The multi-million dollar "playground" is still being wasted.

Lesson 1: A Sad Reality…

The real estate market has never been as sluggish as it is now. Few new real estate projects are starting, while older projects are almost completely stalled. Many real estate agencies are operating at a minimal level or even closing down, leading to thousands of job losses. Simultaneously, corporate debt and bond obligations are increasing and pose a risk of exploding at any moment.

The "magical" allure has faded.

The real estate business in general, and the high-end real estate market in particular, is one of the key economic sectors, making a significant contribution to the country's growth and GDP. Furthermore, real estate provides employment and income for millions of workers and is closely linked to many other industries: building materials production, tourism and resorts, finance and banking, construction, etc. However, in the context of tightly controlled credit and unresolved legal issues, real estate project developers lack sufficient financial strength and complete legal documentation, making it difficult for buyers to invest as quickly and easily as before. This has led to slow sales, a near-free fall in the real estate market, and an unprecedentedly bleak outlook.

Recently, due to the impact of the Covid-19 pandemic, the global economy has faced difficulties, inflation has increased, and rising bank interest rates have profoundly affected the real estate market, especially the high-end segment. Many new real estate projects have not yet been licensed, and older projects are behind schedule, leading to an increasingly scarce supply. Meanwhile, many real estate projects have sold out but the developers have not completed them as planned, resulting in numerous abandoned villas overgrown with weeds, causing waste.

Abandoned villas, overgrown with weeds, represent a waste of resources.

Many foreign investors believe that Vietnam's real estate market is attractive due to its large population and high demand for properties. Vietnam is accelerating urbanization while the government is determined to develop the tourism industry as a key sector for growth. Furthermore, the increasing number of affluent customers sees this as a potentially high-return investment channel, despite acknowledging the inherent risks.

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According to data from the Ministry of Planning and Investment, while registered FDI capital in real estate only reached US$2.6 billion in 2021, it increased to US$4.5 billion in 2022, and the first quarter of 2023 still shows positive signs. Real estate is the second-largest sector attracting FDI capital, after the processing and manufacturing industry.

Mr. Le Minh Hiep, a specialist in high-end real estate in Nam Tu Liem district, said: "My two friends and I invested together. A few years ago, we made good profits and had quick liquidity, but from 2021 until now, we have hardly bought any more villas, while some of the ones we bought earlier remain unsold. Although there are people inquiring about buying, they are offering too low a price." Mr. Hiep added: "Luckily, we didn't borrow money from the bank when we bought them. If we had to pay interest until now, we would have had no choice but to sell them quickly."

It's clear that the real estate market is no longer at its peak like it was many years ago.

Is supply and demand a figment of imagination?

Real estate experts believe that the inventory of high-end real estate (especially villas) is quite large. However, new supply will become increasingly scarce due to the very few reputable high-end real estate projects with sufficient financial resources being implemented. Meanwhile, the supply of villas and shophouses (a model of housing combined with commercial business) in Hanoi and the northern provinces has decreased sharply. Currently, the supply mainly comes from real estate projects that were launched before 2020. From 2021 to the first quarter of 2023, only a handful of high-end real estate projects have been launched, while this segment is mainly for the upper class and not for low-income earners. Therefore, the already sluggish market is becoming even more sluggish.

Mr. Dinh Van Troi - Sales Director of Dai Phong Investment and Construction - Real Estate Joint Stock Company, commented: The supply of villas and townhouses in Hanoi has been continuously insufficient for a long time, while the new supply in 2022 and early 2023 mainly comes from projects under development and concentrated in the suburbs of Hanoi. While this will provide some additional products to the market, the amount is insignificant for selection.

The Thuy San Hill Villas project in Bai Chay ward, Ha Long city (Quang Ninh province) has many unfinished constructions.

According to a survey conducted by reporters in Quang Ninh province, the supply of villas and shophouses is still abundant, but mainly from older real estate projects such as BIM Group, Geleximco Group, Tuan Chau Group, etc., and almost no new real estate projects are being implemented; the new supply has hit rock bottom.

