recorded an average price increase of 10-20% since the beginning of the year. The transaction volume at floors specializing in selling residential land in Hanoi increased by an average of 10-30% in the past 3 months, at the same time when apartment prices were constantly jumping.
Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, also said that Batdongsan.com.vn's real estate market data shows that private houses and townhouses are maintaining a stable level of interest. In the first three months of 2024, private houses and townhouses have shown an upward trend in transaction volume and interest in all price ranges. In particular, interest has increased sharply in almost all districts of Hanoi.
Specifically, compared to the beginning of 2023, the level of interest in private houses in Nam Tu Liem district increased by 43%, private houses in Hoang Mai increased by 28%, Dong Da increased by 21%, Ha Dong increased by 26%, Thanh Xuan increased by 12%. In terms of price, the price of private houses in Hanoi increased from an average of 95 million VND/m2 in the first quarter of 2021 to 164 million VND/m2 in the second quarter of 2024.
Thus, the average price increase of private houses is quite stable, reaching an average of 15-20% per year depending on the area. It is the stability, no price chaos, no increase chaos that makes the number of transactions of private houses and townhouses remain stable, regular, and attract the attention of real buyers and investors in the context of Hanoi apartment prices constantly jumping.
Real estate expert Tran Huu Xiem, Chairman of MSP Land System, said that there are many factors ensuring the growth of residential real estate in the future, causing cash flow to shift strongly to this segment.
Specifically, the legal changes of the newly passed Land Law and Real Estate Business Law are promoting the development of the real estate market in a transparent and healthy direction. In particular, future residential real estate prices are expected to increase according to changes in the frequency of price updates when the land price framework and land price list are removed and updated annually.
In addition, the price of land, townhouses, and private houses in products with clear legal status will also increase when detailed conditions for granting land use right certificates for land in use are not disputed; the accuracy of valuation is increasingly stricter, more transparent, and clearer.
In addition, the Chairman of MSP Land System believes that, in line with the thinking of "every inch of land is gold" of our ancestors, residential real estate is always attractive because the demand for owning land and houses, the need for accumulation of assets of Vietnamese people is very large. The scarcity of land in the inner city while the demand is constantly increasing will also promote the increase in selling prices and transactions. Therefore, this segment is always considered a shelter for cash flow, attracting real buyers and investors.
Bac Giang issues latest regulations on land division
The People's Committee of Bac Giang province has just issued Decision No. 24 detailing the limits of residential land allocation, limits of residential land recognition; minimum area and conditions for land plot separation and consolidation; limits of agricultural land allocation; limits of unused land allocation to individuals for use; limits of agricultural land transfer acceptance; criteria and conditions for changing the purpose of use of rice-growing land, protective forest land, special-use forest land, production forest land to other purposes; other types of documents of land users before October 15, 1993 applicable in the province.
Accordingly, the regulation clearly states that the conditions for land division, for residential land, must have a minimum residential land area of 32m2, a minimum frontage of 4m, and a depth from the construction boundary (if any) of at least 5.5m for the original land plot with an existing depth of 5.5m or more.
In case the land plot after the State recovers the land, the existing depth of the land plot is less than 5.5m, the minimum depth must be 3m.
Regarding the limit of residential land allocation to individuals, according to the new regulations, for urban residential land in wards of Bac Giang city (except for communes within the administrative boundaries of districts and towns converted into wards and towns due to newly established, split, or merged administrative boundaries), the maximum is 100 square meters.
Urban residential land in towns, residential land in towns converted into wards; residential land in wards of Viet Yen town; residential land in communes: Dinh Tri, Song Khe, Tan Tien, Dong Son, Tan My, Song Mai of Bac Giang city; residential land in communes within the boundaries of Bac Giang city converted into wards; residential land in rural areas along expressway, national highway, provincial road with a maximum area of 120m2.
Residential land in communes within the administrative boundaries of districts and towns converted into wards and towns due to newly established, divided, or merged administrative boundaries (after the Resolution of the National Assembly Standing Committee on newly established, divided, or merged administrative boundaries takes effect) is maximum 200 square meters.
Residential land in midland communes in districts, cities and towns is maximum 300m2. Residential land in mountainous communes in districts and towns is maximum 360m2.
