Clearing up commercial housing projects

Pursuant to Resolution No. 171/2024/QH15 dated November 30, 2024 of the National Assembly (NQ171) on piloting the implementation of commercial housing projects through agreements on receiving land use rights or having land use rights, the Government is responsible for directing relevant ministries and ministerial-level agencies, within the scope of assigned functions and tasks, to organize the implementation, monitor, inspect and examine the implementation of this resolution.

Untangling many commercial housing projects helps the real estate market develop

Professor Dr. Dang Hung Vo, former Deputy Minister of Natural Resources and Environment (former), affirmed that the application of Resolution 171 will solve bottlenecks for many projects.

It is worth noting that, before Resolution 171 was issued, the 2024 Land Law had not yet met the expectations of the real estate market, as it still restricted the implementation of commercial housing projects on non-residential land. This made it difficult for businesses and people to access residential land, especially when most new and large-scale real estate projects are often implemented on non-residential land.

Therefore, according to Professor Dang Hung Vo, it is expected that the housing supply shortage will be resolved by being more flexible in creating land funds for businesses to develop commercial housing.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that Ho Chi Minh City announced that there are more than 440 projects registered to implement according to Resolution 171, with an area of about more than 2,000 hectares. However, this number of projects only counts the old Ho Chi Minh City, while the old Binh Duong has about 200 more projects. Thus, not counting the old Ba Ria - Vung Tau, there are more than 640 projects registered for pilot. It is estimated that if each project has about 830 houses, Ho Chi Minh City will have more than 530,000 houses in the next 3-10 years.

Currently, Ho Chi Minh City has many land plots, many types of land, and some of them are related to public land. Therefore, Resolution 171 allows for review to be submitted to the City People's Committee and the People's Council for approval. The old Binh Duong has been submitted for approval before. According to Mr. Chau, this is very positive information for the market and the economy. This Resolution focuses on investors with available land funds. These projects, after being approved by the People's Council, will quickly complete investment approval procedures. Projects receiving additional transfers are also likely to have land funds soon.

"For example, previously, if a business had 10 hectares of land, it would be faster if it wanted to buy 1-2 hectares more. In addition, the Government and ministries are also focusing on resolving issues through working groups and the Government's Steering Committee. In addition, Ho Chi Minh City leaders also committed to resolving issues related to 68 ongoing and unimplemented projects that HoREA has proposed among hundreds of projects being resolved," said Mr. Chau.

According to Mr. Le Hoang Chau, Ho Chi Minh City is promoting the issuance of pink books to people, strengthening solutions to complete the calculation of additional land use fees. In addition, Ho Chi Minh City will also regularly hold periodic meetings with HoREA to find ways to remove obstacles for businesses.

Dr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said that the country has about 1,000 stalled projects, equivalent to 30 billion USD of capital tied up. When this capital flow is cleared, it will create a big boost for the economy, arousing confidence from businesses and investors.

Khơi thông dự án nhà ở thương mại - Ảnh 1. — Chuong Duong Home social housing project, Thu Duc ward, Ho Chi Minh City Photo: Quoc Anh

Expect hundreds of pilot projects

The Ho Chi Minh City Department of Construction has just commented on the conditions, criteria, and scope of locations and land areas planned to implement the pilot project of commercial housing development through agreements on receiving land use rights or having land use rights according to Resolution 171.

Previously, implementing Resolution 171, the Department of Agriculture and Environment of Ho Chi Minh City requested the Department of Construction to give opinions on 442 locations and land plots planned to implement the pilot project of developing commercial housing according to Resolution 171.

The Department of Construction has commented on the suitability of the location and the planned land plot with the general planning project, detailed planning project, and 1/2,000 zoning plan; suitability with the housing development program and plan; and traffic connection of the current location and land plot with the surrounding area's infrastructure.