Meanwhile, the supply in provinces such as Ha Nam, Bac Ninh, Phu Tho, Hai Phong, and Hoa Binh is also not very promising. In these provinces and cities, there are few high-end real estate projects, transaction volumes are limited, and in recent years, very few high-end real estate projects have been implemented. While older projects are operating at a slow pace, many villas and shophouses, although owned, are not put into use, leading to abandonment, waste, and potential social problems.

That's the supply side. As for demand, experts predict that villas and shophouses with green spaces, optimal amenities, located within integrated complexes, and with convenient transportation connections will be the top choice for customers. In addition, the urbanization rate, natural population growth rate, and the rise of the middle and upper classes are also key drivers boosting demand for villas in the coming period.

In fact, once the economy recovers strongly after the Covid-19 pandemic, the government's policies to remove obstacles and difficulties for the real estate market are seriously implemented by localities, coupled with loosened credit limits and guaranteed corporate bonds, corporations, companies, and individuals will soon have access to the necessary capital. From there, real estate projects will be implemented, providing a diverse range of high-end real estate products: villas, shophouses, resorts, healthcare facilities, etc., to the market, and the buying and selling activity of the real estate market will become vibrant again.

Mergers and acquisitions are emerging.

This is a natural law: the strong overwhelm the weak, and the weak are often acquired and merged into the strong – this has been normal in the real estate industry recently. However, lately, "sharks" from both domestic and international sources have emerged, using various investment funds or cash to acquire high-end real estate projects and projects with clean legal status for development.

It can be observed that, from the beginning of 2023 to the present, Vietnamese real estate companies can be divided into four typical groups: high-risk, balanced, strong, and "new players". Among these, the "new players" group includes companies and investment funds... seeking opportunities to enter the real estate market through mergers and acquisitions.

Typical examples include FLC Group and Tan Hoang Minh Group… After their leaders were embroiled in legal troubles, a series of major corporations wanted to jump into the promising projects of these groups. Bamboo Airways officially separated from FLC Group, and as a result, many of the Group's real estate projects in Quang Ninh, Thanh Hoa, Thai Nguyen, Vinh Phuc, Phu Tho… are at risk of being halted or forced to be transferred to other partners for further research and development.

Many high-end real estate projects in the country are currently attracting interest from foreign investors.

Furthermore, many other acquisition deals are currently under negotiation. According to many economic and real estate experts, with the current sluggish real estate market and difficult financial conditions, if this situation persists, many project developers will lack working capital and may have to consider transferring or selling their real estate projects outright. This is not to mention that many foreign companies and investment funds are preparing funds, waiting for opportunities to acquire domestic real estate projects once businesses face difficulties and are forced to sell.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), proposed that the Government and the National Assembly Standing Committee consider allowing businesses to transfer real estate projects through negotiated agreements under the pilot mechanism stipulated in Resolution No. 42/2017/QH14 dated June 21, 2017, of the National Assembly. According to Mr. Chau, if implemented, this would alleviate difficulties in cash flow and liquidity for real estate businesses, including those with bonds nearing maturity. Allowing businesses to transfer projects through negotiated agreements, based on demand, would both increase tax revenue for the State and enhance the effectiveness and efficiency of state management of the real estate market. It would also increase transparency and overcome the problem of "underground" project transfers disguised as share transfers, which lead to revenue losses for the State budget.

Ms. Do Thu Hang, Senior Director, Research and Consulting Department, Savills Hanoi, stated: "The supply of properties currently being sold directly by developers in this segment is very limited, stemming from the low number of new units entering the market. However, townhouses remain the main product line, followed by villas, and then shophouses, which only account for a small percentage of the total current supply."

Lesson 2: Racing to the finish line slowly

Real estate project developers offer countless reasons for delays, but the majority are attributed to slow land clearance, changes in legal mechanisms and tax policies, and the weak financial capacity of many businesses, all of which contribute to project completion delays.

Real estate projects with delayed progress are widespread.

