Worried about land shortage, HoREA proposes to expand land types for housing

Regarding the draft revised Land Law, on January 14, the Ho Chi Minh City Real Estate Association (HoREA) sent a document to the National Assembly Standing Committee, the National Assembly Economic Committee, the National Assembly Law Committee and the Ministry of Natural Resources and Environment.

HoREA worries about lack of land supply for commercial housing

In particular, HoREA expressed its agreement with the Government's report proposing to continue expanding the types of land for commercial housing projects, through the form of agreement on receiving land use rights for residential land or residential land and other land in Article 127 of the draft Land Law.

Specifically, HoREA proposed to continue expanding the types of land for commercial housing projects "through the form of agreement on receiving land use rights for residential land or residential land and other land", and proposed to add regulations on handling transitional cases where economic organizations currently have land use rights for land other than residential land, including non-agricultural land that is not residential land or agricultural land to implement investment projects, including commercial housing projects.

In the case of using land to implement commercial housing projects, only the right to use residential land can be agreed upon according to the draft law. HoREA believes that the positive aspect is that it will immediately end the situation where some private investors "buy up and acquire" land for profit or illegally occupy and enjoy differential land rent.

However, this regulation also has a limitation that may lead to the consequence that in the next 5-7 years, the commercial housing real estate market will lack land supply, leading to a lack of commercial housing supply.

In addition, HoREA also proposed to supplement regulations on handling transitional cases where economic organizations have the right to use land other than residential land, including non-agricultural land that is not residential land or agricultural land to carry out investment projects, including commercial housing projects according to the provisions of the 2013 Land Law.

According to HoREA, the addition of regulations on handling transitional cases where economic organizations have the right to use land other than residential land, including non-agricultural land that is not residential land or agricultural land to carry out investment projects, including investment projects to build urban areas and commercial housing, is very necessary.

At the same time, it is necessary to assign responsibility to localities to strictly implement the work of land valuation accurately to collect correctly, fully and promptly land use fees and land rents into the state budget, absolutely not allowing loss of state budget revenue and loss of public assets, which are land resources.

The Standing Committee of the National Assembly wants to keep the old regulations.

The draft Land Law (amended) will be submitted to the National Assembly for consideration and approval at the 5th extraordinary session, which will open tomorrow (January 15).

At the 29th session of the National Assembly Standing Committee giving opinions on this bill, Chairman of the Economic Committee Vu Hong Thanh mentioned the content of land types for implementing commercial housing projects through agreements on receiving land use rights or having land use rights (Articles 122 and 127 of the draft law).

Accordingly, the Government's report continues to propose expanding the types of land for commercial housing projects through the form of agreements on receiving the right to use residential land or residential land and other land.

However, implementing the conclusion of the National Assembly Standing Committee, the draft law remains as prescribed in the 2014 Housing Law, amended and supplemented according to the newly amended law passed in 2023.

Specifically, commercial housing projects can only be implemented through agreements on receiving land use rights for residential land.