Land auction in Soc Son receives bids of 30 billion VND/m2; Ministry of Finance proposes taxing the buying and selling of houses and land based on the length of ownership.

Decision to pilot expanding land for commercial housing nationwide; Expectations of recovery in real estate developers' ability to pay; Hanoi to have a state-of-the-art opera house, spanning over 25,000 square meters.

Land auction in Soc Son receives bids of 30 billion VND/m2; Ministry of Finance proposes taxing the buying and selling of houses and land based on the length of ownership.

Decision to pilot expanding land for commercial housing nationwide; Expectations of recovery in real estate developers' ability to pay; Hanoi to have a state-of-the-art opera house, spanning over 25,000 square meters.

Here are the highlights of the real estate news this week.

Decision to pilot the expansion of land for commercial housing nationwide.

On the afternoon of November 30th, the National Assembly passed a Resolution on piloting the implementation of commercial housing projects through agreements on land use rights or existing land use rights, with 415 out of 460 attending delegates voting in favor, 19 voting against, and 26 abstaining.

The National Assembly pressed the button to pass the resolution.

The resolution stipulates a pilot program for implementing commercial housing projects through agreements on land use rights acquisition or existing land use rights (pilot projects) nationwide for the following cases: projects by real estate businesses acquiring land use rights; projects by real estate businesses currently holding land use rights; and projects by real estate businesses currently holding land use rights and acquiring land use rights.

Another case involves real estate development projects established by organizations currently using the land to implement commercial housing projects on the land occupied by production or business facilities that must be relocated due to environmental pollution, or facilities that must be relocated according to construction or urban planning.

According to the resolution, pilot projects must meet the following conditions: the scope of the land area and plots for the project must conform to the district-level land use plan or construction plan, or urban plan.

The scope of the land plot for the project must conform to the approved local housing development program and plan.
The land area and plots for the project are included in the list of land areas designated for pilot projects approved by the Provincial People's Council in accordance with the provisions of this Resolution.

A written approval from the provincial People's Committee regarding the agreement on land use rights for the implementation of the pilot project is required in the cases stipulated in this Resolution, and is also a condition stated in the Resolution.

Real estate businesses must meet the conditions stipulated by laws on land, housing, real estate business, investment, and other relevant laws.

The selection of pilot projects must meet the following criteria: they must be implemented in urban areas or areas planned for urban development; the total residential land area in the pilot projects (including existing residential land and land intended for conversion to residential land) must not exceed 30% of the additional residential land area during the planning period (compared to the current residential land use status) according to the land allocation and zoning plan in the approved provincial planning for the period 2021-2030; and they must not be projects specified in Clause 4, Article 67 of the Land Law.

For the case stipulated in point a, clause 1, Article 1 of the Resolution, the land area for the pilot project must not be included in the list of works and projects requiring land acquisition approved by the Provincial People's Council in accordance with clause 5, Article 72 of the Land Law.

For areas of national defense and security land that have been planned to be removed from national defense and security land and meet the conditions stipulated in Clause 2, Article 3 of this Resolution, but have not yet been handed over to local authorities for management, priority shall be given to the Ministry of National Defense and the Ministry of Public Security to organize pilot projects to prioritize the sale, lease, or lease-purchase of these lands to officers and soldiers of the armed forces in accordance with the law.

The resolution takes effect on April 1, 2025, and will be implemented for five years.

The Ministry of Finance proposes taxing the buying and selling of houses and land based on the period of ownership.

Recently, the Ministry of Finance submitted a proposal to the Government requesting the development of a draft Law on Personal Income Tax (replacement). In this proposal, the Ministry suggested amending and supplementing regulations regarding taxable income of individuals from real estate transfers to ensure consistency with the 2024 Land Law.

The Ministry of Finance's proposed tax directly targets real estate speculators. Photo: Thanh Vu

Specifically, in the submission, the Ministry of Finance stated that the current personal income tax policy does not differentiate based on the length of time the transferor has held the real estate.

Meanwhile, some countries around the world have used tax tools to increase the cost of speculation and reduce the attractiveness of real estate speculation in the economy, including personal income tax.

Notably, some countries also apply taxes on profits earned from real estate transactions based on the frequency of transactions and the time it takes to buy and sell the property. The faster this process occurs, the higher the tax rate; the slower it occurs, the lower the tax rate.

The Ministry of Finance cited Singapore as an example, where land bought and sold is taxed at 100% of the difference in value in the first year. After two years, the tax rate is 50%. By the third year, the figure will be 25%.

In Taiwan, real estate transactions are subject to a 45% tax rate within the first two years of purchase. For transactions between 2 and 5 years, the tax rate drops to 35%. For transactions between 5 and 10 years, it's 20%, and after 10 years, it's 15%.

According to the Ministry of Finance, in order to achieve a reasonable level of regulation and avoid speculation and real estate bubbles, the State could consider implementing a tax on personal income from real estate transfers based on the holding period, as is the practice in some countries.