In case the land plot was formed before December 18, 1980, the residential land area is determined by 5 times the residential land allocation limit corresponding to each prescribed region or area, but does not exceed the area of the land plot in use and is maximum 800m2.
In case the land plot was formed from December 18, 1980 to before October 15, 1993, the residential land recognition limit is determined by 3 times the residential land allocation limit corresponding to each prescribed region or area, but the total area does not exceed the area of the land plot in use and is a maximum of 600m2.
This Decision takes effect from September 21 and replaces Decision No. 40/2021 and Decision No. 44/2023 of the Provincial People's Committee.
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| The conditions for land users to mortgage land use rights are stipulated in Article 45 of the 2024 Land Law. (Photo: Ha Phong) |
Important regulations on red book mortgage
The conditions for land users to mortgage land use rights are stipulated in Article 45 of the 2024 Land Law.
Conditions for exercising the right to mortgage red book
Pursuant to Clause 1, Article 45 of the 2024 Land Law, land users are allowed to mortgage land use rights when the following conditions are met:
Have a Certificate of land use rights or a Certificate of house ownership rights and land use rights or a Certificate of land use rights, house ownership rights and other assets attached to land, except in the following cases: (1) Inheritance of land use rights; (2) Conversion of agricultural land when consolidating fields, exchanging plots, donating land use rights to the State or community; (3) Foreign-invested economic organizations receiving real estate project transfers; (4) Households and individuals using land that have not been granted a Certificate of land use rights, a Certificate of house ownership rights and land use rights, a Certificate of land use rights, house ownership rights and other assets attached to land, a Certificate of land use rights, ownership rights of assets attached to land but are eligible for a Certificate of land use rights, ownership rights of assets attached to land, are allowed to transfer land use rights, lease, sublease land use rights, and contribute capital using land use rights to implement projects.
Land has no dispute or the dispute has been resolved by a competent state agency, a court judgment or decision, an arbitration decision or award that has come into legal effect.
Land use rights are not subject to seizure or other measures to ensure enforcement of judgments in accordance with the provisions of the law on civil judgment enforcement. During the land use term. Land use rights are not subject to temporary emergency measures in accordance with the provisions of law.
Does the red book mortgage contract have to be notarized?
According to Clause 3, Article 27 of the 2024 Land Law, the notarization and authentication of contracts and documents exercising the rights of land users are carried out as follows:
Contracts for transfer, donation, mortgage, capital contribution using land use rights, land use rights and assets attached to land must be notarized or certified, except for the case specified in Point b of this Clause.
Contracts for leasing, subleasing land use rights, land use rights and assets attached to land, contracts for converting agricultural land use rights; contracts for transferring, contributing capital in the form of land use rights, land use rights and assets attached to land, assets attached to land in which one party or parties participating in the transaction is a real estate business organization must be notarized or certified at the request of the parties.
Documents on inheritance of land use rights, land use rights and assets attached to land are notarized or certified in accordance with the provisions of civil law. Notarization and certification are carried out in accordance with the provisions of the law on notarization and certification. Thus, when mortgaging a red book, the mortgage contract must be notarized and certified.
What does a red book mortgage file include?
Specifically, in Article 27 of Decree 99/2022/ND-CP, the person requesting mortgage registration submits a set of documents, including the following documents: Original request form No. 01a; Guarantee contract or notarized or certified guarantee contract (1 original or 1 certified copy);
Original certificate (red book, pink book) except in case of simultaneous submission of security measure registration dossier with: (1) Land and property attached to land change registration dossier; or; (2) Land ownership certificate dossier.
Can mortgaged land be sold?
Pursuant to Clause 8, Article 320 and Clause 5, Article 321 of the 2015 Civil Code, the mortgagor is not allowed to sell, exchange or donate the mortgaged property, unless the mortgagee agrees. Thus, the mortgagor is only allowed to sell the land if the mortgagee agrees.
Source: https://baoquocte.vn/bat-dong-san-moi-nhat-thi-truong-lien-tuc-thiet-lap-mat-bang-gia-moi-tu-duy-tac-dat-tac-vang-tho-cu-ha-noi-lot-diem-ngam-nguoi-mua-286217.html
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