Ho Chi Minh City needs to respond to 'variations'

Ho Chi Minh City has officially requested that real estate project investors in the area are not allowed to divide and sell plots of land in their projects to organizations and individuals to build their own houses. Many opinions say that Ho Chi Minh City needs a plan to prevent possible "transformations".

The Law on Real Estate Business takes effect from August 1, 2024, which does not allow projects to divide and sell land plots in urban areas.

Field delegation inspects the management of State-owned land in Binh Chanh district, Ho Chi Minh City. (Photo: Thanh Dao).

Recently, to implement the Law on Real Estate Business, the People's Committee of Ho Chi Minh City issued Decision No. 83/2024 on regulations on determining areas where real estate project investors and housing construction investment projects are allowed to transfer land use rights with technical infrastructure to organizations and individuals to build their own houses in the area.

With this decision, Ho Chi Minh City officially regulates the ban on land subdivision and sale to deal with this painful situation over the past time. In particular, real estate project investors in the area are not allowed to subdivide land plots for sale in the project to organizations and individuals to build their own houses. According to this regulation, in addition to wards and districts, land in 5 outlying districts, including: Binh Chanh, Hoc Mon, Can Gio, Cu Chi and Nha Be are not allowed to be subdivided and sold.

Meanwhile, the city only regulates land division allowing households and individuals with land that meets the conditions to be considered for land division.

Prevent subdivision and sale of land

Regarding the content of Decision 83/2024 of the Ho Chi Minh City People's Committee, Lawyer Nguyen Van Hau - Member of the Central Committee of the Vietnam Fatherland Front, Vice Chairman of the Ho Chi Minh City Bar Association, commented that the new decision of Ho Chi Minh City will have a major impact on the city's real estate market, including direct impacts on the business activities of entities involved in real estate business and the recent indiscriminate subdivision and sale of land.

Banning the subdivision and sale of land will help many cities solve the problem of 'disordered planning' and 'price inflation' in the real estate market. (Photo: Dai Doan Ket).

Lawyer Hau also predicted that after Decision 83/2024 is issued, it will be inevitable that there will be conflicting opinions from the people, business community and real estate companies.

According to Clause 6, Article 31 of the Law on Real Estate Business 2023, one of the conditions for transferring land use rights for land with technical infrastructure in real estate projects to individuals to build their own houses is: " Land not located in the ward, district, city of a special, type I, type II and type III urban area; not subject to auction of land use rights to invest in housing construction projects according to the provisions of the Land Law. For the remaining areas, the Provincial People's Committee shall, based on local conditions, determine the areas where project investors are allowed to transfer land use rights with technical infrastructure to individuals to build their own houses ".

Lawyer Nguyen Van Hau predicts that the new decision of Ho Chi Minh City will have a big impact on the city's real estate market.

Thus, Lawyer Nguyen Van Hau acknowledged that Ho Chi Minh City has specified the provisions of the Law on Real Estate Business. In particular, the above details are guided by Article 2 of Decision No. 83/2024. Specifically, investors of real estate projects and housing construction investment projects throughout Ho Chi Minh City It is not allowed to transfer land use rights with technical infrastructure in real estate projects or housing construction investment projects to organizations or individuals who build houses themselves.

Except, in the case of investors of real estate projects, housing construction investment projects with resettlement objectives using land in communes, towns, and districts of the city, ensuring the conditions according to regulations, they are allowed to transfer the right to use land with technical infrastructure in real estate projects, housing construction investment projects with resettlement objectives using land to individuals to build their own houses.

Comparing the content of the Law on Real Estate Business with Decision No. 83/2024, Lawyer Nguyen Van Hau said: This decision of the Ho Chi Minh City People's Committee has significantly narrowed the provisions of the Law on areas where project investors are allowed to transfer land use rights with technical infrastructure to individuals to build their own houses.

"However, this is not considered illegal because The Law on Real Estate Business has empowered the People's Committee of Ho Chi Minh City to decide on the areas where project investors are allowed to transfer land use rights with technical infrastructure to individuals to build their own houses, based on local conditions," Lawyer Hau commented .

