Land plots on the outskirts of Hanoi are "ignored", it is difficult to distinguish between cutting losses or cutting profits; expanding the target group for buying social housing

Land plots are gloomy, liquidity is poor, recovery will be slow, Bac Giang expands the subjects eligible to buy social housing, the Ministry of Justice "blows the whistle" on regulations on auctioning agricultural land in Hanoi... are the latest real estate news.

Latest real estate. (Source: XD Newspaper)

It is unlikely that suburban land prices will "heat up" again.

According to real estate market reports from many research units, in the first and second quarters of this year, former suburban land hotspots of Hanoi such as Hoai Duc, Ba Vi, Thanh Tri, Soc Son, Dong Anh, Gia Lam districts... recorded a decrease in selling prices compared to the fourth quarter of 2022.

In fact, it is still very difficult to increase liquidity of suburban land even though prices have decreased in many places. These products have been pushed up too high in recent times. Buyers are becoming more cautious when entering the market because the selling price is still high and many places do not guarantee legality.

Commenting on the current state of land development in the coming time, many experts believe that the current market developments are creating great pressure for land speculators using financial leverage. Even when the real estate market improves, the land segment will often be the segment that recovers more slowly than other segments.

Mr. Nguyen The Diep - Vice President of Hanoi Real Estate Club - said that for many months now, many landowners have been advertising their properties for sale, but it is very difficult to distinguish between real loss-making and profit-making.

Mr. Diep also said that many people want to buy suburban land for long-term investment but are still afraid that if they buy at a high price, the profit rate will be lower. Therefore, if they cannot find a lower-priced land in a suitable location, some investors have switched to the rental real estate investment segment.

"Never before have investors been as indifferent to land as they are now, proving that the real estate market is gradually filtering out speculation and moving towards real investment," Mr. Diep emphasized.

According to Mr. Nguyen Van Dinh - Vice President of Vietnam Real Estate Association, the market is still facing difficulties, liquidity is still weak, so the suburban land price will hardly increase again at this time.

"In the context of the real estate market slowing down, many landowners and brokers are advertising "loss-cutting" and lowering prices to attract buyers... However, the selling price is only reduced compared to the peak and compared to the real value, it is still quite high," said Mr. Dinh, who recommended that buyers carefully screen the incentive information as well as information about the land before intending to "pay".

Regarding this reality, Mr. Nguyen Quoc Anh - Deputy General Director of Batdongsan.com.vn - said that the current difficulties of the real estate market are due to the fact that buyers are holding their money and waiting for the real estate price to decrease further, in addition, a large number of people still have a negative view of the real estate market. In addition, investors are also under pressure to pay and pay high interest.

HoREA proposes to abolish some "inappropriate" regulations of Circular 06

After the State Bank issued Circular 10/2023/TT-NHNN (Circular 10) to stop implementing some contents of Circular 06/2023/TT-NHNN (Circular 06) to improve credit access for businesses, the Ho Chi Minh City Real Estate Association (HoREA) continued to make recommendations to the Prime Minister and the State Bank to consider amending and supplementing some other regulations.

Accordingly, HoREA proposed to amend and supplement Point d, Clause 5, Article 16 of Circular 22/2019/TT-NHNN (amended and supplemented in Article 1 of Circular 08/2020/TT-NHNN) in the direction of requesting an extension of 12 months, because in just over 1 month (October 1, 2023), credit institutions must comply with the maximum ratio of short-term capital used for medium- and long-term loans of 30%.

Next, HoREA proposed that the State Bank consider allowing credit institutions to purchase corporate bonds for the purpose of restructuring their own debts, to ensure consistency and consistency with Clause 2, Article 1 of Decree No. 65/2022/ND-CP (amending Clause 2, Article 5 of Decree 153/2020/ND-CP).

In addition, HoREA also recommended that the State Bank continue to review and consider amending and supplementing a number of "inadequate" regulations in Circular No. 06 that businesses, Associations and experts have proposed, because Circular 10 of the State Bank has only suspended the implementation of Clause 8, Clause 9 and Clause 10, Article 8 of Circular No. 39/2016/TT-NHNN (supplemented by Clause 2, Article 1 of Circular No. 06/2023/TT-NHNN) from September 1, 2023 until the effective date of the new legal document regulating these issues, but at present there is no legal document on amending, supplementing or abolishing these regulations.

Therefore, although Circular 10 temporarily suspends the enforcement of some regulations prohibiting lending, the Association recommends that the State Bank abolish these regulations.

