Legal Transparency- Driving Real Estate Market Development

The Land Law 2024, Real Estate Business Law 2023, and Housing Law 2023 officially came into effect on August 1, 2024, marking a significant step forward in improving the legal framework surrounding land and real estate in Vietnam. These changes are expected to resolve existing legal bottlenecks, unlock land resources, filter investors, and promote transparency and healthy growth in the real estate market.

New Provisions in the Real Estate Business Law 2023

A notable change in the Real Estate Business Law 2023 is Article 6, which mandates the disclosure of all real estate projects available for commercial transactions. Developers are required to publicly disclose relevant information about real estate and real estate projects on the housing and real estate market information system, as well as on their company websites. This move will enhance market transparency, curb speculation, and reduce risks in real estate transactions.

Economist Dr. Nguyen Minh Phong highlighted that when real estate data and transaction information, such as buying and selling or transferring properties, are made legally transparent, the phenomenon of "land fever" will no longer occur, thus stabilizing the market and reducing transaction risks.

Addressing Irregularities in Land Auctions

The disclosure of local price ceilings and floors is also critical to controlling price manipulation. Dr. Nguyen Minh Phong suggested that to mitigate the downside of price surges, it is essential to make planning transparent and ensure that state compensation projects are priced according to the market. This will prevent market confusion caused by intermediaries or incomplete information.

Resolving Stalled and Idle Projects

Another pressing issue in the real estate market is the prevalence of stalled or idle urban development projects. Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, noted that such occurrences will decrease with the new laws in place. Projects that do not adhere to their commitments will be subject to land reclamation, ensuring that projects proceed as planned.

Advantages for Legally Potential Projects

Mr. Do Bao Ngoc, Deputy General Director of Construction Securities, stated that the new legal regulations will benefit projects with potential that are still entangled in legal procedures. Once these legal barriers are resolved, companies will be able to quickly bring their products to market, increasing supply and meeting financial needs.

Collaboration Between Management Authorities and Businesses

Bui Xuan Dung, Deputy Minister of Construction, emphasized that the new legal documents and guiding regulations will address overlaps in the laws governing real estate investment and business. The new regulations simplify the procedures for project implementation and reduce the time required for project launches.

Positive Impact on the Real Estate Market

The Land Law 2024, Real Estate Business Law 2023, and Housing Law 2023 are essential tools to promote stable and healthy development in the real estate market. These legal changes will provide a transparent legal framework, protect the interests of the public and investors, and foster the development of high-quality projects.

However, for these legal provisions to truly be effective, close cooperation is required between government authorities, businesses, and the public. Only with joint efforts can the real estate market achieve sustainable and transparent growth.