Most of the 63 provinces and cities have real estate projects that are behind schedule; however, the high-end real estate segment is mainly located in large provinces and cities with favorable geographical locations, potential for tourism development, and well-developed transportation and infrastructure.

Hanoi is the locality with the most delayed real estate projects. According to incomplete statistics, Hanoi currently has several hundred delayed projects, equivalent to an area of ​​over 5,000 hectares that remain undeveloped, causing significant waste.

Some real estate projects have been delayed for up to a decade, such as the Kim Chung - Di Trach urban area (now renamed Hinode Royal Park urban area) in Hoai Duc district. Another example is the Nam An Khanh urban area developed by Song Da Urban and Industrial Zone Development Investment Joint Stock Company (Sudico), once promoted as a paradise for living. However, land clearance remains incomplete, and many villas and townhouses are left abandoned, resulting in a waste of resources. A representative from Sudico's media team stated: Due to the recent downturn in the real estate market, many villa investors are holding onto their land, waiting for a positive market turnaround. This has led to some villas being left abandoned, detracting from the overall aesthetics of the project.

In Phu Tho province, the Thanh Thuy Hot Spring Resort project, invested by Song Thao Co., Ltd., covers an area of ​​over 87 hectares, has been delayed for more than two decades, and is plagued by numerous violations... The project is currently abandoned, and locals are using it as a grazing area for livestock.

Mr. Tran Van Kien, Vice Chairman of the People's Committee of Thanh Thuy Town, frankly stated: "The problem with the Thanh Thuy hot spring project currently lies in the capacity of the investor. The project has a clean site and complete legal documentation, but it cannot be implemented due to the investor's weak capabilities. Our locality is also very anxious because voters have raised many concerns, but the authority to handle this belongs to Phu Tho province."

The Thanh Thuy hot spring resort project is currently abandoned, and locals are using it as a grazing area for livestock.

Ha Nam province has another equally bizarre real estate project: transforming land designated for public works and services into commercial housing (shophouses) that are then left abandoned. This is the Thang Loi Thanh Liem Commercial and Housing Complex project. To date, the project's structure is complete, some residents have moved in, many planned components remain unbuilt, and some structures show signs of deterioration and abandonment.

According to Inspection Conclusion Notice No. 161/TB-TTCP dated January 17, 2023, issued by the Government Inspectorate regarding the Thang Loi Thanh Liem Company's comprehensive commercial center project in Ha Nam province, land was allocated without auctioning the land use rights, violating Article 118 of the 2013 Land Law. More seriously, this land area was planned for public works, services, and commercial purposes, not for residential use, violating Article 26 of the 2009 Urban Planning Law and Article 14 of Government Decree 37/2010/ND-CP dated April 7, 2010.

Removing the "tumor"

Many localities have real estate projects that are behind schedule, or even stalled for years, including Hanoi, Quang Ninh, Phu Tho, and Hoa Binh. In Hanoi alone, there are currently hundreds of real estate projects that are behind schedule or have not yet been implemented. Many of these projects have received red alerts, and some have been decisively revoked by the Hanoi People's Committee.

A typical example is the Phuong Vien high-end housing project in Me Linh district, invested by Phuong Vien Trading and Tourism Services Joint Stock Company. The project was allocated land in 2008 but was slow to develop. Therefore, the Hanoi People's Committee issued Decision No. 4058/QD-UBND to revoke the land allocation decision for the project. In addition, there are other projects such as: Truong Giang Construction Company with the villa and garden house construction project; Anh Duong Joint Stock Company with the Sunny Light villa area infrastructure construction project; Vinalines Vinh Phuc Real Estate Joint Stock Company with the Vinalines New Urban Area project… The Hanoi People's Committee has issued decisions to revoke the land allocation for these projects.

The villas and townhouses in the Tan Viet Urban Area Project, Hoai Duc district, are still sparsely populated.

