Proposed policies for stable real estate market development

Removing difficulties to implement real estate investment projects

The petition states: it is necessary to focus on removing difficulties in accessing land to implement real estate investment projects in localities.

Currently, many projects are facing problems with land acquisition, compensation, site clearance, and difficulties in converting land use purposes... Therefore, solutions need to be aimed at resolving specific problems of enterprises such as: completing the auction, bidding, and land allocation processes according to the new provisions of the Law, to ensure that investment projects with completed infrastructure and legal conditions can be implemented in accordance with regulations; developing and adjusting land price lists according to the spirit of the new Law, but need to ensure the interests between the State and investors so that enterprises have a basis to fulfill their financial obligations to the State, and management agencies have a basis to approve projects.

In addition, speed up the completion of legal procedures, remove obstacles for projects, facilitate project transfer for projects that do not have sufficient financial capacity as required by the Law on Real Estate Business 2023; allow adjustments and guide the process of converting commercial housing projects into social housing for rent or lease-purchase for policy beneficiaries.

The Government also needs to study and consider piloting the decentralization of authority to decide on adjusting commercial housing construction projects to social housing for the People's Committees of provinces and cities to promote the process of restructuring real estate products in the market.

Mobilizing long-term and sustainable capital for the real estate market

Currently, capital flows into the Vietnamese real estate market mainly come from credit channels, corporate bonds and customer mobilization. The National Economics University recommends that a number of solutions should be implemented to unblock capital sources from bank credit. Commercial banks need to issue appropriate lending criteria for different types of real estate, limit the concentration of credit too much on real estate projects, high-end housing; focus credit capital on investment in social housing projects, commercial housing projects with high efficiency, good consumption, meeting the real needs of the people. At the same time, credit expansion needs to go hand in hand with credit quality control, limiting the emergence of new bad debts.

In order to develop capital flows from real estate bonds, consultants from the National Economics University said that, The financial It is necessary to review the financial status of companies issuing corporate bonds that are currently facing difficulties in order to support and monitor measures to fulfill debt obligations in the coming time. With newly registered real estate bonds, the management and supervision agencies need to strengthen monitoring and supervision of cases where related enterprises issue large volumes of corporate bonds.

In addition, it is necessary to promote and attract foreign investment capital into the real estate sector, restructure capital sources, encourage the development of institutional investors in the real estate market through promoting the development of investment funds to diversify capital mobilization channels, in order to gradually reduce dependence on capital mobilized from credit institutions and the corporate bond market.

Transparency of land information and database

Experts from the National Economics University recommended establishing a unified real estate market information system from the central to local levels, requiring localities and enterprises to implement a serious, focused, complete and timely reporting regime, as a basis for policy making, while contributing to the publicity and transparency of the real estate market.

At the same time, improve the quality of operations of organizations providing services to support the real estate market (brokerage enterprises, trading floors). Form a real estate goods data center established by the State to control supply and demand in the market. Promote the implementation of non-cash payments in real estate transactions with the goal of controlling and evaluating transactions, and at the same time, it is also the basis for building a land price database, serving the goal of building and promulgating real estate price indexes and market evaluation indexes.

The National Economics University recommends perfecting the organizational model of the real estate trading floor system provided by the private sector; supplementing the conditions and standards of real estate trading floors; perfecting the mechanism for monitoring and managing the activities of these trading floors.

Currently, the National Assembly has passed 3 laws related to the real estate market: the Housing Law 2023, the Real Estate Business Law 2023, and the Land Law 2024. These laws, along with their guiding documents, have officially come into effect and been implemented since August 1, 2024 (5 months earlier than previously stipulated). According to the National Economics University, in order for these 3 laws to come into effect, to truly be effective tools for the development of a stable, sustainable, and healthy real estate market, contributing to stabilizing the macro economy and implementing major economic balances, the role of State management agencies and the awareness of market participants are extremely important.

In addition, along with the development of the real estate market, the activities of real estate trading floors are gradually forming a transparent playground for business investors and bringing benefits to market participants. However, the development of the market as well as trading floors requires strict and transparent legal regulations. That is why legal regulations on real estate business and other related regulations play an important role in ensuring fairness, safety and stability, attracting much attention from market participants.