Land Law (amended): Igniting hopes of real estate businesses

Expectations of “revival” for the real estate market

On the morning of January 18, 432/477 delegates present voted in favor of passing the Land Law (amended). This is one of the major changes, having a strong and direct impact on the Vietnamese real estate market and the real estate business community.

Expected to be an important turning point, the Land Law (amended) will resolve legal issues, create favorable conditions for businesses and projects. At the same time, it will contribute to the development of the real estate market in a transparent and sustainable direction.

This coincided with the passing of the Housing Law (amended) and the Real Estate Business Law (amended) during the 6th session of the 15th National Assembly . This combination is expected to create a strong legal basis, encouraging the recovery of the real estate market.

From a business perspective, Mr. Nguyen Van Cuong, Head of the Executive Board of the Vietnam Association of Realtors (VARS) in Dong Nai , said: “The National Assembly’s approval of the Land Law (amended) plays an important role in promoting the rapid recovery of the real estate market after a period of stagnation. This is also an important step by the Government to perfect policies to facilitate development, open up opportunities for the real estate market to become more transparent and easier to transact, reduce legal risks and increase competitiveness.”

Mr. Nguyen Van Cuong, Head of the Executive Board of Vietnam Real Estate Brokers Association in Dong Nai

The business community has high expectations for the positive impact of the Land Law (amended) and related laws such as the Housing Law and the Real Estate Business Law on the development and recovery of the real estate market. However, projects that have started investment procedures from 2022 until these laws take effect in 2025 will face significant changes in the legal corridor.

Businesses expect the authorities to pay attention to the transition of projects between the period of law changes and provide detailed guidance for the implementation process. The timely issuance of specific guiding decrees is considered important to help resolve difficulties and promote the positive recovery of the real estate market.

Opening up opportunities for a transparent and healthy real estate market

An important point in the revised Land Law that is highly appreciated is “Removing the land price framework, determining land prices according to market principles”. This is considered to have a direct impact on property prices, increasing real value and reducing speculation and land fever. Mr. Cuong also emphasized that a more careful appraisal process will create a fierce real estate market, encouraging transparency and health.

Through the recent session, the Delegates' opinions accurately reflected the operating situation of real estate enterprises. The passing of the Land Law (amended) and the Law on Credit Institutions (amended) took place after many working sessions and thorough discussions, demonstrating the carefulness and rigor in the working process.

The National Assembly's passage of the Land Law (amended) has been well received by society with the hope that policy issues and limitations will be quickly resolved, helping to optimize the use of land resources and contribute to the comprehensive development of the economy and society.

The new Land Law (amended) is expected to be a fulcrum for the development of real estate businesses and revive the real estate market. (Illustration photo)

Commenting on the impact of the revised Land Law on the real estate market in 2024, Mr. Tran Van Binh, Vice President and General Secretary of the Vietnam Association of Realtors (VARS), said that in 2024, the market will still face many difficulties and challenges. However, there will also be many opportunities and many bottlenecks will be removed. The planning and public investment situation will have a strong impact on the real estate market when localities continuously have their plans approved and announced.

In 2024, the frequency of launching new supply sources will be more regular and denser than in 2023. In addition to major investors, there will be additional supply from new investors entering the market. At the end of the first quarter and the beginning of the second quarter of 2024, there will be a "start" of supply to the market.

In particular, Binh Duong will become a bright spot in the Southern region with about 10,000 new products launched for the first time. Ho Chi Minh City will have about 5,000 new products, not including inventory products. If legal procedures are completed on schedule, the project is not suspended due to financial difficulties of the investor, it is expected that the Hanoi market will receive about 15,000 apartments and low-rise products. Some localities and regions that promote infrastructure development, especially traffic infrastructure such as the Southwest, Southeast... will have the opportunity to achieve great expectations for real estate supply in the near future.

Mr. Tran Van Binh, Vice President and General Secretary of Vietnam Association of Realtors (VARS)

Law projects such as the revised Housing Law, the revised Real Estate Business Law and most recently the revised Land Law will have a direct impact on the development of the real estate market. The recovery process of the real estate market will have the opportunity to be shortened. The market will soon enter a new normal phase.

However, these laws will not take effect until January 2025, which means that some legal problems will still persist. And the law is the issue that has the greatest impact on the development of real estate projects, including credit policies, bank loan interest rates, bonds, etc. Thus, the real estate market will still have a chance to recover in 2024, however, signs of a full recovery will be most evident in 2025, when the draft laws officially come into effect.

NAM ANH

Source: https://www.nguoiduatin.vn/luat-dat-dai-sua-doi-thoi-bung-hy-vong-cua-doanh-nghiep-bat-dong-san-a646369.html