Each week we post a news flash with notable articles related to the real estate market in Vietnam. We asked our team to pick the top stories from the past month and we’ve tallied the results. Check out the headlines that made big news in our office below. Have any of the articles we’ve shared impacted you? Is there any important news we’ve missed? We’d love to hear from you!

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Content

1. A series of new regulations related to real estate take effect from May 20
2. Response on transferring the Long-Term Lease Agreement (LTLA)
3. Granted pink book, will the condotel market “defrost” soon?
4. The recovery signal in the real estate market is increasingly clear

5. Da Nang converted four towers of the Times Square project from condotel to apartment
6. Binh Dinh attracts 30 new projects with a total investment capital of more than 10,000 billion VND
7. The demand for foreign tourism from Indian tourists has increased sharply
8. Da Nang – the most interesting city in Vietnam or “Asia’s New Singapore”?

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2. MAY 2023 CENTRAL VIETNAM REAL ESTATE NEWS SUMMARY

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• 1. A series of new regulations related to real estate take effect from May 20

From May 20, 2023, many new regulations related to land management and use will take effect.

1. Issuing red book online

For the case of carrying out administrative procedures for registration and issuance of Certificates in the electronic environment, the agency receiving and handling dossiers is responsible for carrying out the administrative procedures for land in accordance with the provisions of the law on land.

Land users and owners of assets attached to land are responsible for fulfilling their financial obligations as prescribed by law either directly or online through the payment function of the Public Service Portal.

2. Regulations on authority to issue red books

Specifically, the Land Registration Office shall issue red books to organizations, religious establishments, overseas Vietnamese implementing investment projects, and foreign organizations and individuals; foreign-invested enterprises.

The branch of the Land Registration Office or the Land Registration Office shall apply to households, individuals, residential communities, and overseas Vietnamese who are entitled to own houses associated with the use rights. residential land in Vietnam. In addition, the Branch of the Land Registration Office or the Land Registration Office may use their own seal to issue the Certificate and confirm changes to the issued Certificate.

3. Condotel is issued with a pink book

Specifically, for construction works used for tourist accommodation purposes according to the provisions of the law on tourism on commercial and service land, if the conditions are satisfied according to the provisions of the law on land. , the law on construction, the law on real estate business, and the ownership of construction works attached to the land shall be certified according to the purpose of commercial and service land use; land use term as prescribed in Clause 3, Article 126, Clause 1, Article 128 of the Land Law.

4. Conditions for participating in the land auction.

Decree 10/2023/ND-CP has added many important new regulations related to land management and use. Specifically, to add Article 17a to Decree No. 43/2014/ND-CP on auction of land use rights when the State allocates land with collection of land use levy or leases land.

5. Financial obligations when participating in land auctions.

According to Decree 10/2023/ND-CP, from the time of announcing the auction winning result, the deposit and interest (if any) will be converted into a deposit to secure the fulfillment of financial obligations of the auctioneer, and land users.

Source: cafef.vn

• 2. Response on transferring the Long-Term Lease Agreement (LTLA)

On October 5, 2022, the Ministry of Construction issued Document No. 4500/BXD-QLN replying to Document No. 3315/TCT-DNNCN dated September 8, 2022, of the General Department of Taxation on long-term real estate lease contracts (50 years) (LTLA).

After studying, the Ministry of Construction has the following comments:

Article 117 of the Law on Housing 2014 on forms of housing transactions stipulates: “Housing transactions include forms of sale, purchase, lease, lease-purchase of houses, and transfer of house purchase and sale contracts, donation, exchange, inheritance, mortgage, capital contribution, loan, stay and authorization to manage housing”. Accordingly, there is a form of house leasing and transfer of commercial house purchase and sale contracts, but there is no form of transfer of a house lease contract or a transfer of the right to rent a house.

Clause 1, Article 17 of the Law on Real Estate Business 2014 stipulates various types of real estate business contracts, including contracts for leasing houses and construction works. However, the Law on Real Estate Business 2014 only regulates the transfer of lease purchase contracts for houses and construction works (Article 36), there is no regulation on the transfer of lease contracts for houses and construction works and the transfer of the right to rent houses and construction works.

According to the provisions of the Law on Housing 2014 and the Law on Real Estate Business 2014, the house lease transaction, the house lease contract, and the house purchase and sale transaction, the house purchase and sale contract are two forms. different housing transactions, and two different types of real estate business contracts. Housing lease contracts signed between project investors and customers at the time the Law on Housing 2014 and the Law on Real Estate Business 2014 are taking effect, must comply with the provisions of the Laws.

Source: lawpro.com.vn

• 3. Granted pink book, will the condotel market “defrost” soon?

The issuance of pink books for condotels helps legal transparency, which is a positive signal, but not enough to revive the frozen resort real estate market, according to experts.

On May 20, condotel apartments (tourist apartments) were officially granted ownership certificates according to Decree No. 10 (the latest guidance of the Ministry of Natural Resources and Environment). Construction works used for tourist accommodation purposes if they fully satisfy the conditions of the Land Law; Build; All real estate businesses are certified with ownership of land-attached assets according to land use purposes and duration.

