Hanoi and Ho Chi Minh City propose mechanisms to remove obstacles for slow-progressing real estate projects

Hanoi will reclaim 2,600 hectares of project land

At the real estate conference on the morning of February 17 chaired by the Prime Minister, Vice Chairman of the Hanoi People's Committee Duong Duc Tuan said that from the beginning of the year to the end of the third quarter of 2022, real estate transactions in the Hanoi real estate market were quieter than at the end of 2021, the amount of products offered on the market focused mainly on investment projects in suburban districts due to the advantage of land funds.

The mid- and high-end apartment segment accounts for the majority, but prices are very high, volume and transactions are low, estimated at only about 10% of the products offered to the market, while low-income apartments and social housing are low.

Specifically, in 2022, the number of apartments put on the market will be reduced by 25% and the total floor area will be reduced by 55% compared to 2021. On this basis, in 2023, Hanoi is determined to review and evaluate 750 projects for revocation. "We expect to have to stop 4 projects and reclaim over 2,600 hectares and terminate the operation of about 60 projects with undetermined land," said Mr. Tuan.

Vice Chairman of Hanoi City Duong Duc Tuan speaks from Hanoi (Photo: VGP).

Hanoi also has the characteristic of expanding its administrative boundaries, receiving projects from provinces and cities, adding these resources to bidding and auctioning, especially developing social housing. At the same time, determining 300 hectares distributed East - West - South - North for the City and especially on this legal basis promoting bidding and auctioning.

"Determining the causes as directed by the Prime Minister , I strongly agree with the opinions of some leading experts who have analyzed. From Hanoi's perspective, we see a very difficult legal factor. Specifically, up to now, the ability to develop new projects is difficult because of the investment mechanism, especially the investment model, which is only in the form of bidding to select investors or auctioning land use rights to develop commercial housing projects in new urban areas," Mr. Tuan expressed.

Mr. Tuan said that there is a situation of bidding and auctioning on land that has an owner managing and using the land and the land tax period is still available, this is a bottleneck.

Therefore, Hanoi leaders proposed to build a Government decree to link the Land Law, Investment Law, and Housing Law "to clearly distinguish between bidding according to the mechanism, auction according to the mechanism, and appointment according to the mechanism to promote immediately, because currently there are many unfinished projects as many delegates have said".

Regarding the issue of social housing implementation, according to Mr. Tuan, although the Prime Minister has given very strong instructions, with a project of 1 million apartments, the ability to allocate social housing areas is mainly 20% in newly formed housing areas and urban areas, while new areas must be bid and auctioned, which takes time.

Currently, there is a lack of policy mechanisms for the mid-range housing segment. Hanoi plans to bid for 5 concentrated housing areas, but there is no policy mechanism for this yet. Therefore, the Vice Chairman of Hanoi hopes to have a flexible decree from the Government to handle this issue.

Ho Chi Minh City still has 116 stuck projects

Regarding the real estate market in the South, Vice Chairman of Ho Chi Minh City Bui Xuan Cuong said that the City aims to reach 50 million square meters of floor space in the 5 years of 2021-2025; through the implementation process of 2021-2022, it has reached about 28%. In the 2 years of 2021-2022, 47 projects with more than 28,000 apartments were launched on the market.

"Products and markets have not met the city's development needs. We will adjust to resolve the imbalance between supply and demand, which is currently tending towards the mid-range segment," said Mr. Cuong.

Regarding the upcoming direction, the City representative said that they will focus on removing difficulties and obstacles in investment procedures for social housing projects, worker accommodation, and renovation of old apartment buildings. In particular, the city is currently focusing on 18 priority social housing projects as well as 16 degraded apartment projects to promote in 2023.

The city also focuses on completing planning adjustments, especially in the process of implementing the general planning of Ho Chi Minh City (expected to be submitted in September this year), and the general planning of Thu Duc City will be submitted at the end of 2023.

Vice President Bui Xuan Cuong speaks from Ho Chi Minh City (Photo: VGP).

Along with that, focus on developing technical infrastructure works to connect beltway 2, beltway 3, Ho Chi Minh City - Moc Bai expressway... central beltway renovation projects, focus on promoting large projects.

During the implementation process, the group will focus on removing obstacles for real estate projects that are behind schedule in terms of legality, projects that have not paid land use fees, and projects where investors are slow in completing procedures for granting certificates of land use rights, home ownership rights, and assets associated with the interests of the people.

The city will set up a working group to resolve difficulties and obstacles of real estate projects. Currently, there are about 116 projects, of which 3 are priority projects to focus on solving and handling thoroughly.

In addition, strengthen inspection, examination and strict handling of violations in real estate investment and business regulations, real estate projects with construction violations, projects with violations in future real estate guarantees, and projects that have not yet been accepted and put into use.

At the same time, strengthen control over the activities of real estate trading floors, increase publicity and transparency, and protect the rights of people when doing business in real estate trading floors .

See also:

Novaland recommends the Prime Minister to choose Aqua City as a pilot project to remove difficulties

Ministry of Construction proposes to extend principal and interest debt for real estate businesses in difficulty

Prime Minister chairs conference on promoting real estate market

Source: https://www.nguoiduatin.vn/ha-noi-tphcm-de-xuat-co-che-go-vuong-cho-du-an-bds-cham-tien-do-a594103.html