One of the reasons for the continuous rise in real estate prices is the scarcity of supply. And one of the causes of this scarcity is legal obstacles – a situation that has occurred before, where limited supply led to land speculation.
However, the aforementioned obstacles are expected to be resolved soon as localities implement pilot policies according to Resolution No. 171/2024/QH15 dated November 30, 2024, of the National Assembly on piloting the implementation of commercial housing projects through agreements on land use rights or existing land use rights (Resolution 171). For example, the Hanoi City People's Council recently approved a list of 150 land plots with a total area of 690.04 hectares to pilot commercial housing projects through agreements on land use rights, in accordance with Resolution No. 171.
Meanwhile, in Ho Chi Minh City, departments are implementing procedures to review 442 land plots for housing projects under a similar mechanism. In a document sent to the Ho Chi Minh City Department of Agriculture and Environment, the Ho Chi Minh City Department of Construction clearly stated the contents to be reviewed as follows: "Conditions, criteria, scope, location, and land plots intended for pilot projects to develop commercial housing through agreements on land use rights or existing land use rights according to Resolution No. 171."
Of course, the number of land plots included in the pilot program will be carefully considered by the authorities, but real estate businesses hope the city will soon complete these procedures, thereby resolving the legal issues for hundreds of projects that have been stalled for some time. Once the legal framework is streamlined, the supply of housing will be abundant, many housing segments will be brought to the market, giving buyers more choices and contributing to cooling down real estate prices.
From another perspective, the prolonged stagnation of housing projects is a huge waste. This is because housing projects are primarily financed by loans combined with the developer's own capital. The longer a project is delayed, the more interest accumulates, pushing developers into a state of cash flow depletion. If these projects were resolved promptly, and housing supply were released at the right time, it would effectively meet market demand, alleviate financial pressure on developers, and allow for faster capital turnover.
Therefore, when the National Assembly passed the Resolution on piloting the implementation of commercial housing projects through agreements on land use rights or existing land use rights, it was highly welcomed and anticipated by the business community.
In addition, social housing is also an extremely important supply source that needs to be implemented quickly. Resolution 171 is expected to promote the emergence of numerous social housing projects, meeting the housing needs of the people, especially in large cities like Ho Chi Minh City and Hanoi - where real estate prices are constantly fluctuating, far exceeding the income of the majority of the population.
Many policy mechanisms stemming from this Resolution will create breakthroughs, such as: the formation of a National Housing Fund from the state budget, from funds equivalent to the value of land already invested in the construction of technical infrastructure to build social housing as stipulated by housing laws, from the sale of public properties, and from the auction of land use rights. However, it must also be frankly acknowledged that the complexity of many legal procedures is the reason why the supply of social housing has become scarce in recent times.
Thus, with two important breakthroughs – pilot programs for commercial housing and social housing – the legal framework has been gradually dismantled. The remaining issue is that the government needs to quickly translate policies into concrete, decisive, and coordinated actions. When cranes begin to appear on vacant land and construction sites become bustling again, it will signal that the policy is being implemented and will serve as a basis for reinforcing the belief that housing prices will gradually return to normal, instead of continuing to soar beyond the reach of the people.
Source: https://www.sggp.org.vn/bung-nguon-cung-de-ha-nhiet-gia-nha-dat-post804977.html
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