Apartments from old to new continuously increase in price, establishing new ground, Ho Chi Minh City regulates minimum area for land division

The inadequacy in the structure of real estate products is still a major limitation of the current market and is also one of the reasons for the increase in real estate prices in recent times. (Illustration – Photo: Linh An)

Apartments from old to new continue to increase in price

Reviews of apartments at Ha Noi, Ministry of Construction said that prices continued to increase in both new and old projects. Up to now, the market has established a new project price level, increasing by about 4-6% quarterly and 22-25% annually. In particular, some areas have increased locally by about 35-40% depending on the location compared to the previous quarter.

Surveys at some projects such as Lumi Prestige (Nam Tu Liem district) have prices from 69 million VND/m2, apartments in Khai Son City project (Long Bien district) have prices from 50-68 million VND/m2, projects on Nguyen Tuan street (Thanh Xuan district) have prices around 75-97,2 million VND/m2...

Not only in Hanoi, through synthesis, it shows that in the third quarter, real estate prices in some localities still tend to increase, especially in Hanoi, Ho Chi Minh City and large cities.

"The price increase phenomenon is localized, occurring in some areas, some types, some real estate segments, leading to an impact of increasing general prices," said the Ministry of Construction.

The inadequacy in the structure of real estate products is still a major limitation of the current market and is also one of the reasons for the increase in real estate prices in recent times.

The Ministry of Construction pointed out that affordable housing products are not in sufficient supply to meet market demand. In the affordable apartment segment (with a selling price of less than VND25 million/m2), there are almost no transactions and products for sale.

Mid-range apartments (VND25 million/m2 to under VND50 million/m2) still account for a high proportion of transactions and supply in the market. The rest are high-end and super high-end apartments (priced above VND50 million/m2).

Explaining the lack of housing supply to meet the needs of the majority of people, low-income and middle-income earners in urban areas, especially Hanoi and Ho Chi Minh City, the Ministry of Construction said there are many reasons.

In particular, real estate businesses face difficulties and obstacles in legal procedures, especially in determining land prices, calculating land use fees, site clearance, and land allocation.

Besides, many projects that have been and are under construction recently have had to be temporarily suspended, delayed, and have their construction progress delayed.

The management agency assessed that the Land Law 2024, Housing Law 2023, and Real Estate Business Law 2023 have been promulgated and come into effect, the difficulties in terms of institutions and legal regulations (land, housing, real estate business, credit, etc.) for enterprises have been basically resolved, and the real estate supply has shown improvement. However, there are still some limitations because it takes time for newly promulgated mechanisms, policies, and laws to be effectively implemented and "come into life".

Many real estate experts point out that the problem of increasing supply is in the affordable and reasonable price segment. In fact, in recent times, although the supply of apartments has increased, the selling price level in Hanoi has continued to record an upward trend in both the primary and secondary markets.

According to Savills Vietnam, in large cities such as Ho Chi Minh City and Hanoi, the housing market is currently lacking in affordable supply as the market share of this segment has decreased from 60% in 2016 to only 35% in 2024, with primary apartments under 2 billion VND completely disappearing.

The leader of a real estate company in Hanoi said that most of the projects being implemented in the market are mid-range and high-end. When demand is higher than supply, real estate prices increase. It is not uncommon for selling prices to be pushed higher than their real value.

According to this person, when there is no suitable and affordable housing supply, the real estate market's problems cannot be solved.

Adjusting land use plans for some projects in Quoc Oai, Hanoi

Hanoi City People's Committee has just issued Decision No. 5682/QD-UBND on adjusting and supplementing the 2024 Land Use Plan of Quoc Oai district.

Accordingly, the adjustment and supplementation of the list of Land Use Plans for 2024 of Quoc Oai district has been approved by the City People's Committee in Decision No. 418/QD-UBND dated January 22, 2024, Decision No. 2015/QD-UBND dated April 16, 2024, Decision No. 3848/QD-UBND dated July 25, 2024.

Specifically, adjusting and supplementing (location name, area) the projects identified in Decision 418/QD-UBND dated January 22, 2024, Decision No. 2015/QD-UBND dated April 19, 2024, Decision No. 3848/QD-UBND dated July 25, 2024 is 1 project.

