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| Latest real estate listings. (Source: Construction Newspaper) |
It is unlikely that land prices in suburban areas will experience a "heated" resurgence.
According to real estate market reports from several research firms, in the first and second quarters of this year, once-hot spots for land plots on the outskirts of Hanoi, such as Hoai Duc, Ba Vi, Thanh Tri, Soc Son, Dong Anh, and Gia Lam districts, recorded a decrease in selling prices compared to the fourth quarter of 2022.
In reality, suburban land plots remain difficult to sell despite price reductions in many areas. These properties have been artificially inflated in price over the past period. Buyers are becoming increasingly cautious about entering the market because selling prices remain high and many properties lack legal guarantees.
Regarding the future development of land plots, many experts believe that current market developments are putting significant pressure on land plot speculators using financial leverage. Even when the real estate market improves, the land plot segment will typically recover more slowly than other segments.
Mr. Nguyen The Diep, Vice Chairman of the Hanoi Real Estate Club, said that for many months now, many landowners have been advertising properties for sale, but it is very difficult to distinguish between genuine losses and profits.
Mr. Diep also stated that many people want to buy suburban land for long-term investment but are afraid that buying at a high price will reduce the return on investment. Therefore, if they cannot find a lower-priced plot of land in a suitable location, some investors have shifted to the rental property investment segment.
"Never before have investors been so indifferent to land plots as they are now, proving that the real estate market is gradually weeding out speculation and moving towards genuine investment," Mr. Diep emphasized.
According to Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, the current market is still facing difficulties, and liquidity remains weak, so a resurgence in suburban land prices is unlikely at this time.
"In the context of a stagnant real estate market, many landowners and brokers are selling at a loss, lowering prices to attract buyers… However, the selling price is only reduced compared to the peak and is still quite high compared to the actual value," Mr. Dinh said, advising buyers to carefully filter information about promotions and the land plot before deciding to "make a purchase."
Commenting on this situation, Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn - said that the current difficulties in the real estate market are due to buyers' tendency to hold onto their money, waiting for further price reductions. In addition, a significant portion of the market still has a negative outlook. Furthermore, investors are also facing pressure from increased payments and interest payments.
HoREA proposes abolishing some "inadequate" regulations of Circular 06.
Following the State Bank of Vietnam's issuance of Circular 10/2023/TT-NHNN (Circular 10), which suspended some provisions of Circular 06/2023/TT-NHNN (Circular 06) to improve access to credit for businesses, the Ho Chi Minh City Real Estate Association (HoREA) continued to submit proposals to the Prime Minister and the State Bank of Vietnam for consideration of amendments and additions to other regulations.
Accordingly, HoREA proposes amending and supplementing point d, clause 5, Article 16 of Circular 22/2019/TT-NHNN (amended and supplemented by Article 1 of Circular 08/2020/TT-NHNN) to request an extension of 12 months, as there is only a little over one month left (October 1, 2023) before credit institutions must comply with the maximum ratio of short-term capital used for medium-term and long-term lending of 30%.
Furthermore, HoREA proposed that the State Bank of Vietnam consider allowing credit institutions to purchase corporate bonds for the purpose of restructuring their own debts, to ensure consistency and uniformity with Clause 2, Article 1 of Decree No. 65/2022/ND-CP (amending Clause 2, Article 5 of Decree 153/2020/ND-CP).
In addition, HoREA also recommended that the State Bank of Vietnam continue to review and consider amending and supplementing some "inadequate" regulations in Circular No. 06 that businesses, associations, and experts have suggested. This is because Circular No. 10 of the State Bank of Vietnam only suspended the enforcement of Clauses 8, 9, and 10 of Article 8 of Circular No. 39/2016/TT-NHNN (which was supplemented by Clause 2, Article 1 of Circular No. 06/2023/TT-NHNN) from September 1, 2023, until the effective date of the new legal document regulating these issues. Currently, there is no legal document amending, supplementing, or repealing these regulations.
Therefore, although Circular 10 temporarily suspends the enforcement of some regulations prohibiting lending, the Association proposes that the State Bank of Vietnam abolish these regulations.
The Ministry of Justice 'blows the whistle' on Hanoi's regulations regarding the auction of agricultural land.
According to Vietnamnet, the Department of Legal Document Inspection (Ministry of Justice) has requested Hanoi to address illegal content related to the auction of agricultural land, and to consider and handle the responsibility of the collective and individuals who advised, drafted, and issued the illegal documents.
