Opportunities in urban housing?

Urban areas will primarily develop commercial housing and rental housing.

Could this be an opportunity to rectify the long-standing situation of home and land ownership in urban areas, which has led to inflated prices and difficulties for those in need?

With just one reform, requiring people wanting to transfer urban land to build legally on it and complete all necessary procedures, would speculation in vacant land have to end? If this is achieved, it would bring about a massive transformation in the real estate market.

Is the "buy land and wait for the right time" strategy over?

The recent real estate bubble in some major cities is seen as being caused by speculation from various financial resources, who registered to use numerous prime land plots, including those in the inner city, waiting for the market to heat up before selling them.

This situation has been going on for quite some time. In areas considered "hot" for urban planning in Hanoi , Ho Chi Minh City, and Da Nang, speculators have "hoarded" hundreds of vacant plots of land like this, between planned areas, new urban development projects, and even areas undergoing urban redevelopment within residential zones. In some projects and areas, these vacant plots of land have been "waiting for the right time" for over 20 years...

The volatile market constantly pushes prices up, causing real estate prices to surge. As a result, workers in large cities have virtually no chance of owning a home. This conflict intensifies as the gap between market prices and living expenses widens, leading to increasing pessimism among urban dwellers about their future prospects and lack of opportunities.

Experts warn that negative sentiment regarding "housing opportunities," which has been prevalent in developed countries, is now appearing in Vietnamese cities.

Therefore, with the draft regulations no longer allowing the transfer of vacant land in urban areas, but requiring strict adherence to the Housing Law, people will primarily be involved in housing transactions, attracting favorable opinions.

If this is true, the speculation on vacant land, including both residential land and plots of land "awaiting residential status" as perceived by many in society, will have to end.

City dwellers will have a clearer opportunity to choose to own well-planned and developed housing. According to information, the transfer of vacant urban land will only be carried out in new urban housing and land development projects; and people who already own vacant land must obtain a land use certificate, certifying their rights to the land and assets attached to it. The story of vacant land plots increasing in value tenfold overnight will no longer exist!

A transparent housing market

Consultants have pointed out two key directions for the real estate market in the coming period, both related to the new Housing Law and the new Land Law.

People will only transfer ownership of residential land with existing structures built on it to prevent speculation.

This prioritizes the application of the Housing Law in urban areas and the Land Law in rural areas. The tightening of regulations by state management agencies will quickly put an end to the illusion of opportunities for speculation on agricultural land being transformed into residential and commercial areas, yielding profits dozens of times greater…

Instead, the urban housing market will see more positive changes. A leader of the Vietnam Urban Planning Association shared that the upcoming changes in administrative management mergers will move towards greater transparency in urban housing area.

This is part of the planning of provinces and cities - how to better control and limit the situation where real estate prices far exceed the savings opportunities of residents in large cities.

The overall housing development policy aims to balance the supply of rental housing with housing for workers, and social housing for those who truly need it. Real estate speculation and manipulation of urban infrastructure and public service investment projects will gradually come to an end.

For urban residents who own vacant land, investment in urban infrastructure and the development of residential housing will clearly define their investment responsibilities on the land. Accordingly, residents must complete the construction of their houses and land, register their related land use and ownership rights, before they can conduct transactions or transfers.

Real estate prices will therefore be automatically adjusted according to market demand. "Prime" land plots will be re-evaluated by the market itself, no longer representing "illusory" growth opportunities, because constructing additional buildings on the land will entail actual, daily costs for infrastructure (electricity, water, environmental treatment), transportation, living expenses, etc.

New urban investment projects will include residential and commercial areas, inevitably leading to the development of rental housing, commercial housing, and apartments with limited lease terms.

City dwellers will be encouraged to rent housing long-term at reasonable prices, so they can allocate their financial resources to other needs and interests. This will ensure that all urban residents have access to convenient housing, alleviating the pressing need to own land.

This shift in ownership concepts will bring us closer to developed countries, and gradually, the hype surrounding skyrocketing urban land prices will become a thing of the past. The urban housing market will become more transparent!

Source: https://baoquangnam.vn/co-hoi-cua-nha-o-do-thi-3146444.html