Regarding the Thanh Thuy Hot Spring Resort Project, invested by Song Thao Co., Ltd., Mr. Ha Minh Duc, Deputy Head of the Land Management Department, Phu Tho Provincial Department of Natural Resources and Environment, stated: “In document 2308/UBND-KGVX dated June 21, 2022, the Phu Tho Provincial People's Committee directed the Provincial Tax Department to collect the outstanding land lease fees from Song Thao Company. Simultaneously, the Provincial Department of Planning and Investment, the Thanh Thuy District People's Committee, and other relevant agencies were tasked with reviewing and separating approximately 37 hectares from the total project area for the company to proceed with implementation. Mr. Duc added: Currently, the investor has not yet completed the procedures for approving the 1/500 detailed planning, therefore there is no basis for surveying and separating the area as directed by the Phu Tho Provincial People's Committee. On March 25, 2022, the Phu Tho Provincial People's Committee issued a decision to revoke the Investment Incentive Certificate for the project.”

Mr. Tran Nhu Long, Director of the Department of Natural Resources and Environment of Quang Ninh province, said: In the coming time, Quang Ninh will continue to review, inspect, and audit the land use of projects that are behind schedule and have prolonged the completion of technical infrastructure. The province will resolutely handle and reclaim land in accordance with the law, preventing the recurrence of "suspended" planning and "suspended" projects, and combating vested interests and corruption that lead to budget losses and wasted land resources, contributing to the healthy development of the real estate market.

These are some typical projects that have been resolutely revoked and enforced by local authorities. However, there are still many projects that are behind schedule, have been extended multiple times, and are overgrown with weeds, yet remain unaddressed. For example, in Quang Ninh, many projects such as the Cao Xanh - Ha Khanh New Urban Area; the The Bay View Tower mixed-use commercial and apartment project (Ha Long City)... are behind schedule. In addition, many real estate projects have been put into use but have low occupancy rates; many villas and shophouses, although owned, are not occupied, showing signs of deterioration, causing resource waste and detracting from urban aesthetics.

Mr. Nguyen Huu Nha, Vice Chairman of the People's Committee of Ha Long City, said: In recent times, the city has resolutely implemented a review and submitted proposals to the province for consideration and handling of dozens of projects that are behind schedule or in violation of the law, in order to avoid the situation of "hoarding land" for too long, allowing weeds to grow, causing waste of land resources, and affecting environmental sanitation and urban landscape.

For real estate projects, especially high-end ones, local authorities need to take strong action to inspect and decisively handle projects with serious violations, delays, and prolonged periods of time. They must also seriously eliminate projects that are weak in planning, have limited financial resources, or deliberately hoard land without implementing them.

We need to eliminate the mindset that if one province has high-end real estate projects, then our province must also have them.

Lesson 3: Staying temporarily in a million-dollar villa

Low-income people living in million-dollar villas rent villas and shophouses to live in, opening grocery stores, selling vegetables, or running beer stalls to make a living. It sounds unbelievable, but it exists in most urban areas that are supposed to be livable, civilized, and modern.

Turning villas and shophouses into… “markets”

It's easy to see that many villas and shophouses with wide frontages, located next to residential areas or at the foot of apartment buildings in Hanoi, are often rented out for cafes, restaurants, grocery stores, fast food outlets, fresh produce shops, etc. While not prohibited by law, this unintentionally creates a messy appearance for urban areas that are considered civilized and modern.

Adjacent to the shophouses, people rent them to open shops, restaurants, and other businesses.

Mr. Nguyen Quang Truong, a resident of Hoai Duc district, who rents a shophouse in the Tan Tay Do new urban area in Dan Phuong district, said: "My two friends and I rented the shophouse to sell fast food, coffee, etc. Initially, we rented it for 5 million VND/month (rented from the landlord - PV). Later, because we sell at night, we had to pay an additional 2 million VND/month to be allowed to sleep there."

A "service broker" specializing in renting shophouses here said: The tenants are mainly laborers from other provinces, who rent at low prices to open breakfast shops, vegetable stalls, pubs, etc. The rental agreement is not binding, there is no large deposit required, and the money must be returned when the landlord takes it back.

