MAY 2024 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY

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Content

1. 1. Six Cases Where The State Will Revoke Land Use Certificates From 2025.
   2. Forecasting The Market To Recover, Restate Businesses Are Hunting For Land Funds.
   3. Real Estate Business Law Takes Effect Sooner: Home Buyers Will Get Great Benefit.
   4. About To Enter An Important Moment, The Real Estate Market Welcomed Nearly 1,400 New Businesses.
   5. Open Legal Framework, Remittance Flows Will Pour Strongly Into The Real Estate Market.
   6. The Law On Land, Housing, And Real Estate Business May Take Effect From August 1.

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1. MAY 2024 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY

1. Six Cases Where The State Will Revoke Land Use Certificates From 2025.

After the 2024 Land Law officially comes into effect on January 1, 2025, citizens need to be aware of six cases where the State will revoke land use certificates (red books):

Land is entirely expropriated by the State.
Citizens apply for a replacement of the land use certificate.
Land users register land changes and request a new land use certificate.
There are errors at the time of issuing the land use certificate, such as issuing without proper authority, to the wrong person, incorrect area, land not meeting conditions, misuse of land, incorrect usage period, or origin of land use.
The issued land use certificate is annulled by a court.
Auction, transfer of land use rights, or assets attached to land as per the court or enforcement agency’s request, but the person subject to enforcement does not return the issued land use certificate.
If the owner or land user does not submit the land use certificate when it is revoked, the competent authority will cancel the issued certificate.

Source: cafef.vn

2. Forecasting The Market To Recover, Restate Businesses Are Hunting For Land Funds.

Real estate leaders are optimistic about the market’s recovery after a prolonged slowdown and aim to seek land in the near future.

At the 2024 annual general meeting, Tan Bo Quan, Chairman of BCG Land, noted the severe challenges the market has faced since 2022 but highlighted a slight recovery in Q4 2023 due to new government policies and improved access to credit. Khải Hoàn Land and Đất Xanh Group also observed positive signs, with increased transactions and customer interest.

Vinhomes expects a gradual recovery, with limited supply in major cities. Some leaders, like those from Nam Long, remain cautious, citing supply-demand imbalances and financial risks.

Despite challenges, there are opportunities in affordable housing and industrial real estate, driven by foreign investment and infrastructural development.
Companies are prioritizing legally clear land to prepare for new projects, focusing on strategic locations and long-term growth.

Source: vietstock.vn

1. 3. Real Estate Business Law Takes Effect Sooner: Home Buyers Will Get Great Benefit.
   

1. The Real Estate Business Law 2023, along with the Housing Law 2023, aims to protect home buyers’ interests and provide them with more housing options. Passed by the National Assembly in November 2023, these laws will take effect from January 1, 2025, though the government has proposed advancing this to July 1, 2024.

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   The Housing Law 2023 introduces significant reforms to improve housing management and development efficiency. Meanwhile, the Real Estate Business Law 2023 emphasizes decentralization, administrative reform, and market control, enhancing unified management from central to local levels.

    

   These laws institutionalize the Party’s policies and guidelines, promoting strict real estate market management and fostering a healthy, sustainable market. According to Ms. Do Thu Hang from Savills Hanoi, the Real Estate Business Law 2023 safeguards buyers by ensuring developers fulfill financial and documentation obligations before selling properties. Buyers also have the option to forgo a credit institution guarantee, adding flexibility and reducing costs, though they should weigh the risks and benefits.

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Source: cafebiz.vn

4. About To Enter An Important Moment, The Real Estate Market Welcomed Nearly 1,400 New Businesses.

The real estate market is showing many positive signs as the wave of brokers, newly established businesses, the number of transactions, especially FDI capital pouring into real estate, have increased significantly recently. With this basis, the real estate market is expecting a breakthrough when the Land Law 2024 will take effect soon on July 1.

According to data from the General Statistics Office, in the first 4 months of this year, the whole country had 1,376 newly registered real estate enterprises, equal to 98.7% compared to the same period in 2023. In addition, there were 1,302 enterprises. return to operations. The sharp increase in the number of newly registered businesses and especially those returning to operation shows that the real estate market is showing signs of positive recovery.

Another positive sign is that the amount of foreign investment capital poured into this field has rebounded in the first months of 2024.
According to a report from the General Statistics Office, in the first 4 months of this year, registered capital in the real estate business ranked second with 1.6 billion USD. This number is 4 times higher than the same period in 2023.

Another very important driving force that promises to bring a “new breeze” to the real estate market shortly is the positive impact of the revised Land Law that will take effect from July 1. New content, if applied soon, will help make the market more transparent and clear and reduce overlap between laws.

In particular, real estate businesses expect that new regulations will soon cut cumbersome legal procedures and remove obstacles for many real estate projects that are “stuck” today.

Source: cafeland.vn

5. Open Legal Framework, Remittance Flows Will Pour Strongly Into The Real Estate Market.

In 2023, Vietnam saw a notable surge in remittances, reaching $16 billion, up by 32% from the previous year. The Land Law of 2024 expanded property ownership rights for Vietnamese expatriates, drawing increased remittances and becoming a significant revenue source for the country.

While the new law may initially impact real estate prices, it’s expected to foster long-term growth by encouraging direct investment from expatriates. The law addresses previous hurdles in investment processes, offering more favorable conditions and reducing risks. This is especially appealing to expatriates with accumulated assets planning to return to Vietnam.

The Land Law’s provisions for expatriates owning real estate hold considerable potential for Vietnam’s real estate market, attracting investment capital and driving demand.

Source: cafef.vn

6. The Law On Land, Housing, And Real Estate Business May Take Effect From August 1.

The three revised Land, Housing and Real Estate Business laws are expected to take effect from August 1, instead of July as planned in the Government’s Resolution.

Currently, most localities and businesses hope that new laws with important impacts on the real estate market will soon be brought to life. Vice Chairman of Ho Chi Minh City Bui Xuan Cuong said that the revised Land Law had a great impact on the city’s socio-economic life. In the first months of 2024, the number of procedures related to real estate is more than 67,000, an increase of nearly 19,000 documents over the same period.

According to the assessment of the Ministry of Construction, the revised Real Estate Business Law has many new contents, which will tighten the situation of land division and sale in localities.

Source: vnexpress.net

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