Despite the government's vigorous efforts to prevent negative consequences and risks, the real estate market still faces numerous obstacles and difficulties.
A planned land plot in But Son town (Hoang Hoa district) was auctioned off a long time ago, but the construction rate remains limited.
Following the promulgation of the 2023 Housing Law, the 2023 Real Estate Business Law, and their implementing regulations, all levels of government and relevant agencies promptly carried out dissemination and awareness campaigns for investors, organizations, and individuals. Simultaneously, they urgently and decisively implemented solutions to address obstacles and difficulties, promoting the safe, healthy, and sustainable development of the real estate market.
The inspection and supervision of the implementation of housing policies and the real estate market have also been carried out seriously. In particular, the Department of Construction regularly monitors and effectively supervises the real estate market situation in the province, promptly taking appropriate measures and solutions to prevent the market from overheating or freezing, spreading rumors, speculating to inflate prices for profit, and creating imbalances in supply and demand...
Therefore, despite the challenging economic conditions, in 2024, the People's Committees of districts, towns, and cities in the province organized land use right auctions for projects according to the list approved by the Provincial People's Committee, ensuring compliance with regulations and procedures. A report from the Department of Construction shows that in 2024, localities auctioned 316 planned land plots with an area of 130.84 hectares, generating over 10.83 trillion VND (47.4% of the plan). This amount is considered 2.4 times higher than in 2023. Furthermore, according to reports from localities, there were no cases of unusually high auction results, exceeding the starting price by many times. The winning bids increased by an average of 0.2% to 3% compared to the starting price. Thanh Hoa City and the districts of Thieu Hoa and Ha Trung are considered to have the highest winning bids compared to the starting price, ranging from 28.8% to 30%.
According to the Department of Construction, the allocation and leasing of land through land use rights auctions has limited negative practices, contributed significantly to local budget revenue, and reinvested in infrastructure, serving socio-economic development goals. The auction process is also conducted publicly, objectively, honestly, and fairly, ensuring the legitimate rights and interests of all participating parties in accordance with the law.
However, among the planned land plots auctioned off in previous years, the occupancy rate (completion of housing construction and occupancy) remains modest. Mr. Nguyen Manh Tuan, Head of the Housing and Real Estate Market Management Department of the Department of Construction, stated that this rate in Thanh Hoa City is only about 20%. In districts and areas far from the urban center, this rate is only about 10%. This results in a significant waste of land resources.
The reasons for this situation are numerous, partly due to speculation by the public, and partly because land that has been auctioned has not yet been granted land use rights certificates. However, according to Nguyen Manh Tuan, Head of the Housing and Real Estate Market Management Department, the main reason is the huge demand for revenue from land use rights auctions, while the demand from people buying land as an investment for profit is very high. This is also partly why land prices keep rising, and even in the same area, the price of land auctioned later is higher than the price auctioned earlier. This situation not only makes it difficult for the poor, low-income or middle-income earners to access and buy land, but also makes it difficult for localities to attract large domestic and foreign corporations and businesses to invest in construction projects.
Although real estate is a commodity subject to market forces, the fact that land acquired through auction remains undeveloped long after the auction is a waste. To help prevent this situation, the Housing Law of 2023 and the Real Estate Business Law of 2023 (both effective from August 1, 2024) have stipulated regulations limiting the time frame for constructing housing after winning an auction, along with penalties for violations. However, to date, there are still no specific regulations to put the law into practice.
Another piece of good news for the real estate market, particularly in the land plot segment, is that the Government is conducting a broad consultation process to finalize the implementation plan for Resolution No. 161/2024/QH15 dated November 23, 2024, of the National Assembly on continuing to improve the effectiveness and efficiency of implementing policies and laws on real estate market management and social housing development. Accordingly, the Government is expected to assign the People's Committees of provinces and centrally-governed cities to preside over and coordinate with ministries and agencies to develop appropriate solutions to definitively resolve real estate projects facing difficulties, legal obstacles, and stagnation due to prolonged implementation processes and changes in laws over time; and to avoid "criminalizing" economic and civil relations. This solution is expected to "unleash" the potential for many land plot projects to be reinvested in, contributing to the healthy and sustainable development of the real estate market.
Text and photos: Dong Thanh
Source: https://baothanhhoa.vn/quan-ly-thi-truong-bat-dong-san-cho-coi-troi-de-phat-trien-lanh-manh-243696.htm
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