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Great expectations as real estate-related laws take effect from August 1, 2024

Báo Đầu tưBáo Đầu tư31/07/2024


Great expectations as real estate-related laws take effect from August 1, 2024

At the seminar "Focus on real estate investment in the new context", experts and business leaders assessed the impact of real estate-related laws that will take effect from August 1, 2024.

From August 1, 2024, the Land Law, the Real Estate Business Law and the Housing Law (amended) will officially take effect. These are particularly important laws, greatly impacting the development of the real estate market in general and the economy in particular.

At the seminar " Focus on real estate investment in the new context" organized by TheLEADER Magazine, experts and businesses all expected that the laws related to real estate taking effect from August 1, 2024 will create a new breakthrough, creating momentum for market development.

Dr. Nguyen Van Dinh, Vice President of Vietnam Real Estate Association: " Create a better, more attractive game"

In these revised laws, the lawmakers' viewpoint is to unify institutional regulations related to land use, avoid overlapping and conflicting laws, help investment activities and use of land resources to be clear and transparent, and aim at promoting practical capacity.

The recent market difficulties are also a game-changing filter. The market is left with only capable businesses. Small businesses will be forced to form joint ventures and partnerships to have enough strength to develop and survive in the market.

When the laws come into effect, businesses will not be able to "catch the thief empty-handed", developing projects will be much more difficult. Investors must be real workers, real players. Catching the wave, virtual surfing will not be possible when the new legal regulations come into effect.

Some new points of the laws related to the real estate market such as the land price list previously regulated every 5 years, decided by the central government, however, currently the land price list is updated annually, decentralized to the locality. Information on land prices is strict and clear, so that the game is more fair and equitable.

In addition, there are regulations on investment, social housing, selling houses to foreigners... these are new regulations that will create a better and more attractive game in the future.

With such new regulations in the law, the question is whether the decrees and circulars under the law will create additional bottlenecks or not?

The issue of the quality of sub-law documents is still a big concern for businesses and investors. Will these documents really help to remove difficulties for businesses?

In particular, the land price issue is also a huge bottleneck. If not resolved, it will continue to cause congestion in projects, leading to many problems for the real estate market.

Mr. Nguyen Hoang Nam, General Director of G-Home: "Investors are more confident in developing social housing"

Before the laws took effect on August 1, the decrees guiding social housing were already in place. In particular, resolving the land valuation process helps to significantly shorten the process of developing social housing.

In addition, social housing investors are no longer required to reserve 20% of the area for rent, and can only sell after 5 years. This greatly "unties" the rental price, which is currently public on information portals, but is still more expensive than the average price for people to rent themselves, not to mention the very complicated legal procedures. Buying, selling or renting should be left to the market to decide.

In addition, with the previous regulations, people who were eligible to buy social housing did not have enough money, while middle-class people who did not have enough money to buy commercial housing did not meet the conditions to buy social housing. Along with that were overlapping and complicated regulations on household and household registration issues.

Finally, the removal of the requirement that the individual (husband/wife) earn no more than 1 million VND per month, but the addition of the official calculation of the total income of the couple not exceeding 30 million VND/month, has greatly relieved the people, showing that the Ministry of Construction and the Government have listened to expert opinions.

The above four factors will help investors feel more confident in developing social housing.

Currently in developed countries, 1 in 5 people live in social housing. This shows the reasonableness and basis of the "20% figure" according to the regulations set by the management agencies.

With strong legal easing, I expect the new circular will help remove all difficulties so that investors can feel secure in building social housing.

Mr. Nguyen Dung Minh, Deputy General Director of MIKGroup: "Hopefully the market will have more large urban areas of several hundred hectares"

In the coming time, I expect the new laws will create opportunities for large investors to have new large-scale projects that bring real value to society. In the past 5 years, large-scale projects such as Vinhomes Smart City, Ocean, Ecopark… have created great added value.

For example, Smart City Tay Mo, four years ago the selling price was only around 30 million VND/m2, now it has reached 80-90 million VND/m2. This does not prove that the market is growing rapidly, but shows that the project is invested in a systematic way, has a good scale and infrastructure, and has brought real value to buyers.

I think the short-term issue of limited supply is one of the factors affecting the selling price. From now until the end of the year and early next year, the average selling price will increase even more.

In the coming time, with the new legal corridor, I hope that the market will have more large land funds and truly large urban areas of several hundred hectares or more.

Mr. Nguyen Tho Tuyen, Chairman of BHS Group: "There are opportunities for small and medium investors"

In my opinion, the impact of the three amended laws on small and medium-sized investors is not as important as whether businesses have enough resources or not. BHS's general assessment is that at least three types of laws have been passed and passed early.

Like football, I believe that no law is only beneficial or harmful to a specific group of people. New laws can be considered a boundary for real estate investors to follow and develop suitable products.

In fact, the Vietnamese real estate market spans many provinces and cities with thousands of investors. Therefore, we still expect opportunities for small and medium investors. For example, G-Home has successfully implemented social housing in mountainous provinces.

I believe that the impact on market factors is real, when there are many entities that make up the real estate sector, including supply, demand, legal issues and sales brokers. After the real estate market had more than 2 years of difficulties and low liquidity, the market has restarted but is concentrated in big cities.

Small and medium-sized investors do not have the advantage of resources, so it is difficult to compete in large markets. But opportunities still exist in peripheral markets and new markets.



Source: https://baodautu.vn/batdongsan/ky-vong-lon-khi-cac-luat-lien-quan-den-bat-dong-san-co-hieu-luc-tu-ngay-182024-d221255.html

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