"There are plenty of high-end housing options, but there is still a shortage of affordable housing for low-income earners."

At the end of 2023, the National Assembly passed two important draft laws that will have a strong impact on the real estate market: the Housing Law and the Real Estate Business Law. These two new laws will officially come into effect in 2025.

Most recently, on the afternoon of January 18th, the National Assembly continued to pass another important draft law, the Land Law. This is considered a difficult law to regulate and has been postponed many times.

Commenting on the new Laws passed by the National Assembly, at the Real Estate Market Forum, which took place on the afternoon of January 18, Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management, Ministry of Construction, said that these Laws will be a big step forward in policy and one of the important legal frameworks, with many regulations having a positive impact on the market, investors and customers.

There are many high-end houses, but there are still few low-income houses. (Figure 1) — Mr. Hoang Hai, Director of the Department of Housing and Real Estate Market Management (Ministry of Construction). (Photo: Construction)

Regarding the Housing Law and the Real Estate Business Law, Mr. Hai believes that after 8 years, both laws have basically fulfilled their mission, creating a driving force for the development of the real estate market and achieving many important accomplishments.

However, over time, fundamental limitations remain. Regarding changes, the 2023 Housing Law has 7 new points, and the 2023 Real Estate Business Law has 11 new points, which are considered appropriate to practical realities and ensure the consistency and uniformity of legal regulations.

Specifically, regarding the Housing Law, this is considered one of the important bases for housing development strategy.

“In particular, the Law adds stricter conditions for investing in the construction of multi-storey houses and apartments for sale by individuals, to ensure the safety of people’s lives and property, and to avoid legal loopholes. This is one of the important changes, especially after recent incidents involving high-rise buildings,” said Mr. Hai.

Regarding social housing, the Director of the Department of Housing and Real Estate Market Management affirmed that the 2023 Housing Law will be a good legal framework to support the social housing development strategy in Vietnam.

Accordingly, the amended Housing Law of 2023 clearly stipulates that provincial People's Committees must allocate sufficient land for the development of social housing according to the approved provincial housing development program and plan.

In special, type I, type II and type III urban areas, based on Government regulations, the Provincial People's Committee decides that the investor of a commercial housing construction investment project must reserve a portion of the residential land area in the project that has invested in building a technical infrastructure system to build social housing or arrange the social housing land fund that has invested in building a technical infrastructure system in a location other than the scope of the commercial housing construction investment project in that urban area.

There are also cases where the investor pays an amount equivalent to the value of the land fund already invested in building the technical infrastructure system for the construction of social housing.

Regarding the notable new points in the 2023 Law on Real Estate Business, there are 11 points, the first being that the scope of the law has been clarified.

Regarding the new points, Mr. Hoang Hai discussed in detail the new aspects related to the public disclosure of information about real estate properties before they are put on the market.

“For example, when information needs to be announced, what content needs to be informed, and the announcement of related documents are all included; Decision on investment policy; approval of investment policy; approval of real estate project investment; Decision on land allocation and land lease by competent state agencies…”, Mr. Hai emphasized.

Mr. Hoang Hai also revealed that, in the past period, 70% of legal obstacles related to real estate have been resolved.

Regarding the Housing Law 2023 and the Real Estate Business Law 2023, which will only come into effect on January 1, 2025, 2024 is essentially a suitable starting point.

Taking social housing as an example, Mr. Hai affirmed that if issues related to planning, pricing, target groups, incentives, land allocation, and the development of social capital are addressed, it will create a high supply at a time when the housing market is experiencing a supply-demand imbalance.

"There are plenty of high-end housing, but there is still a shortage of low-income housing. The market is likely to improve if the changes to the Housing Law officially come into effect. We have already seen improvements in 2023, and the time when we surpass that is not far off," Mr. Hai said.

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