The Housing Law and the Real Estate Business Law stipulate 13 new points that are beneficial to investors.

The revised Housing Law has 7 new points

Regarding the national housing development strategy, the Housing Law has stipulated the provincial housing development program and plan, including removing the regulation on annual housing development plans; providing stricter regulations on adjusting housing development programs and plans; removing the regulation on consulting the Ministry of Construction when carrying out procedures for construction and approval of housing development programs and plans to facilitate the implementation of housing development programs and plans.

Regarding housing development, the Housing Law has amended and supplemented regulations on the development of commercial housing, public housing, resettlement housing, and individual housing, creating favorable conditions for people and businesses to develop housing. Some of the regulations include: Supplementing regulations on the stages of housing construction investment projects to clarify the investment process for housing projects; supplementing regulations on investors of commercial housing and resettlement housing projects having the right to use land or agreeing to transfer land use rights to implement commercial housing construction projects according to the provisions of the Land Law, not through auctions or bidding. The Housing Law also tightens the development of individual housing for business by households and individuals to ensure the safety and lives of people, clearly defining the conditions for fire prevention and fighting, designing apartments for sale, for rent, for purchase, etc.

Regarding the renovation and reconstruction of apartment buildings, the Housing Law stipulates exemption of land use fees and land rent for the entire land area of ​​the project and does not require procedures for determining land prices, calculating land use fees and land rents exempted according to the provisions of the law on land; approval of investment policies for apartment building renovation and reconstruction projects is carried out according to the provisions of the Housing Law, not according to the provisions of the Investment Law, in order to create favorable conditions for investors to participate in investing in and renovating apartment buildings. The Housing Law clearly stipulates the rights and responsibilities of local authorities, investors, and apartment building owners in relocating owners and users of apartment buildings, forcibly relocating and demolishing apartment buildings; the arrangement of funds for relocation, forcibly relocating and demolishing apartment buildings, etc.

Notably, regarding the social housing development policy, the Housing Law has resolved many shortcomings for real estate businesses and localities in recent times. Specifically, regarding the allocation of land funds for social housing development, the 2023 Housing Law stipulates that in special, type I, type II, and type III urban areas, based on the Government's regulations, the Provincial People's Committee decides that the investor of a commercial housing construction investment project must reserve a part of the residential land area in the project that has invested in building a technical infrastructure system to build social housing or arrange the social housing land fund that has invested in building a technical infrastructure system in a location other than the scope of the commercial housing construction investment project in that urban area or pay money equivalent to the value of the land fund that has invested in building a technical infrastructure system to build social housing. Thus, the social housing obligations of investors of commercial housing projects are implemented more flexibly than the 2014 Housing Law. In addition, investors of social housing projects are entitled to a maximum profit of 10% for the social housing construction area, and are entitled to a maximum incentive of 20% of the total residential land area (or 20% of the total construction floor area of ​​the project) for business construction...

The Housing Law completes policies related to capital mobilization for housing development.

The Housing Law has added regulations on the conversion of housing functions to resolve housing funds that have been invested in and built with state budget capital but not put into use to ensure optimization of housing management and use, avoiding waste of resources in converting from resettlement housing to social housing; converting from public housing or social housing when no longer needed to resettlement housing; converting old state-owned housing to public housing or social housing for rent.

Finally, the Housing Law amends and supplements a number of regulations on common ownership, private ownership, and exploitation of revenue from the common use of apartment buildings, in order to resolve disputes and complaints in the management and use of apartment buildings that have occurred in practice in recent times.

6 new points in the revised Law on Real Estate Business

The Law on Real Estate Business has resolved the issue of overlapping scope of regulation of the Law with the Investment Law and the Land Law in recent times, especially overcoming legal shortcomings in regulations on types of real estate, real estate projects put into business or land use rights with technical infrastructure in real estate projects. The Law ensures the disclosure of information on real estate and real estate projects before putting them into business; at the same time, the Law has completed regulations on conditions to improve the capacity of individuals, real estate businesses, and the real estate market, contributing to a healthy market; overcoming shortcomings in the business of housing, available construction works and those formed in the future in recent times, contributing to unblocking the real estate market, protecting buyers and hire-purchasers.

Regarding the regulation that real estate project investors are only allowed to collect deposits of no more than 5% of the selling price, lease-purchase price of houses, construction works, and construction floor area in construction works when the houses and construction works have met all the conditions for putting into business according to regulations, the Law on Real Estate Business has amended and supplemented regulations on guarantees in the sale and lease-purchase of future houses to create initiative for investors and home buyers in housing transactions.

Regarding the transfer of land use rights with technical infrastructure in real estate projects to individuals for self-construction of houses and the transfer, lease, and sublease of land use rights with technical infrastructure in real estate projects to organizations, the Law on Real Estate Business has resolved problems related to the law on land, real estate business, and urban development, contributing to unblocking the real estate market operating on the basis of a clear, specific, and transparent legal corridor.

Regarding the issue of transferring real estate projects, the Law on Real Estate Business has removed the regulation requiring a Certificate of Land Use Rights for the project or part of the real estate project to be transferred; supplemented the regulation that the transferring investor has a decision on land allocation, land lease, or permission to change the land use purpose to implement the project from a competent State agency; amended and supplemented the regulation that in the case where the transferee of the entire or part of the project is an economic organization with foreign investment capital, after having a decision permitting the transfer from a competent State agency and the parties have signed a transfer contract, the implementation of land procedures shall comply with the provisions of the Land Law.

The Law on Real Estate Business has also added a provision that individuals practicing real estate brokerage must meet the conditions for practicing in a real estate trading floor service business or a real estate brokerage service business, in order to make real estate brokerage and transaction activities transparent and professional, and ensure that investors and real estate businesses have a clear and consistent legal basis to conduct smooth real estate transactions.

In addition, regarding the information system and database on housing and real estate market, the Law on Real Estate Business has added new regulations to ensure the legality of the construction and management of the information system and database on housing and real estate market; ensuring connection and data sharing with the national database on land, databases of ministries, branches, localities and relevant agencies, in order to publicize and make the market transparent, overcome legal shortcomings in recent times and improve the effectiveness of State management of the real estate market.