Ho Quang Huy, Director of the Department of Legal Document Review (hereinafter referred to as the Department of Legal Document Review), has just signed a document concluding the review of Decision No. 24/2022 of the Hanoi People's Committee regulating the auction of land use rights for land allocation or land lease in the city.
According to the Document Review Department, Decision No. 24/2022 contains provisions that are contrary to law.
Specifically, Clause 1 of Article 1 of this decision states: "Agricultural land used for public purposes as stipulated in Clause 3 of Article 132 of the Land Law: The People's Committee of the district level shall organize auctions for the use of agricultural land with a term of 5 years."
However, for agricultural land used for public purposes that is not yet in use, according to Clause 3, Article 132 of the Land Law, the People's Committee of the commune will lease it to local households and individuals for agricultural production and aquaculture through auction. The land use term for each lease shall not exceed 5 years.
Therefore, the decision of the Hanoi People's Committee to delegate authority to auction agricultural land used for public purposes is inconsistent with the provisions of the Land Law.
On the other hand, Clause 2, Article 7 of the 2013 Land Law stipulates that the Chairman of the People's Committee at the commune level is responsible to the State for the use of agricultural land for public purposes.
"Therefore, the Hanoi People's Committee's regulation on delegating the authority to auction unused agricultural land for public purposes to the district People's Committees will affect the determination of the entity responsible to the State for the use of agricultural land for public purposes," the document from the Department of Document Inspection clearly states.
According to the Department of Document Review, Clause 6, Article 1 of Decision No. 24, which stipulates that the public announcement of land use right auctions should be published in the newspapers Kinh Te Do Thi, Ha Noi Moi, and Dau Thau, is "without legal basis".
The agency cited Article 57 of the 2016 Law on Auctioning Assets, noting that this law does not specify a limit on the number of newspaper pages that can be used for public announcements.
Regarding the regulations on deposit payment, the Ministry of Justice also assessed Hanoi's decision as inconsistent with the provisions of the 2016 Law on Auctioning Assets, as it did not specify that only in cases where the deposit amount is less than 5 million VND can the bidder pay directly.
Therefore, the Document Inspection Department recommended that the Hanoi People's Committee promptly address the aforementioned illegal contents.
Simultaneously, review the implementation process of Decision No. 24/2022 to take measures to remedy any consequences caused by the implementation of illegal regulations (if any).
In addition, the Document Review Department also recommended considering and taking disciplinary action against the collectives and individuals who advised on, drafted, and issued illegal documents.
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| In 2021-2022, Bac Giang province accelerated the approval of investment policies and the selection of investors to implement the construction of social housing projects for workers. (Illustrative image - Source: VNN) |
Bac Giang expands the eligibility criteria for purchasing social housing.
Bac Giang province has just approved a decision to adjust and supplement the Project on developing housing for workers in Bac Giang province until 2025, with a vision to 2030 (the Project).
According to the plan, the number of workers in need of social housing during the 2021-2025 period is approximately 424,000. The goal is for the province to meet 80% of the social housing needs of workers by 2025, equivalent to about 339,000 people.
In 2021-2022, the province accelerated the approval of investment policies and the selection of investors to implement social housing projects for workers. The province has 15 social housing projects for workers, expected to be implemented by 2025.
By the end of 2025, if these projects are fully completed, they will provide approximately 29,762 social housing units for workers.
Specifically, social housing projects that have been and are planned to be implemented under the scheme during the 2021-2025 period will create 40,697 social housing units.
With the implementation of social housing projects for workers, it is possible to expand the scope of beneficiaries of social housing according to legal regulations, based on prioritizing workers currently employed in industrial zones and clusters.
With new projects underway and products available during the 2026-2030 period, Bac Giang province focuses on ensuring a structure that meets the demand for social housing, with a total of 46,003 houses needing to be built.
It is projected that the total number of workers in Bac Giang's industrial zones will reach approximately 262,284 by the end of 2025 and around 487,584 by 2030.
Meanwhile, the demand for social housing for low-income earners is projected to be 13,106 units during the 2021-2025 period; and approximately 31,351 units during the 2026-2030 period.
Therefore, in order to attract investment and meet the housing needs of low-income people in the province, Bac Giang has expanded the scope of beneficiaries, allowing not only workers but also low-income individuals to participate in purchasing social housing in these projects.
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