The concentration of small traders renting shophouses to conduct business has turned the area into an impromptu, makeshift market. A resident of the HHA apartment building in the Tan Tay Do urban area said: "While it's convenient for buying and selling, every morning and on weekends, there are a lot of buyers and sellers, and many vehicles enter and exit the urban area, posing a potential traffic safety hazard. Not to mention the shops discharging wastewater and garbage, creating a very unsightly mess."

Reporters conducting fieldwork in several urban areas in Hoai Duc and Gia Lam districts, and Nam Tu Liem, Bac Tu Liem, and Hoang Mai districts, observed a widespread phenomenon of villas and shophouses being rented out by their owners. Each location has its own unique characteristics and rental prices, but they all share a commonality: they contribute to the unsightly appearance of what was once a civilized and modern urban landscape.

In provinces and cities such as Hai Phong, Phu Tho, Ha Nam, Hung Yen, and Thanh Hoa, the situation is not much better. Although there are fewer tenants and lower prices, the situation remains chaotic. Meanwhile, abandoned properties are overgrown with weeds and show signs of deterioration.

Many "no's" in million-dollar villas

Posing as prospective tenants looking for temporary accommodation in a villa, we were given a tour of the Nam An Khanh urban area in Hoai Duc district, Hanoi, by Ms. Nguyen Thi Bich. Here, we occasionally saw villas and shophouses with occupants. Although the exteriors of the villas were still unfinished, with temporary doors made of plastic panels, some even with thin sheets of corrugated iron… inside, clothes hung haphazardly, workers made makeshift sleeping areas with wooden planks, some with mats spread directly on the concrete floor, cooking areas were set up temporarily, and, most notably, there were no proper toilets.

Ms. Bich asked, "How many people are you planning to rent the villa for? If there are many, you should rent the whole villa, with an area of ​​200-300 square meters, the price only ranges from 6-8 million VND/month, you can have as many people as you like. If you agree, let me know so I can contact the owner."

Most of the workers come from Nghe An, Thanh Hoa, Nam Dinh, Vinh Phuc, Tuyen Quang, etc. They live concentrated in villas and shophouses, working as cleaners, construction workers, mechanics, etc. during the day, they gather together in their million-dollar villas but lack many things: no electricity, no clean water, toilets that don't work...

The makeshift living conditions in a million-dollar villa of a freelance worker - Photo by Ngoc Vu

Le Khac Nam (from Thanh Hoa province), currently residing in a villa in Hoang Mai district, said: "I dropped out of school in the 9th grade and followed my neighbor here to work as a construction laborer. Now I'm a construction worker. If it weren't for everyone's support and guidance, I don't know where I would be now."

These past few days, with students on summer vacation, many children have been picked up by their parents from their hometowns to visit Hanoi. For the first time, these children are staying in million-dollar villas with their parents. Ms. Le Thi Hai (from Nghe An province) said: "My child was on summer vacation and said she missed her parents, so I brought her here to play. There's no air conditioning, and some nights it's so hot that we can't sleep until late at night. I feel sorry for my child, but I have no other choice. I plan to let her stay for one or two weeks before taking her back to our hometown to live with her grandparents."

Ms. Hoang Thi Sy, the head chef who cooks for more than 30 workers, said: "These past few days, the dormitory area has been much livelier. Five children have been brought up by their parents to play. During the day, I cook and also act as a babysitter. The good thing is that although they are all from different places, they play together very harmoniously and are considerate of each other."

In some urban areas in Hoa Binh, Ha Nam, Quang Ninh, etc., there is a situation where low-income workers are temporarily residing in villas.

Shophouses still exist, though not in large numbers. When we approached them from a journalistic perspective, they flatly refused to answer or, in some cases, proactively requested anonymity or that we not be photographed, citing fear that the landlord or developer would not allow them to continue renting.

(Note: Character names in this article have been changed to protect privacy.)

Lesson 4: Improving the institutional framework and bringing high-end real estate back to its true value.

