Business is excited

While hundreds of commercial housing projects are at a standstill due to regulations on no residential land, the Ministry of Natural Resources and Environment has completed the research and preparation of a draft Resolution of the National Assembly on piloting the implementation of commercial housing projects through agreements on receiving land use rights or having land use rights for other land, making many businesses very happy.

The draft proposes to allow real estate businesses to receive transfers of land use rights as prescribed in Article 9 of the 2024 Land Law, which are eligible to transfer land use rights to implement commercial housing projects. At the same time, it allows businesses that have land use rights to implement commercial housing projects on other types of land that are not residential land as prescribed in Article 9 of the 2024 Land Law.

As a business that had to abandon projects in both Hanoi and Ho Chi Minh City just because of residential land regulations, sharing with PV.VietNamNet, Mr. Nguyen Quoc Hiep, Chairman of the Board of Directors of Global Real Estate Investment Joint Stock Company (GP.Invest), said that if the draft resolution is piloted, it will remove difficulties for the real estate market when it is stuck in the story of supply and demand.

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Businesses hope that a series of commercial housing projects that have been stalled due to regulations on no residential land will be resolved. Photo: Hoang Ha

According to Mr. Hiep, in reality, other land accounts for a very large proportion and projects are stuck mainly because of this issue. Therefore, if the National Assembly allows the pilot, it will help many businesses whose projects have been dormant for 4-5 years, especially in Hanoi and Ho Chi Minh City.

However, the Chairman of GP.Invest hopes that other lands that are suitable for the permitted planning should be applied.

“The most important criterion is that the planning must be consistent with the Planning Law and local planning. Otherwise, there should be no restrictions on where it can be done and where it cannot be done, which will lead to a very complicated situation of asking and giving. This aspect should be taken into account so as not to make things difficult for businesses. If the problem is resolved, it should be resolved simultaneously, with all projects that are consistent with the planning. As for the prerequisite factor that is not consistent with the planning, businesses will certainly agree that it cannot be allowed to be done. Only then will the problem be resolved in the true sense,” said Mr. Hiep.

The company also has several housing projects stuck in localities. Mr. Vu Kim Giang, Chairman of the Board of Directors of SGO Group Corporation (SGO Group), is also very excited about the information in the above draft pilot resolution.

“I think businesses are looking forward to the fact that when this “bottleneck” is removed, many projects will be legally cleared; freeing up large resources for businesses. The housing supply in the market in the coming time will be improved if the pilot project to expand land types for commercial housing through agreements is soon applied,” Mr. Giang assessed.

Increasing housing supply, prices will be more suitable

Sharing with PV.VietNamNet , Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac, said that the draft resolution on piloting the acceptance of other land for commercial housing reflects the needs of businesses. The pilot implementation will help remove difficulties for many businesses, as well as the real estate market.

“If this pilot is soon applied, it will help increase the supply of housing, especially the mid-priced commercial housing segment in big cities like Hanoi and Ho Chi Minh City in the coming time. At the same time, it will also help businesses reduce costs when implementing projects. From there, the selling price of houses will also be more suitable for people,” Mr. Quyet assessed.

Meanwhile, according to Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), the development of a draft pilot project is very necessary and also inherits the legal and practical regulations of the 2013 Land Law.

The key issue, Mr. Chau said, is to prevent investors from unfairly taking advantage of land rent differences when implementing the self-negotiation mechanism between people and businesses in transferring land use rights to carry out urban and commercial housing projects.

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