In the second draft of the decree detailing and guiding the implementation of a number of articles of the Law on Real Estate Business, posted on the Ministry of Construction 's information portal on March 5, the Ministry of Construction has removed the proposal to stipulate that each individual doing real estate business is only allowed to sell, lease, or lease-purchase 3-5 houses in 1 year.
Accordingly, the conditions for individuals doing small-scale real estate business will be according to the provisions of Clause 3, Article 9 of the Law on Real Estate Business No. 29/2023/QH15, not having to establish a real estate business enterprise, conducting transactions according to civil law, notary law and having to declare and pay taxes according to the provisions of law.
In addition, organizations and individuals selling houses, construction works, and construction floor areas in construction works are not for business purposes as prescribed in Clause 4, Article 9 of the Law on Real Estate Business No. 29/2023/QH15.
Remove the regulation that individuals are allowed to sell or rent a maximum of 5 houses per year. (Illustration: Cong Hieu).
Specifically, organizations and individuals selling houses, construction works, and construction floor areas in construction works not for business purposes or selling, leasing, or leasing-purchasing houses, construction works, and construction floor areas in construction works under small scale are not required to comply with the provisions of the Law on Real Estate Business but must declare and pay taxes in accordance with the provisions of law.
Previously, in the second draft of the decree detailing and guiding the implementation of a number of articles of the Law on Real Estate Business, the Department of Housing and Real Estate Market Management - Ministry of Construction proposed 3 options to regulate conditions for individuals doing small-scale real estate business and for organizations and individuals selling houses, construction works, and floor areas in construction works not for business purposes.
In which, there is a proposed plan to regulate small-scale real estate business individuals including: individuals selling, transferring, leasing, or leasing-purchasing available houses or future houses from 3-5 houses or 3-5 apartments, within 1 year.
Individuals sell, transfer, lease, or lease-purchase existing construction works or future construction works from 5-10 construction works or 5-10 floor areas in construction works, within 1 year.
After this proposal was announced, some experts assessed that this could help limit speculation and real estate surfing to some extent. However, it could also create a situation of law evasion and it would be difficult for the management agency to monitor the number of real estate transactions that individuals make in a year.
According to Mr. Nguyen The Diep, Vice President of Hanoi Real Estate Club, the regulation limiting the number of real estate transactions is correct and necessary. This will limit speculation and push up real estate prices as has happened in many cases.
However, during this period, it is advisable to limit the introduction of new regulations that impact real estate trading. Because currently, the market is still in difficulty and needs many policies to recover.
Mr. Diep also said that currently the real estate market is "opening up" more to attract resources from overseas remittances. Therefore, the regulation "tightening" the number of real estate purchases may affect this resource.
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