Real estate developers and investors need to sacrifice small, short-term gains for long-term benefits, proactively restructure their businesses, focus on core projects, reduce debt, effectively control corporate bonds, and limit excessive reliance on credit institutions. As for regulatory bodies, the State needs to quickly finalize a comprehensive legal framework from the central to local levels and clearly define the division of management powers, avoiding overlapping responsibilities and a lack of coordination as is currently the case.

Sacrificing small benefits

For businesses, profit is always the top priority, and sacrificing short-term gains for long-term overall benefits is indeed a very difficult choice. However, for a company specializing in high-end real estate, it requires courage, foresight, and a certain level of understanding to face the need to sacrifice unprofitable or low-profit projects, while simultaneously restructuring the business, reducing debt, and focusing on core business and projects. Only then can it be considered a wise decision.

Mr. Dinh Van Nghi - Chairman of the Board of Directors and General Director of VinaPol Joint Stock Company - a company with a long history of real estate project development, frankly shared: Real estate businesses should take advantage of this time to reassess themselves, restructure their businesses, reduce debt, reduce dependence on credit institutions, boldly cut off high-risk projects, and avoid scattered and fragmented investments. They should avoid chasing quantity and rapid development, because once difficulties arise, it will be too late to turn back.

For investors, besides having money, it's crucial to thoroughly research the legal aspects of the real estate project they intend to invest in or purchase for long-term residence. This isn't difficult, but it requires serious consideration to avoid a "locking the stable door after the horse has bolted" situation. In reality, many high-end real estate projects, despite being under construction and even having residents, still lack complete legal procedures and integrated infrastructure. This leads to situations where villas and shophouses are owned but unoccupied, left abandoned and overgrown with weeds, resulting in a waste of resources.

Domestic real estate businesses are having to tighten their belts, reduce debt, lessen their dependence on credit institutions, and boldly cut high-risk projects, avoiding scattered and fragmented investments - Illustration photo.

Local authorities should also carefully select reputable investors with strong financial capabilities, avoiding blindly following trends and preventing the uncontrolled, unplanned development of high-end real estate. This is a flawed approach that could lead to many negative consequences later on. Furthermore, local authorities need to strengthen inspection and supervision, and frankly address violations by investors, delays, and even project revocation, preventing abandoned projects that waste resources and result in tax and fee losses for the State.

The "hand " of the State is needed.

In reality, the real estate market in general, and the high-end real estate market in particular, has long been lax in pricing, while taxes and fees on this sector remain low and disproportionate to the market's development pace. This has led to widespread speculation and price inflation, making it difficult for those with genuine housing needs to access housing. Not to mention the price disparity between urban and rural areas, even within major cities like Hanoi, Hai Phong, and Ho Chi Minh City, there are significant price differences. Therefore, many real estate experts believe that the State needs to directly intervene in regulating the real estate market, as the State currently possesses sufficient legal tools to control this.

According to many experts, the high-end real estate market is experiencing bottlenecks, leading to an imbalance between supply and demand, which in turn reduces the growth momentum of numerous other industries. Therefore, it is necessary to immediately revitalize the real estate market. This will increase the flow of domestic and foreign capital into real estate, and mergers and acquisitions of real estate companies and projects will proceed according to market principles... thereby contributing to economic growth and creating a ripple effect for the development of all other industries.

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Resolution 18-NQ/TW dated June 16, 2022, of the Central Committee of the Communist Party of Vietnam stated: "Continuing to innovate and improve institutions and policies, enhancing the effectiveness and efficiency of land management and use, creating momentum to make our country a developed high-income country," which is expected to have a strong multifaceted impact on the Vietnamese real estate market in the coming period.

On the other hand, administrative procedures for resolving land-related issues for businesses implementing projects, although streamlined, still face obstacles and delays.

This vicious cycle repeats itself, from one project to another, from one enterprise to another, year after year... hence the phrases "fear of insufficient legal basis," or "waiting for instructions from superiors," causing investment projects to stall and fail to be implemented, resulting in the ineffective use of social resources.