Ministry of Justice 'blows whistle' on Hanoi's regulations on agricultural land auctions

According to Vietnamnet, the Department of Inspection of Legal Documents (Ministry of Justice) has just requested Hanoi to handle illegal content related to agricultural land auctions, and consider and handle responsibilities for collectives and individuals who have advised, built, and issued illegal documents.

Director of the Department of Inspection of Legal Documents (referred to as the Department of Inspection of Documents) Ho Quang Huy has just signed a document concluding the inspection of Decision No. 24/2022 of the Hanoi People's Committee regulating the auction of land use rights to allocate or lease land in the area.

According to the Department of Document Inspection, Decision No. 24/2022 has illegal content.

Specifically, Clause 1, Article 1 of this decision states: “Agricultural land used for public purposes as prescribed in Clause 3, Article 132 of the Land Law: The People's Committee at the district level organizes an auction for agricultural use for a period of 5 years”.

However, for agricultural land used for public purposes but not yet used, according to the provisions of Clause 3, Article 132 of the Land Law, the People's Committee at the commune level will lease it to local households and individuals for agricultural production and aquaculture through auction. The land use term for each lease shall not exceed 5 years.

Therefore, the decision of the Hanoi People's Committee to assign the authority to auction agricultural land for public purposes is not in accordance with the provisions of the Land Law.

On the other hand, Clause 2, Article 7 of the 2013 Land Law stipulates that the Chairman of the People's Committee at the commune level is the person responsible to the State for the use of agricultural land for public purposes.

"Therefore, the regulation of the Hanoi People's Committee on assigning the authority to auction agricultural land used for public purposes but not yet used to the District People's Committee will affect the determination of the entity responsible to the State for the use of agricultural land for public purposes" - the document of the Document Inspection Department clearly stated.

Also according to the Document Inspection Department, Clause 6, Article 1 of Decision No. 24 regulating the public announcement of land use rights auctions conducted in the Kinh te Do thi newspaper, Ha Noi Moi newspaper, and Dau Thau newspaper is "without legal basis".

The Department cited Article 57 of the 2016 Law on Property Auction, stating that this law does not limit specific newspaper pages when making public announcements.

Regarding the regulation on deposit payment, Hanoi's decision was also assessed by the Ministry of Justice as inconsistent with the provisions of the 2016 Law on Property Auction when it did not specify that only in cases where the deposit is worth less than 5 million VND, the auctioneer can pay directly.

From there, the Department of Document Inspection recommended that the Hanoi People's Committee urgently handle the above illegal contents.

At the same time, review the implementation process of Decision No. 24/2022 to take measures to remedy the consequences caused by the implementation of illegal regulations (if any).

In addition, the Department of Document Inspection also recommended reviewing and handling responsibilities for groups and individuals who advised, drafted, and issued illegal documents.

Bất động sản mới nhất. Nhà ở xã hội. (Nguồn: VNN)

In 2021-2022, Bac Giang province will step up approval of investment policies and selection of investors to build social housing projects for workers. (Illustration photo - Source: VNN)

Bac Giang expands the target group for social housing purchases

Bac Giang province has just issued a decision approving adjustments and supplements to the Project on developing housing for workers in Bac Giang province until 2025, with a vision to 2030 (Project).

According to the Project, the number of workers in need of social housing in the 2021-2025 period is about 424,000 people. The goal by 2025 is for the province to meet 80% of the demand for social housing for workers, equivalent to about 339,000 people.

In 2021-2022, the province will accelerate the approval of investment policies and the selection of investors to build social housing projects for workers. The province has 15 social housing projects for workers, expected to be implemented by 2025.

By the end of 2025, if these projects complete all products, they will provide about 29,762 social housing apartments for workers.

Specifically, social housing projects that have been and are expected to be implemented according to the plan in the 2021-2025 period will form 40,697 social housing apartments.

With the implemented social housing projects for workers, it is allowed to expand the beneficiaries of social housing according to the law, on the basis of giving priority to workers working in industrial parks and clusters.

With new projects being implemented and having products in the period of 2026-2030, Bac Giang province focuses on ensuring the structure to meet the demand for social housing with a total number of houses to be built of 46,003.

It is forecasted that the total number of workers in Bac Giang industrial parks by the end of 2025 will be about 262,284 people, and by 2030 about 487,584 people.

Meanwhile, in the 2021-2025 period, the demand for social housing for low-income people is forecast to be 13,106 units; in the 2026-2030 period, this demand is forecast to be about 31,351 units.

Therefore, in order to call for investment and meet the housing needs of low-income people in the province, Bac Giang has expanded the beneficiaries, not only workers but also low-income people can participate in buying social housing in the projects.

Source