Real estate market "counts down" before G hour

The Ministry of Justice has just announced the appraisal dossier of the draft Resolution of the National Assembly allowing the Housing Law 2023 and the Real Estate Business Law 2023 to take effect from July 1, 6 months earlier than the previous regulation. The Ministry of Natural Resources and Environment and relevant ministries and branches are also urgently preparing the necessary conditions to submit to the National Assembly to allow the Land Law to take effect from July 1, which is also 6 months earlier than the previous regulation.

What will happen to the real estate market when these three laws come into effect? ​​This is an issue that has received special attention from the public recently.

It can be said that these 3 laws play a very important role, deeply affecting the real estate market, not only in Hai Duong but also nationwide. This is the foundation that helps the market develop in a stable, healthy, open and transparent direction.

Brokers are not allowed to operate freely but must participate in real estate trading floors or businesses, must publicize real estate information before putting it into business, and record the actual transaction price in the contract. A series of regulations in the Law on Real Estate Business will increase control, helping the market become more orderly. At this time, hundreds, sometimes thousands of land brokers in Hai Duong will have to consider professionalism and method. From there, minimize the chaos as well as potential troublemakers. Trust and safety of real estate brokerage transactions are also promoted, helping to increase budget revenue, avoid tax losses from personal income of real estate brokers, especially with the regulation that all brokerage income must be paid by bank transfer.

The regulation that before handing over future housing, investors are only allowed to collect a maximum of 50% of the sales contract value instead of 70% as at present helps buyers reduce financial pressure and minimize risks when buying future housing.

Regarding the Housing Law, many new and important breakthrough contents are expected to contribute to perfecting institutions and policies, improving the efficiency of housing management and development. The Law promotes decentralization and delegation of power in conjunction with enhancing local responsibilities, promoting the supply of social housing. The Law also adds two new policies on developing workers' accommodation and housing for the armed forces. Workers working in industrial zones are not only allowed to buy and rent social housing as at present, but are also allowed to rent workers' accommodation.

To facilitate organizations, businesses, and individuals to participate in housing development, this law has amended and supplemented a number of regulations on the development of housing types such as commercial, public, resettlement, and individual.

With the Land Law, specific regulations on cases of direct land allocation without auction or bidding, as well as regulations on the remaining cases of land allocation and land lease through auction or public bidding, help the market develop in a public and transparent direction, avoiding "backyard" cases. From there, investors with sufficient financial capacity and implementation capacity can be selected, contributing to improving land efficiency, speeding up the legal progress of the project, and promoting supply to the market. In addition, it helps Hai Duong as well as other localities to specifically identify the land allocation mechanism to resolve problems in land handover for project implementation...

The question now is whether real estate prices will increase? With the provisions of the Land Law, removing the land price framework, building a land price list according to market prices, and converting land use purposes according to market prices will cause input costs of projects to increase sharply. On the other hand, this law promotes and almost completely allocates land through auctions and bidding, which will also increase land use fees for projects, and thus the price of finished housing products will also increase. Many experts believe that this ensures compensation rights for subjects whose land is subject to recovery, but may cause real estate prices to increase.

It is clear that the Government's recent policies on land and real estate market are to provide solutions to combat speculation, moving towards taxing real estate in the spirit of Resolution 18 and the Law on Property Tax. The speculative element in the real estate market will be minimized, towards elimination, leaving only real demand.

The amendment of the Land Law in line with related laws will form a clear and transparent legal corridor. On the other hand, the Law on Real Estate Business also tightens the business in the form of land division and sale. The Hai Duong market in particular and the whole country in general are now focusing on the investment segment of creating houses and constructions on land instead of land division and sale. The real estate supply will be more substantial, ensuring planning, landscape, and balancing supply and demand. Real estate owners will have to reduce expected profits to increase competitiveness.

When factors affecting prices are controlled, real estate prices in Hai Duong can increase but at an appropriate level, corresponding to the growth of the economy. Especially avoiding "bubbles" and price inflation like in the previous period.

Departments, branches, sectors, including businesses and people of Hai Duong need to be proactive in facing possible scenarios as soon as the 3 Laws: Land, Real Estate Business, and Housing come into effect.