Regarding investment capital support, a real estate development company (who wished to remain anonymous) stated: "Currently, credit institutions are doing a very good job of postponing and extending debt repayments for businesses: The government has directed the 'loosening' of credit limits for real estate, but in my opinion, this should be accompanied by facilitating bond issuance for businesses. Currently, we find it very difficult to access bank loans. Fear has spread widely and risks becoming a 'social disease'."

Many real estate experts believe that the State needs to directly intervene in regulating the real estate market, because currently the State has sufficient legal tools to control this.

The completion of institutional and policy frameworks for land management and use, in a manner consistent with the development of a socialist-oriented market economy, will unlock land resources, enabling the State to manage, exploit, and utilize land in a way that ensures maximum efficiency, sustainability, and effectiveness. To achieve this, the completion and amendment of the Land Law, Housing Law, and Real Estate Business Law, among others, must ensure consistency and uniformity, a pressing need. Furthermore, it is necessary to streamline the state land management apparatus, ensuring efficiency, uniformity, eliminating intermediaries, promoting decentralization and delegation of power, accompanied by mechanisms for inspection, supervision, and control of power.

Representative Dang Bich Ngoc - Delegation of the National Assembly of Hoa Binh Province

The problem of stalled and delayed projects needs to be resolved.

The draft Land Law (amended) submitted to this 5th Session is based on the compilation of opinions from the entire population after a widespread consultation process. I personally highly appreciate the efforts of the Ministry of Natural Resources and Environment in compiling and gathering opinions from voters and the people nationwide, and in the process of screening, evaluating, and adjusting the draft Land Law (amended) submitted to the 15th National Assembly at this 5th Session.

The draft law needs to address the issue of stalled and delayed projects. For example, currently in many provinces and cities, numerous projects have been granted investment licenses but, due to various objective factors, are delayed in implementation or only undergo a few procedural steps before being left unimplemented for 5 or even 10 years, causing waste of land resources and frustration among the people.

I hope that this revised draft of the Land Law will have strict and specific regulations to help localities address this issue fundamentally and thoroughly. Because, in the past, many projects have been stalled or delayed, but when inspected, the investors still offer excuses such as: having partially completed the project or due to objective circumstances.

Lawyer Nguyen Hong Bach - Director of Hong Bach & Associates Law Firm

"Investing" money requires caution.

Currently, amidst a volatile economic situation, real estate investment remains a safe haven for investors. Therefore, real estate projects are attracting a great deal of attention. Consequently, thoroughly researching real estate projects, especially high-end ones, is essential and meaningful for investors.

However, real estate investors need to be cautious when making a purchase. Firstly, they must thoroughly research the legal aspects and the reputation and credibility of the developer. Secondly, they must be aware of the project's progress; therefore, buyers need to monitor and update the construction progress to avoid risks that could affect their rights and interests. Thirdly, buyers need to pay attention to the legal validity of documents such as the project's investment license and construction permit, as these documents will make it easier to resolve disputes and protect their rights. Fourthly, they must carefully read and understand the terms and conditions of the contract before signing and making a purchase.

Ms. Do Thu Hang - Senior Director, Research and Consulting Department, Savills Hanoi

Pay attention to the legal aspects of the project.

The supply of high-end real estate projects currently being sold directly by developers is very limited, even scarce, while the number of newly launched real estate projects can be counted on the fingers of one hand. This is partly due to the impact of the global financial crisis, and partly because many projects are incomplete or have difficulty completing the legal procedures to begin construction. These are the main reasons why the supply of high-end real estate will be limited in the near future.

However, investors need to be equipped with the clearest possible information about the project, along with specific commitments that bind multiple parties. Furthermore, a comprehensive, complete, and clear legal framework with detailed guidelines will help filter out unqualified investors and promote sustainable market development, preventing significant price fluctuations while still ensuring benefits for the State.

Source: https://baotainguyenmoitruong.vn/bat-dong-san-cao-cap-san-choi-trieu-do-con-lang-phi-360958.html