Week 30/2024 – Central Vietnam Real Estate News Summary
In this weekly or sometimes bi-weekly news flash – CVR: Central Vietnam Realty will provide a choice of articles from mainly Vietnamese media sources related to the real estate market in Vietnam.
We will be focusing on issues related to Da Nang and Hoi An, while also looking at national news and their possible impact on Central Vietnam’s property market.
You will find a summary, a link to the source as well as CVR’s take on the article.
We believe that local knowledge is the key to making the best possible decision and that’s what we offer to all our clients.
“CVR: Western Management – Local Knowledge”
1. Key Conditions For Real Estate Business Use Under The 2023 Law.
The 2023 Real Estate Business Law, effective August 1, 2024, outlines specific conditions for using residential properties and construction projects for business purposes. Article 14 of the law mandates that properties must have a certificate confirming ownership and land use rights, be free of ongoing disputes and mortgages for judgment enforcement, comply with regulations on prohibited transactions, and not be under transaction suspension. Additionally, properties must publicly disclose information as required by Article 6.
-
For residential properties and construction projects within real estate business projects, they must also adhere to conditions in Article 11, have documentation confirming the completion of acceptance procedures per construction laws, fulfill financial obligations related to the land such as fees and taxes, and possess a certificate of land use rights. These stringent requirements ensure legal and financial compliance, promoting transparency and stability in the real estate market.
Source: cafef.vn
2. Land Inventory Nationwide From August 1.
Starting from August 1st, a nationwide land inventory will be conducted to evaluate resource usage and improve efficiency. Prime Minister Phạm Minh Chính directed the Ministry of Natural Resources and Environment, along with related agencies and provincial authorities, to organize the 2024 land inventory. This includes assessing land areas, current management, usage, and specific sites like golf courses and airports. The inventory will run until December 31, 2024, aiming to assess land management, usage, and changes over the past five years, and identify issues and solutions. Results will be submitted by March 31, 2025, and finalized by June 30, 2025. The national inventory results will be published by September 30, 2025.
Source: vnexpress.net
3. How Will The Land Prices For Streets In Ho Chi Minh City Change From August 1?
The Ho Chi Minh City Department of Natural Resources and Environment is gathering public opinion on a draft decision to amend land prices as per Decision No. 02/2020/QĐ-UBND. The proposal suggests a significant increase in urban land prices. For instance, in District 1, prices on Dong Khoi, Nguyen Hue, and Le Loi streets are proposed at 810 million VND/m², a fivefold increase.
Neighboring streets like Ton Duc Thang see prices rising to 528 million VND/m² from 105.6 million VND/m², and Pham Hong Thai street to 418 million VND/m² from 83.6 million VND/m². In Thủ Đức, current prices range from 5 to 7 million VND/m², with some areas exceeding 20 million VND/m². Tran Nao street is proposed at 149 million VND/m², up from 13 to 22 million VND/m². Thao Dien Ward, District 2, may see prices increase from 7.8 million VND/m² to between 88 and 120 million VND/m². The new prices will be effective from August 1 to December 31, 2024, with further adjustments evaluated afterward.
From January 1, 2026, land prices will align with the 2024 Land Law. Special provisions are included for commercial, non-agricultural, and high-tech zone lands. The proposal impacts taxes, fees, and compensation related to land use.
Source: cafef.vn
4. How will the regulations for depositing a house on paper change from August 1?
The new regulations require a maximum deposit to buy a house to be built in the future, a maximum of 5% of the selling price, and a first payment of no more than 30% of the contract, including the deposit.
Real estate projects on paper are eligible for business when they have one of the following documents such as land allocation decision, certificate of land use rights, home ownership and residential land use rights.
The 2023 Vietnam Real Estate Business Law also regulates payment when buying, selling, or leasing future housing in Article 25. If the buyer pays according to schedule, the first payment must not exceed 30% of the contract. including deposit (old regulations did not include deposit).
Subsequent payments follow the construction progress, but must not exceed 70% of the contract value before handing over the house or construction project. The seller is an organization with foreign investment capital, not more than 50% of the contract value.
Thus, the new regulations have reduced the total advance payment to the lessee to a maximum of 50% of the contract value, instead of the current 70%. This helps reduce the financial pressure of tenants buying houses built in the future.
Source: vnexpress.net
5. Construction – Vietnam Real Estate: Land Inventory Nationwide Begins From August 1.
On July 25, key updates in Vietnam’s real estate and construction sectors included:
Vinhomes established four new real estate subsidiaries; nationwide land inventory begins on August 1; investment over 11.5 trillion VND for the Sơn La – Tây Trang expressway; and from August 1, property down payments are capped at 5% of the sale price.
Deputy Prime Minister Trần Hồng Hà initiated the 2024 land inventory, assessing land use and management across various sectors.
Bình Thuận province reported 33 real estate projects still not meeting transaction conditions. Vinhomes’ new subsidiaries focus on real estate, with significant capital contributions. The Sơn La – Tây Trang expressway project aims for completion by 2027.
Source: kinhtexaydung.petrotimes.vn
-
-
As always, CVR is at your service and happy to provide help anyways we can!
Contact Us today to find the real estate investment in Da Nang that is right for You.
-
