Submit to the National Assembly a pilot project to expand the type of land for commercial housing construction

In the draft resolution, the Government stated that the purpose of the proposal is to create a legal corridor to manage the land use rights market and the real estate market to develop stably, healthily, openly and transparently. At the same time, it creates favorable conditions for land users and investors to be proactive in implementing commercial housing projects and urban construction projects, minimizing the intervention of administrative agencies, limiting the occurrence of administrative procedures, reducing compliance costs, and limiting complaints from people when their land is recovered.

Regarding this issue, the Ho Chi Minh City Real Estate Association (HoREA) welcomes and expects that the draft pilot Resolution will be considered and approved by the 15th National Assembly at the 8th session (expected to open on October 21, 2024), which can remove obstacles, because the provisions at Point b, Clause 1 and Clause 6, Article 127 of the 2024 Land Law do not allow investors to negotiate on receiving land use rights or have land use rights for land other than residential land to implement commercial housing projects.

Thereby, it will create conditions for investors and enterprises to access land through agreements on receiving land use rights, or having land use rights for land other than residential land to implement commercial housing projects on the basis of voluntary agreements, "willing buyers and sellers" between people and enterprises, without disputes or lawsuits, in addition to methods of accessing land through auctioning land use rights or bidding to select investors for projects using land, helping to increase the supply of projects and commercial housing products to contribute to reducing housing prices.

It is known that in reality, most of the newly developed real estate projects, especially large-scale projects, are implemented on land that is not originally residential land, in many cases only agricultural land, while the current policy of Vietnam is to promote urbanization, rearrange urban areas and rural residential areas. Therefore, expanding the conditions for receiving land transfers to implement commercial housing projects, in order to promote the country's urbanization process, solve the need for residential land for the people and facilitate investors, limit the occurrence of administrative procedures, reduce costs... is necessary.