The Government proposes to pilot the expansion of land types for commercial housing construction.

This content is stated in the Government's Resolution dated May 28, proposing to develop a National Assembly Resolution on piloting the expansion of land types for commercial housing projects.

The Government plans to submit this draft Resolution to the National Assembly for consideration and approval at the ongoing 7th session.

According to the 2024 Land Law, investors who want to implement commercial housing projects are only allowed to receive the transfer of residential land use rights. In reality, no household or individual has a large enough residential land area, due to the maximum land allocation limit of 400 m2. Only enterprises and units that have the right to use residential land or other land are allowed to change the purpose of use to build commercial houses.

Many experts believe that this may benefit those who already have commercial land funds, creating conditions for large-scale urban and housing investors to dominate the market. On the other hand, the above regulation narrows the type of land for commercial housing projects, which may prolong the shortage of supply, making real estate business difficult.

To improve housing supply, the Ministry of Natural Resources and Environment proposed a pilot expansion of land types for commercial housing for 5 years, starting January 1, 2025.

According to the draft Resolution, three types of land for pilot projects include urban land and land in approved urban development planning areas. In addition, land of enterprises that have collected land use fees, land leases, or facilities that have to relocate due to environmental pollution, non-compliance with planning... are also included in the pilot.

Pilot projects account for a maximum of 30% of the total project area and housing development demand by 2030. The list of pilot projects is approved by the Provincial People's Committee, suitable to the local situation and approved by the People's Council.

At the meeting on May 27, Deputy Minister of Natural Resources and Environment Le Minh Ngan said that the pilot project must be consistent with land use, urban and construction planning. These projects must also be included in local development plans and have land use rights agreements approved.

Deputy Prime Minister Tran Hong Ha stated that the pilot project aims to resolve projects that have been stuck in management policies and laws on land and housing in the past. He requested the drafting agency to complete the draft Resolution to submit to the National Assembly, clearly defining the type of land, criteria for selecting pilot projects and the sequence of steps for investing in commercial housing projects.