For current projects that do not determine the location, boundaries, and legal status of the state-managed land in the projects, the Department of Construction said there is no basis for comment. For land areas implementing projects that have areas of facilities that must be relocated according to construction planning and urban planning as prescribed in Resolution 171, determining the area of relocated facilities is not the function of the Department of Construction.

According to the Department of Construction, currently, the areas and locations where the project is being implemented have not been approved for investment policy, many investors are still negotiating to transfer land use rights/do not have land use rights, have not been approved as investors, have not yet established investment projects, and have not yet had their project implementation progress approved for any phase. Therefore, only when the project is consistent with the general planning, detailed urban planning; the project is implemented (the competent authority has approved the investment policy, completed land and planning laws, etc.) will it be recognized as consistent with the objectives and orientations of the program and housing development plan in phases.

In the center of Ho Chi Minh City, the project of Tan Thanh Investment and Trade Company Limited with an area of over 2,000 m2, adjacent to Thi Sach Street and Thai Van Lung Street, is an example. According to the Department of Construction, this land is partly suitable for the general planning project, partly for the 1/2,000 scale zoning plan. The housing project is suitable for the land with the function of complex land use planning according to the 1/2,000 scale zoning plan.

However, the functions of commercial services, offices, apartments and public parking lots and the architectural planning criteria of the project (approved by the Ho Chi Minh City People's Committee in 2017) have changed compared to the functions (offices, apartments for on-site resettlement of households within the project area) and the architectural planning criteria have been updated in the planning project of the 930-hectare central area. Therefore, it is necessary to carry out the procedure of local adjustment of the 1/2,000 scale zoning plan, as a legal basis for implementing the next prescribed procedures. Previously, the People's Committee of District 1 (old) commented that the development of a housing project on this land is in line with the orientation and group of housing development solutions in the housing development program and plan. In 2018, the Ho Chi Minh City People's Committee issued an official dispatch approving the investment policy and recognizing the investor for Tan Thanh Trading Investment Company Limited.

Pursuant to Resolution No. 171/2024/QH15 of the National Assembly, the Provincial People's Committee shall submit to the People's Council of the same level for approval a resolution promulgating a list of land plots planned for pilot projects. The Provincial People's Council shall consider and approve the list of land plots planned for pilot projects at the same time as approving the list of works and projects requiring land acquisition.

Summary in 2028

According to Resolution 171, the Government will review 3 years of implementing Resolution 171 in 2028 and summarize 5 years of implementation to report to the National Assembly at the session at the end of 2030.

The People's Councils and People's Committees of provinces and centrally run cities are responsible for organizing the implementation of the Resolution within their localities. The People's Committees of provinces and centrally run cities are responsible for reporting to the Government on the annual implementation results before December 31 during the pilot period; reporting the results of the 3-year preliminary review at the local level before January 31, 2028; and reporting the results of the 5-year summary at the local level before January 31, 2030.

To accelerate the implementation of Resolution 171, on April 1, 2025, the Government issued Decree No. 75/2025/ND-CP detailing the implementation of Resolution 171. Accordingly, within 15 days from the end of the registration period for implementing housing projects under the pilot mechanism, the competent land management agency at the provincial level shall review and evaluate the conditions and criteria of the land plots proposed to implement the pilot project; make a list of land plots expected to implement the pilot project and submit it to the Provincial People's Committee.

Mr. Le Huu Nghia, General Director of Le Thanh Construction Joint Stock Company:

Capital will be abundant

Capital for the real estate market will be abundant from 2025, because once the project is unstuck, access to credit capital from banks will be easier. Therefore, the real estate market may boom in 2027.

Professor Hoang Van Cuong, Member of the National Assembly's Finance and Budget Committee:

Removing many obstacles

Resolution 171 will remove many obstacles for stalled projects, especially projects related to land transfer and legal procedures. From these solutions, after half of 2025, many "golden land" projects will have their obstacles removed and continue to be implemented without re-bidding, only needing to adjust planning or prices.

Source: https://nld.com.vn/khoi-thong-du-an-nha-o-thuong-mai-196250716215750344.htm