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PROPERTY

New lease of life he recent amendments to the Land
Law, Law on Housing, and Law on
T Real Estate Business will have a pos-
itive impact on Vietnam’s real estate market.
Stakeholders share their thoughts with VET’s Phan Duong In particular, the Land Law 2024 aims to
facilitate land access for economic entities
on how Vietnam’s real estate sector stands on the brink of
and investors, invigorating the agricultural
a new era from recent legislative changes. real estate segment. Notably, it introduces
fresh provisions concerning land leasing
via auctions, enhancing land use rights. In
regard to leasing payments, the law specifies
annual payments, restricting lump-sum
payments for the entire term.
The Law on Real Estate Business,
meanwhile, aims to streamline regulations,
foster market growth, and ensure sustain-
ability. It limits home purchase deposits
to 5 per cent of the price and reduces
upfront payments for future rentals by up
to 50 per cent. Small-scale real estate busi-
nesses are exempt from certain corporate
requirements, while brokerage firms only
need one certified broker. The law man-
dates brokers to operate on property trading
floors, ensuring transparency in transac-
tions. Developers must disclose project
details pre-commercialization, and con-
tracts must accurately reflect prices. Stricter
regulations apply to land subdivision for
sale, particularly for Type 3 urban areas.
And the Law on Housing enhances
housing accessibility, particularly for citizens,
many projects facing delays in sales and streamlines property purchases for
launches and from unresolved legal issues. overseas Vietnamese and foreigners. It
The enactment of upcoming laws in emphasizes the development of social hous-
the months to come will position the real ing segments and broadens eligibility criteria
estate sector to swiftly transition back to for purchasing or renting such properties.
a “renewed” normalcy, characterized by Furthermore, it imposes stricter regulations
progressively transparent and precise infor- on housing management and development,
mation accessible to all stakeholders. including fire safety requirements for mini
Mr. Nguyen Van Dinh apartments, eligibility for “red books”, usage
Chairman, Vietnam Real Supply will continue rising to the end of terms for apartment buildings, and com-
Estate Brokers Association the year, while demand for residential
properties will remain high, supported by pulsory eviction for deteriorating buildings.
ietnam’s real estate market success- economic growth and urbanization. Invest- Despite the legislative reforms, policy
fully navigated through its toughest ment demand will also grow, focusing on delays are inevitable. There are also numerous
V phase in the opening months of satellite urban areas in Hanoi, Ho Chi challenges in implementation. Amendments
2024 and is now exhibiting positive trends Minh City, and key cities like Da Nang. to the Land Law were particularly difficult
in both supply and demand across various The volume of entities prepared to re- for the 15th National Assembly, with land
sectors, at both the micro and macro levels, engage in the sector will surge, ushering valuations and compensation posing signif-
presenting promising opportunities in the in a plethora of new projects in the market. icant challenges. Clarity is needed on market
year ahead. Moreover, there will be an increase in real principles for land valuations. There is cur-
However, market recovery still exhibits estate trading platforms and agents return- rently a widespread desire to avoid land val-
some divergence between different seg- ing to active operations, alongside a rise uations due to legal risks. Enhancing legal
ments. The apartment sector remains at in customers and investors seeking oppor- dissemination and enforcement capacity is
the forefront in terms of transaction vol- tunities in residential real estate. crucial for the effective implementation of
umes, representing nearly 60 per cent of In retail real estate, there will be an new regulations at the local level. %
the total in the first quarter of 2024. There influx of quality new rental spaces, while
is also considerable ongoing demand for the industrial real estate segment is
investment in all segments, including lux- expected to maintain its positive growth
ury, high-end, affordable, and social hous- trajectory. Though the recovery of the
ing. Industrial real estate continues to tourism and resort real estate segment
maintain its growth momentum, while may face short-term challenges, there are
commercial real estate is showing signs of optimistic signs, particularly for products
improvement with rising leasing demand. like condotels and high-rise apartments
Nevertheless, challenges persist in the linked to tourism resorts in traditional Mr. Nguyen Quang Tuyen
tourism and resort real estate sector, with and key tourist destinations. % Vice Chairman, Hanoi University Law Council

44 Vietnam Economic Times May 15, 2024 en.vneconomy.vn