Regarding specific tax rates, the Ministry of Finance believes that they need to be studied and determined appropriately, reflecting the actual state of the real estate market. Furthermore, the application of personal income tax policies on real estate transfers based on the holding period needs to be synchronized with the process of improving related land and housing policies.

In addition, the synchronization and readiness of the information technology infrastructure for land and real estate registration is also a crucial factor determining the success of the policy.

Expectations are rising for real estate developers' ability to repay loans.

A report on the residential real estate sector, based on data from the top 30 residential real estate companies by revenue, published by VIS Rating on the afternoon of November 28th, noted that real estate sales in Hanoi and Ho Chi Minh City in the third quarter of 2024 increased by 48% compared to the previous quarter, the highest level in the past four quarters. Housing demand remains strong, evidenced by a high absorption rate and robust growth in home loan lending at 7%, compared to only 1% in the same period last year.

Expectations of rising home prices, combined with lower down payments, will continue to fuel strong demand from homebuyers. Many developers such as Vinhomes, Nam Long, Nha Khang Dien, An Gia, and Nha Ba Ria - Vung Tau have recorded increased sales, primarily in the high-end segment.

However, the revenue and profits of the developers on the report's watchlist for the first nine months of 2024 decreased by 20% and 43% respectively compared to the same period last year, due to reduced handover volumes stemming from weak sales in 2023. Therefore, it is projected that over 60% of developers will not meet their full-year 2024 profit targets.

In 2025, VIS Rating expects developers to significantly increase the number of new projects, helping to improve their sales and cash flow. The industry's debt repayment capacity remained weak in Q3 2024, but leverage levels are expected to be controlled thanks to new regulations, and developers' cash flow will improve due to increased sales.

Expectations are that the debt repayment capacity of real estate developers will begin to improve from the weak levels of 2023-2024. Photo: VIS Rating

As of Q3 2024, more than half of the developers tracked by VIS Rating have weak leverage and debt repayment capabilities. This is primarily due to excessive leverage used to develop projects during the 2021-2023 period and inventory of unfinished projects as well as unsold inventory as market sentiment deteriorated since 2023.

However, as sales progress improves, VIS Rating expects the debt repayment capacity of real estate developers to begin improving from the weak levels of 2023-2024.

With positive prospects for new project sales and cash flow, developers' debt coverage ratios will gradually improve. New regulations issued in July 2024 will limit the use of debt for new projects. Therefore, VIS Rating expects debt growth to continue to slow from its high of 15% per year in the 2022-2023 period.

Hanoi will have a state-of-the-art opera house, spanning over 25,000 square meters.

Recently, the Vice Chairman of the Hanoi People's Committee, Duong Duc Tuan, signed Decision No. 6132/QD-UBND approving the detailed planning project for the central spatial axis area of ​​the Quang An peninsula, at a scale of 1/500.

Accordingly, the total area of ​​the planned land is approximately 44.1 hectares. The project will include a themed cultural and artistic park, religious and spiritual buildings, an entertainment area, and hotel and commercial services.

Rendering of the new Opera House.

Notably, the Quang An peninsula has also been designated as the site for the city's new opera house. This will be a large-scale, modern artistic structure, a quintessential representation of the capital's image. The opera house will be built on an area of ​​over 25,000 m2 with a total floor area of ​​42,000 m2.

Previously, at a public consultation meeting in July 2022, the then Vice Chairman of Tay Ho District, Mr. Nguyen Le Hoang, affirmed that the theater would not significantly affect the water surface area and would not be located within the water surface area of ​​West Lake.

Furthermore, another piece of information that has attracted public attention is the identity of the designer of this momentous project. The person chosen for this important task is Renzo Piano, a renowned Italian architect. He is the "creator" of Kansai International Airport (Japan) – the first airport built on the sea; and the Parco della Musica concert hall complex (Italy) – one of the largest performing arts venues in Europe…

In the design of the Opera House on the Quang An Peninsula, Renzo Piano conceived the idea of ​​a roof structure with a thickness of only about 200-600mm. This ultra-thin structure had been conceived by the architect 40 years ago – a time when construction techniques could not yet meet this particular requirement.

Not only does the capital's new opera house boast one of the world's most unique roof designs, but it also incorporates many advanced technologies and design techniques. The entire wall of the main auditorium is equipped with a system of mechanically operated acoustic panels.

For each different type of performance, the acoustic panels will be controlled to open, close, and move up and down in corresponding directions and positions. This ensures that the sound reflection, sound absorption, and reverberation time are appropriate for the requirements of each artistic program.

Soc Son land auction: Bidding up to 30 billion VND/m2, then "too scared, withdrew"?

According to sources from Baodautu.vn , during the auction of 58 land plots in Quang Tien commune, Soc Son district (Hanoi), many bidders, realizing they no longer had a chance of winning the bids for the desirable plots, offered unreasonably high prices.

Customer's bid form in round 6. Due to the price being pushed up too high, the participant requested to withdraw.

Specifically, by the fifth round of bidding, some bidders had submitted bids for land exceeding 30 billion VND/m2. Many other plots of land also received very high bids, ranging from 60 to 101 million VND/m2. However, by the sixth and final round, they withdrew their bids.

