Ho Chi Minh CityHoREA has just proposed to the city to remove legal difficulties for 64 housing projects that have been stuck with records for 5-10 years, negatively affecting the real estate market.
The Ho Chi Minh City Real Estate Association (HoREA) said that out of the 57 businesses that are the investors of 64 projects distributed throughout the East, South and West areas of Saigon, there were legal “suspensions” to submit petitions for help. Famous giants such as: Novaland, Nam Long, Phu Long, Quoc Cuong Gia Lai, Him Lam… In this list of 64 projects, there are 3 groups that need the city to speed up the process of resolving congestion.
First group are social housing projects, ranked at the level that needs to be resolved most urgently. For many years, businesses have negotiated for site clearance to have a clean land fund and self-financed capital (including loans with commercial interest rates) to invest in construction of social housing projects, but have been subject to legal obstacles. This list is quite long, including social housing projects for sale and for rent by companies: Le Thanh, Nam Long, Thu Thiem Investment, Thien Phat, Phu Cuong, Van Thai, Saigonres…
Only the social housing projects of Le Thanh Company, Thao Dien Real Estate and Thien Phat Company, if the legal problems are removed soon, and construction starts in the first 6 months of this year, it is estimated that they will help the success of the project. The city has an additional 5,209 housing funds for employees in the period 2024-2025. According to HoREA, this project group needs to be prioritized to encourage development to provide more supply of social housing for sale and rent that is lacking in Ho Chi Minh City.
Second group are real estate and commercial housing projects that are not subject to legal review. This is a group of projects that are not subject to inspection, inspection and investigation regulations, and the city needs to create conditions for investors to continue implementing the project. The most urgent is completing the procedures for paying land use fees and completing the procedures for granting certificates to home buyers.
The association proposes to the People’s Committee of Ho Chi Minh City and other departments to completely settle the procedures for investment approval, land use fee calculation, approval of 1/500 planning… receive land use rights, house ownership and land-attached assets (pink book). Because, according to HoREA, currently it is estimated that there are more than 20,000 apartments in apartment projects in the city that have not been issued with pink books of this group.
The third group are housing projects that are subject to review, inspection – inspection but have not yet reached a final conclusion. In many cases, these projects have been approved for investment, or implemented many years ago, or have completed construction investment and homebuyers have settled down, the city needs to handle according to regulations. prioritizing the interests of the people.
Le Hoang Chau, Chairman of HoREA, said that the city should soon have a final conclusion for real estate and commercial housing projects that are subject to legal review, supplement or inspection of payment. land use, determine financial obligations. The principle of handling is not to lose state budget revenue, avoid loss of public property, and at the same time create stable and settled conditions for homebuyers.
According to Mr. Chau, besides some errors of investors, there are many other reasons leading to 64 real estate projects having legal problems spanning the past decade.
The first is that a number of articles in the 2014 Housing Law are not consistent with the provisions of the 2013 Land Law, which has led to a situation in which a series of projects are stuck at the stage of investor recognition. Specifically, with the group of projects with interlaced land use rights other than residential land, agricultural land, currently stuck at the stage of not being recognized as an investor. Most of the applications that are blocked fall on very large-scale housing projects.
Next, due to the recent legal review, inspection and even investigation of a series of projects by the city, investment procedures were delayed. Projects that fall into this state of review often have to stop implementation, or stop the procedure for issuing red books for investors and home buyers.
The third reason, according to Mr. Chau, is that in the real estate law enforcement stage in recent years, there has been a situation where some officials are afraid of responsibility, “afraid of taking risks in performing their official duties”. This mentality leads to civil servants showing signs of pushing, transferring documents around or not stating their opinions when submitting real estate and commercial housing project documents.
By the end of March, the number of legal entanglements was still at 64 projects that negatively impacted the real estate market in Ho Chi Minh City, causing the housing supply to stagnate, plummeting while the selling price houses increased continuously for the past 2-3 years. Following many projects that could not be completed, the issuance of pink books caused frustration for tens of thousands of households over the past decade.
In order to stabilize the real estate market in the next 12-24 months, according to HoREA Chairman, the city needs to speed up the resolution of legal problems for these 64 projects in order to speed up construction before the first 6 months of the year. 2022. “This is also a way to help increase housing resources to serve the huge demand of the market, reduce the monopoly power to increase selling prices and increase revenue for the state budget from enterprises paying land use fees,” said Mr. Chau. identify.