National Economics University makes 7 recommendations for real estate market development

Seven recommendations, nearly 2,600 words long, were sent by the National Economics University to Prime Minister Pham Minh Chinh. These proposals relate to new points in three real estate laws and the operation of real estate trading floors.

National Economics University makes 7 recommendations for real estate market development

Seven recommendations, nearly 2,600 words long, were sent by the National Economics University to Prime Minister Pham Minh Chinh. These proposals relate to new points in three real estate laws and the operation of real estate trading floors.

Recently, the National Economics University (NEU) sent to Prime Minister Pham Minh Chinh 7 recommendations to help develop the real estate market in a stable and healthy direction.

With the first recommendation , NEU believes that authorities need to focus on removing difficulties for businesses when accessing land to carry out real estate investment projects.

“Currently, there are still many difficulties in accessing land to implement investment projects. Many projects are stuck in land acquisition, compensation, site clearance, and difficulties in converting land use purposes…”, NEU raised the issue.

The real estate market has undergone many changes following the introduction of three new real estate laws. Photo: Le Toan

Accordingly, to resolve the above problems, NEU has proposed a number of solutions such as completing the auction, bidding, and land allocation processes according to new regulations; developing and adjusting land price lists according to the spirit of the new law but needing to ensure the interests between the State and investors; speeding up the completion of procedures, removing legal obstacles, to facilitate the transfer of projects that do not have sufficient financial capacity.

In addition, there are some other solutions such as allowing adjustment and guiding the implementation process of converting commercial housing projects to social housing; researching and considering piloting the implementation of decentralization and authority to decide on adjusting commercial housing construction projects to social housing for the People's Committees of provinces and cities.

In the second recommendation , NEU said that authorities need to remove difficulties in capital sources for the market, aiming to mobilize long-term and sustainable capital sources.

To do this, capital from bank credit needs to be unblocked. Commercial banks need to issue appropriate lending criteria for different types of real estate, limit the concentration of credit on high-end projects; focus credit capital on investment in social housing projects, commercial housing projects with high efficiency, good consumption, meeting the real needs of the people.

"At the same time, credit expansion needs to go hand in hand with credit quality control, strengthening appraisal and supervision of loan use, ensuring proper purposes, and limiting new bad debts arising in the real estate sector," NEU noted.

Next, capital flows from real estate bonds need to be promoted. The Ministry of Finance needs to review the financial status (including assets, debts, and cash flows) of bond issuers that are currently facing difficulties. With newly registered bonds, supervisory management agencies need to strengthen monitoring and supervision of cases where enterprises and groups of enterprises issue large volumes of bonds.

“It is necessary to attract foreign investment capital and create a long-term capital mobilization channel. In addition, it is necessary to encourage the development of institutional investors by promoting the development of real estate investment funds,” NEU suggested.

With the third recommendation , NEU believes that it is necessary to make information and databases on land and real estate transparent. This proposal can be realized by completing and regularly maintaining the information system and database on housing and the market; improving the quality of operations of support service business organizations (brokerage enterprises, trading floors); promoting the implementation of non-cash payments, etc.

In the fourth recommendation , the school proposed to perfect the organizational model of the real estate trading floor system provided by the private sector. To help the trading floor system effectively promote the transparency of market information, the standards for establishing trading floors and the standards for managers and operators of the floors need to be clearly defined.

Not only that, the professional level of brokers also needs to be improved; the operation of the trading floor needs to be strictly managed; there needs to be regulations on issuing operating regulations at the floor and publicizing the regulations for the participating parties to monitor and implement...

Regarding the 5th recommendation , NEU proposed to supplement the conditions and standards of real estate trading floors. Specifically, it includes adding conditions on financial capacity for businesses to establish trading floors; conditions on capacity and professional qualifications of employees.

“For real estate types to be traded on the floor, it is necessary to stipulate specific conditions. For this requirement, first of all, the competent authorities need to be responsible for publicly announcing information on planning, land use plans, housing development plans; information on infrastructure development investment…”, the school said.

In the 6th recommendation , NEU said that it is necessary to improve the mechanism for monitoring and managing the activities of real estate trading floors and the reporting regime for management agencies.

“It is necessary to add more regulations on publicizing real estate prices, procedures and processes for carrying out transactions, related service fees, etc. This can increase the publicity and transparency of project information put into transactions, especially real estate formed in the future,” the school said.

In addition, the level of administrative penalties related to violations of entities in the real estate transaction model also needs to be raised. In reality, the current penalty level is not worth much compared to the benefits that business entities gain from real estate projects, thereby giving rise to the mentality of "accepting to pay fines to be able to violate".

Finally, with the 7th recommendation , NEU believes that there should be regulations on online real estate trading floors (electronic transactions at trading floors). Currently, there are no legal regulations directly regulating the operation and exploitation of online business of a real estate trading floor.

“Real estate transactions involve valuable assets with complex characteristics, in a context where information lacks transparency and legality needs to be carefully verified. Therefore, it is necessary to have more detailed and specific instructions for electronic transactions with real estate trading floors. This is also an essential requirement to adapt to the trend of the current technological era,” the school commented.

Source: https://baodautu.vn/batdongsan/truong-dai-hoc-kinh-te-quoc-dan-neu-7-kien-nghi-phat-trien-thi-truong-bat-dong-san-d228912.html