Ultimately, only 22 out of 58 plots of land were successfully auctioned, with prices ranging from 32 to 50 million VND/m2. All those who bid the highest prices in round 5 withdrew their bids in round 6.

The price was paid in round 5.

Speaking to reporters, a source – who also directly participated in the auction – said that the land plots here only had an average price of about 35-40 million VND/m2. The groups and associations participating in this auction lacked a thorough understanding of the market, thus squandering opportunities. Their impulsive bidding not only failed to resolve the issue but also tarnished the image of land auctions, negatively impacting the market.

"I hope the authorities will thoroughly review this auction. This is a deliberate, organized act that shows blatant disregard for the law," the person angrily stated.

58 plots of land were put up for auction with a starting price of 2.8 million VND/m2. The plots range in size from 90 to 220 m2. The deposit amount for each plot ranges from 44 to 111 million VND. The auction will be conducted through six mandatory rounds of direct voting.

Previously, in March 2024, a land auction in Hoai Duc was canceled due to suspected irregularities. Specifically, in the first round of the auction, 15 out of 33 plots of land were bid at prices ranging from 100 to 180 million VND/m2, up from a starting price of only 57 to 62 million VND/m2.

Subsequently, in the second round, the highest bidder deliberately withdrew their bid, intentionally getting disqualified and allowing the lower bidder from the first round to win the auction. Considering the bidder's alleged violation of auction regulations, the organizers sealed all registration documents and bid slips and forwarded them to the police for investigation and legal action.

Binh Dinh province is holding an auction to find an investor for a residential project worth over 1.7 trillion VND.

The Asset Auction Service Center (under the Department of Justice of Binh Dinh province) has just announced the auction of land use rights for the residential, service, and education project west of Tay Son road.

Accordingly, the land plot for auction is located within the Binh Dinh Transportation Vocational Training Center and adjacent areas in Quang Trung Ward, Quy Nhon City. The total land area is over 6.3 hectares, of which over 2.5 hectares are for terraced housing construction; and over 0.4 hectares are for commercial and service facilities…

Planning for the Residential, Service, and Education Area Project West of Tay Son Street.

The project includes 238 terraced houses (investors must build the shell and complete the exterior, with a maximum height of 4 floors); and the construction of commercial and service buildings for tourism and office business (maximum height of 5 floors).

In addition, the investor is responsible for investing in and completing the technical infrastructure of the educational land with an area of ​​0.4 hectares; and paying an amount equivalent to the value of the land fund already invested in building the technical infrastructure system for the construction of social housing (20% of the land, approximately 0.5 hectares, is reserved for social housing development).

According to the Asset Auction Service Center, the starting price of the asset is over 558 billion VND, with a bidding increment of 5% (over 27.9 billion VND). The auction will be held at 8:30 AM on December 21, 2024, at the Auditorium of the Asset Auction Service Center, 37 Phan Dinh Phung Street, Quy Nhon City, Binh Dinh Province.

The project implementation cost is VND 1.144 billion (excluding the land use fee from the winning bid). The project is scheduled to be completed within 48 months from the date of the decision recognizing the winning bid or the approval of the investor.

Thua Thien Hue province is auctioning off a prime plot of land measuring over 1,600 square meters for a commercial project.

The People's Committee of Thua Thien Hue province announced that on December 7th, the Land Development Center - Department of Natural Resources and Environment, in coordination with Quang Nam Financial and Pricing Auction Company Limited, will conduct an auction to sell assets on the land and transfer land use rights through land lease for the investment project of a commercial and service area at the property located at 47 Hai Ba Trung Street, Hue City.

Accordingly, the land plot at 47 Hai Ba Trung Street has an area of ​​1,646.6 m2; with assets attached to the auctioned land including a 3-story office building, a 2-story office building, and a guardhouse with a construction area of ​​685 m2 and a floor area of ​​1,628 m2. The land use term is 50 years, starting from the date of the Thua Thien Hue Provincial People's Committee's decision to lease the land, with payment collected in a single lump sum for the entire lease term.

The expected starting price for the auction of the land and property is 100.42 billion VND. This includes a starting price of 93.47 billion VND for the land use rights and 6.94 billion VND for the assets attached to the land. A deposit of over 20 billion VND will be required, with a bidding increment of 1.8 billion VND for the land use rights and 140 million VND for the assets attached to the land.

According to the People's Committee of Thua Thien Hue province, the land plot, after being auctioned, will be developed into a 9-story commercial and service complex. The project will offer essential commercial, service, tourism, entertainment, and recreational activities.

The project has a total investment of over 233.047 billion VND. Of this, the investor's capital contribution must ensure a minimum of 20% of the total project investment. The project implementation schedule shall not exceed 36 months from the date of land allocation or lease, with construction commencing no later than 12 months from the date of land allocation or lease.

Source: https://baodautu.vn/batdongsan/dau-gia-dat-soc-son-co-nguoi-tra-30-ty-dongm2-bo-tai-chinh-de-xuat-danh-thue-mua-ban-nha-dat-theo-thoi-gian-so-huu-d231416.html