With the current developments, the pink book is a necessary but not sufficient condition to revive the condotel market as well as the frozen resort real estate market.

Source: vnexpress.net

• 4. The recovery signal in the real estate market is increasingly clear

The difficult period in the real estate market has led to a decline in selling prices and a situation where there are more sellers than buyers. The housing supply has also decreased due to slow legal approval processes. 

However, since the end of 2022, there have been many directives and solutions from the Government and local authorities to overcome the difficulties and support the market. Provinces such as Ho Chi Minh City, Hanoi, Dong Nai, and Binh Duong are resolving obstacles and restarting real estate projects. 

Policies regarding capital and legal matters have also been issued to stimulate the market. Positive signals are returning, and it is expected that the market will recover and develop.

Source: cafef.vn

• 5. Da Nang converted four towers of the Times Square project from condotel to apartment

The project was started in 2017, and so far the project has just completed the bare shell.

Four towers of the Da Nang Times Square project of Kim Long Nam Joint Stock Company have been converted to land use purposes from hotels and condotels to apartments.

Da Nang City People’s Committee allows investors to change the land use purpose for nearly 4,000m2 of commercial and service land of the above 4 land lots to use for urban land use to build apartments.

The land use term is until March 30, 2056.

Source: vietnamnet.vn

6. 6. Binh Dinh attracts 30 new projects with a total investment capital of more than 10,000 billion VND

Since the beginning of the year, Binh Dinh province has attracted 30 new projects with a total registered capital of more than 10,101 billion VND, reaching 50% of the whole-year plan in 2023.

Mr. Nguyen Bay, Director of Binh Dinh Investment Promotion Center, said that since the beginning of this year, the province has attracted 30 new projects with a total registered capital of more than 10,101 billion VND

According to Mr. Bay, there are adjustment projects that have approved the investment policy such as: the TMA Quy Nhon Creative Park Project of Tuong Minh Binh Dinh Software Solutions Co., Ltd (at 12 Science Avenue, Area 2). , Ghenh Rang ward, Quy Nhon city); Wood Processing Factory project of Minh Hieu Construction and TH Construction Company Limited (in Ngai Chanh village, Nhon Hau commune, An Nhon town); Adjustment of Thien Hung Zen Monastery construction investment project of Thien Hung My Tho Co., Ltd. (in Nhon Hoi EZ).

At the same time, this province also granted an investment registration certificate for the Anh Van Hoi Viet My Education Center project of Anh Van Hoi Viet My International Joint Stock Company (invested at 49-51 Le Loi Street, Quy Nhon City).

At the same time, actively accelerate the settlement of administrative procedures, further reform investment incentive policies; create all favorable conditions for investors to deploy projects in the locality, step by step building their own “brand”.

Along with that, the work of attracting investment will also be renewed by organizing promotions, calling for investment-oriented in key markets and introducing potentials and strengths of Nhon Hoi EZ and other sectors. The industrial park focuses on attracting urban projects, services, production of consumer goods, supporting industries, seaports, and housing for workers. 

Source: cafef.vn

7. 7. The demand for foreign tourism from Indian tourists has increased sharply

Indian travelers are searching for information on international travel more than travelers from any other market in the Asia Pacific

Sharing with CNBC, the Agoga executive said that the number of foreign travel searches from most Asia-Pacific countries increased by 30% – 60% compared to 2019, in India. , this increase is 225%.

Domestic economic growth has been the main driver behind India’s strong tourism recovery. Wealthy travelers are increasingly willing to spend big on overseas travel, whether for a short break in Asia or an extended stay in Europe.

Vietnam, Thailand, Singapore, and Indonesia are currently the top choices of Indian tourists.

Source: vtv.vn/kinh-te

8. 8. Da Nang – the most interesting city in Vietnam or “Asia’s New Singapore”?

In 2019, the reputable travel guide Lonely Planet introduced Da Nang as one of the most interesting cities in Vietnam, while many experts have high expectations for Da Nang to become the “new Singapore of Asia.” This city is gradually revealing itself as the most desirable place to visit, live, and invest in the country.

Located in a strategic central position in the Central region, the city of Da Nang serves as a bridge between modern and traditional cultures. On one side, there are cultural heritage sites such as the ancient capital of Hue, My Son Sanctuary, and Hoi An Ancient Town. 

Recognizing its existing advantages and considering tourism as a key economic sector in its overall development strategy, Da Nang has made efforts to invest in infrastructure and service quality to enhance its image as a top destination in the region. The city currently has around 1,280 tourism accommodation establishments with 45,889 rooms, catering to diverse segments from budget to high-end and super luxury. 

With diverse experiences and professional tourism management, it is no surprise that Da Nang is the shining star of Vietnam, and according to experts, it has affirmed its identity and successfully fulfilled its mission of becoming a worthy destination.  

Source:vietstock.vn

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