One of the reasons why real estate prices are constantly climbing is the scarcity of supply. And one of the reasons for this scarcity is legal entanglement - a situation that has happened before, when limited supply leads to land fever.
However, the above-mentioned difficulties are expected to be resolved soon when 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 receiving land use rights or having land use rights (Resolution 171). For example, the Hanoi People's Council has just approved a list of 150 land plots with a total area of 690.04 hectares to pilot commercial housing projects through agreements on receiving land use rights, according to Resolution No. 171.
Meanwhile, in Ho Chi Minh City, departments and branches are implementing procedures to review 442 land plots for housing projects with similar mechanisms. In a document sent to the Department of Agriculture and Environment of Ho Chi Minh City, the Department of Construction of Ho Chi Minh City clearly stated the contents of review as: "Conditions, criteria for location scope, land plots expected to implement the pilot project for commercial housing development through agreements on receiving land use rights or having land use rights according to Resolution No. 171".
Of course, the number of land plots included in the pilot list will be carefully considered by the authorities, but real estate businesses hope that the city will soon complete these procedures, thereby removing legal obstacles for hundreds of projects that have been stuck in the past. When the legal process is cleared, the housing supply will be abundant, many housing segments will be introduced to the market, giving buyers more options and contributing to cooling down real estate prices.
From another perspective, the prolonged stagnation of housing projects is a huge waste. Because housing projects are mainly formed from borrowed capital, combined with the investor's own capital. The slower the project is implemented, the more interest on loans increases, causing investors to be exhausted of cash flow. If those projects are soon resolved, the housing supply is launched at the right time, it will meet market demand well, at the same time helping investors relieve financial pressure, and capital flows will be rotated faster.
Therefore, when the National Assembly passed the Resolution on piloting the implementation of commercial housing projects through agreements on receiving land use rights or having land use rights, it was highly welcomed and expected by the business community.
In addition, social housing is also an extremely important source of supply that needs to be implemented quickly. Resolution 171 is expected to promote the emergence of a series of social housing projects, meeting the housing needs of people, especially in large cities such as Ho Chi Minh City and Hanoi - where real estate prices are constantly "dancing", far exceeding the income of the majority of people.
Many policy mechanisms from this Resolution will create breakthroughs, such as: forming a National Housing Fund from the state budget, from money deducted equivalent to the value of land funds invested in building technical infrastructure systems to build social housing according to the provisions of the law on housing, from money from selling houses belonging to public assets, from money from auctioning land use rights. However, it is also necessary to frankly acknowledge 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, the pilot for commercial housing and social housing, the legal corridor has been gradually removed. The remaining problem is that the government needs to quickly transform policies into specific, drastic and synchronous actions. When cranes begin to appear on vacant land, when construction sites become bustling again, it will be a signal that the policy is coming to life and a basis for strengthening the belief that housing prices will gradually return to the ground, instead of continuing to "fly away" beyond the reach of the people.
Source: https://www.sggp.org.vn/bung-nguon-cung-de-ha-nhiet-gia-nha-dat-post804977.html
Comment (0)