In general, the latest regulations of the HCMC People's Committee will help the "locomotive" of the whole country to solve many problems related to the situation of indiscriminate subdivision and sale of land, destroying planning. At the same time, Minimize the situation of people arbitrarily building without permission, not only that, but also help reduce legal risks for home buyers, requiring real estate project investors in the area to improve the quality of their products synchronously . In addition, Decision 83/2024 is also consistent with the Project " Investment - construction of districts into districts (or cities under Ho Chi Minh City) in the period of 2021-2030" that the City is building, specifically by 2030, districts will focus on investing in infrastructure construction towards urban targets to become cities under Ho Chi Minh City.

Coping with 'variants'

As soon as Decision 83/2024 of the Ho Chi Minh City People's Committee was issued, the Ho Chi Minh City Real Estate Association sent a petition to the City People's Committee, raising many concerns.

Talking to reporters of Dai Doan Ket Newspaper on the morning of November 1, Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association said that the Association also sent a document to the Vietnam Fatherland Front Committee of Ho Chi Minh City regarding the proposal to specify the areas where real estate and housing project investors are allowed to transfer land use rights with technical infrastructure to individuals to build houses in communes, excluding towns in 5 districts in Ho Chi Minh City.

According to Mr. Le Hoang Chau, in the 2023 Law on Real Estate Business and the 2023 Law on Housing, Ho Chi Minh City is a special urban area, so only in cases of land in wards, districts, and cities of special urban areas (including 16 districts and Thu Duc City), it is stipulated that investors are not allowed to transfer land use rights with technical infrastructure to individuals to build their own houses.

Previously, the Ho Chi Minh City Real Estate Association sent a document to the Ho Chi Minh City People's Committee, the Department of Construction and the Ho Chi Minh City Fatherland Front Committee, recommending that land subdivision and sale in communes in 5 districts of Ho Chi Minh City should still be allowed. Because, if land subdivision and sale in 5 districts is banned, it is not in accordance with the provisions of the Law on Real Estate Business and the Law on Housing.

Therefore, the Association has proposed that the People's Committee of Ho Chi Minh City provide detailed regulations on determining areas where real estate and housing project investors are allowed to transfer land use rights with technical infrastructure to individuals to build their own houses in communes, excluding towns in 5 districts in the city.

Regarding the "post-" impact of Decision 83/2024 of the Ho Chi Minh City People's Committee, Lawyer Nguyen Van Hau - Member of the Central Committee of the Vietnam Fatherland Front, Vice Chairman of the Ho Chi Minh City Bar Association, said that the application of this Decision could make the supply of land in Ho Chi Minh City even more scarce, not meeting the needs of the people. Therefore, leading to the possibility that the price of previously subdivided land will increase sharply in the near future and limit the number of buyers due to lack of financial capacity.

Sharing the same opinion, Engineer Tran Van Phuong, director of a real estate brokerage company in Thu Duc City, said: If the regulation prohibits the division of land into plots for sale, Ho Chi Minh City needs to prepare for the possibility that investors, organizations, and individuals "circumvent the law" to separate land plots. In particular, the scope of the new regulation on land division still allows households and individuals with land to be considered for land division if they meet the conditions. If allowed to "transform", the problem of dividing land into plots for sale will develop in a more sophisticated and negative direction, affecting the real estate market in general.

Because it is located next to District 7, Nha Be District, Ho Chi Minh City currently has a very fast urbanization rate.

In terms of urbanization, Architect Nguyen Van Bieu - Director of Bhomes LLC said that the new regulation defines that in addition to wards and districts, land in 5 suburban districts, including Binh Chanh, Hoc Mon, Can Gio, Cu Chi and Nha Be, is also not allowed to be divided into plots or sold. "Over the past years, we all know that, despite being "labeled" as suburban districts, the urbanization speed of some places, such as Binh Chanh (especially Trung Son area), Nha Be (Phuoc Kien area),... has increased rapidly. Modern urban infrastructure, many places even have a faster infrastructure construction speed and population concentration than some central districts," Architect Nguyen Van Bieu analyzed.

Sharing with reporters of Dai Doan Ket Newspaper, representatives of some businesses and people are also concerned that although there are no more cases of small real estate businesses buying agricultural land from people, then illegally drawing up "projects" to sell, the situation of projects dividing plots of land for sale being left untouched, without infrastructure built on the land, including suspended projects, if there is no solution, will also cause the real estate market of the "locomotive" city to remain in a state of "kidnapping and abandoning the plate", without solving the root problems.

Source: https://daidoanket.vn/cam-phan-lo-ban-nen-tp-hcm-can-ung-pho-cac-bien-tuong-10293610.html