Supplementing the 2024 Land Use Plan of Quoc Oai district with 9 projects including: Project to build traffic routes in the area approaching the Central Maternity Hospital, Facility 2; Central Children's Hospital, Facility 2; Project to build the cultural center of Ngoc Liep commune; Ngoc My A Kindergarten; building the cultural house of Phu Hang village, Tan Phu commune; building a 220kV power line to supply electricity to the 220/110kV Hoa Lac transformer station and 110kV outgoing lines; Signal transmission center; Building a general supply reserve warehouse, the Northern petroleum reserve warehouse and Convoy I under the Department of Equipment and Logistics; Expanding the 500kV Tay Ha Noi transformer station to serve the installation of 06 220kV bays, Dong Quang commune; Phuong Cach Primary School with a total area of ​​74,18 hectares.

Adjust the number of projects and area in Decision No. 3848/QD-UBND dated July 25, 2024 to 148 projects with a total area of ​​1.151,27 hectares.

Ho Chi Minh City issues new regulations on minimum area for land division

On 31/10, Ho Chi Minh City People's Committee issued Decision No. 100/2024 stipulating the conditions for land division, land consolidation and the minimum area for land division for each type of land in the area.

This Decision replaces Decision No. 60/2017 on the minimum area allowed for land division.

Regarding the minimum area for land division, according to the new regulations, residential land in the area is divided into 3 areas, with corresponding minimum areas of 36m2, 50m2 and 80m2.

Specifically, area 1 includes districts 1, 3, 4, 5, 6, 8, 10, 11, Go Vap, Binh Thanh, Phu Nhuan, Tan Binh and Tan Phu. The minimum land area for subdivision in these districts is 36 square meters, the frontage width and depth of the land plot must not be less than 2 meters.

Area 2 includes District 7, 12, Binh Tan, Thu Duc City and towns of the districts. The minimum area of ​​residential land that can be divided into plots in these areas is 50m2. In particular, the regulation on the frontage width and depth of the plot must not be less than 4m.

Area 3 includes the areas outside the towns of Binh Chanh, Cu Chi, Hoc Mon, Nha Be and Can Gio districts. The minimum area of ​​residential land that can be subdivided in these areas is 80m2. The frontage width and the depth of the land plot must not be less than 5m.

About the land AgricultureHo Chi Minh City stipulates that the minimum area allowed to be divided for land for growing annual crops and other agricultural land is 500 square meters.

Meanwhile, the minimum area for land for perennial crops, aquaculture, salt production, and concentrated livestock farming is 1.000 square meters.

Compared to the old decision, the minimum area of ​​residential land and agricultural land that can be divided into plots in Ho Chi Minh City has not changed.

The new point of the land division regulation is that there are no longer regulations on planning conditions and construction conditions as before.

Specifically, land that is divided or merged must meet the following requirements: There must be a path, connection to existing roads, ensuring water supply and drainage and other necessary needs in a reasonable manner.

If the land user reserves part of a residential land plot or a residential land plot and other land in the same plot for a walkway, when dividing or merging the plots, there is no need to change the purpose of use for the land area used for the walkway.

In case the land user reserves part of the land plot as a walkway, this walkway will be agreed upon by the parties and the local authority will base on the actual situation to give approval before separating or merging the plot.

Regarding the land area determined as a walkway, used for many plots of land, it will be converted to a common use form on the certificate.

Procedures for converting cropland to residential land

When people convert cropland to residential land, they must prepare documents to submit to the competent State agency according to the provisions of Article 227 of the 2024 Land Law.

When can crop land be converted to residential land?

Pursuant to Article 116 and Point b, Clause 1, Article 121 of the 2024 Land Law, land users are only allowed to convert cropland into residential land if approved by a competent State agency. In other words, there must be a decision allowing the change of land use purpose according to regulations.

To have a decision to allow the change of land use purpose by a competent State agency, it is necessary to base on the district-level land use planning or the general planning or the zoning planning according to the provisions of the law on urban planning approved by the competent authority.

Procedures for converting fertile land to residential land

According to Article 227 of the 2024 Land Law, the procedures for changing land use purposes are as follows:

Step 1. Submit application for change of land use purpose according to regulations.

Step 2. The competent authority shall check the conditions for changing the land use purpose. In case the dossier is not yet secured, the land user shall supplement the dossier and resubmit it to the land management agency.

Step 3. After submitting a complete application, the competent land management agency prepares a dossier and submits it to the district-level People's Committee to issue a decision allowing the change of land use purpose.

Step 4. Pay land use fees according to regulations, except in cases of exemption.

Step 5. Transfer the file to the Office/branch of the Land Registration Office to carry out the registration, issue the Book, update and correct the land database, cadastral records and return the Book to the land user.

In case of both transferring land use rights and changing land use purposes, the procedure for registering the transfer of land use rights will be carried out at the same time as the procedure for changing land use purposes according to regulations.