Hanoi (VNA) – Representatives of the Ministry of Natural Resources and Environment (MoNRE) and the Ministry of Construction (MoC) said with the recent entry into force of the Land Law, the Law on Real Estate Business, and the Housing Law, the legal corridor for the real estate market will improve leading to more transactions.
The new laws are expected to stop fraud in housing and land transactions, promoting transparency and sustainable development in the real estate market.
Tackling bottlenecks, boosting market transparency
Vuong Duy Dung, Deputy Director of the MoC’s Housing and Real Estate Market Management Agency, said that the three laws, taking effect on August 1 – five months ahead of the initial schedule, will remove any policy obstacles, especially those related to social housing.
He noted the old versions of the laws are weak around investment in commercial housing, social housing development, and conditions for trading revoked properties. However, when the three amended laws come into force, some of those problems will be mitigated.
Citing revisions to the Housing Law, he said the procedures for developing social housing have been streamlined, with preferential treatment available for investors.
Dung said those revisions should help improve the inventory on real estate and social housing.
Sharing the same view, Le Van Binh, Deputy Director of the MoNRE’s Land Department, said the three laws that came five months ahead of the initial schedule (January 1, 2025), is highly beneficial to the real estate market. Access to land should be transparent for new projects that come online.
Dao Trung Chinh, Director of the MoNRE’s Department for Land Resources Planning and Development, held that the 2024 Land Law should boost the real estate market as it considers possible obstacles facing projects, thereby contributing to the market’s transparent development.
Appropriately adjusting supply - demand, prices
Vice Chairman and General Secretary of the Vietnam Banks’ Association Nguyen Quoc Hung noted the banking sector is mobilising capital to provide real estate loans. This includes funds for social housing, so money is not inadequate, especially when it comes to the projects meeting the requirements stipulated by law.
A variety of banks are ready to provide support and reduce interest rates for such projects, Hung said, adding that the State Bank of Vietnam is also issuing strong directions on this issue.
Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association and Chairman of the Vietnam Association of Real Estate Brokers, said that it has been years since any new projects have been licensed. Most of the available projects are old ones, resulting inadequate and poor-quality supply, particularly for low-income earners.
He voiced his hope that with the new laws, obstacles to many projects will be removed and the supply of quality housing segments such as apartment buildings and condotels will increase, thus helping ease demand - supply and price pressure./.
