2024 Land Law to draw real estate investment, increase social housing supply
The 2024 Land Law coming into effect will have a significant impact, with the two groups benefiting the most being overseas Vietnamese and resettled individuals who are compensated.
Expediting the enforcement of the 2024 Land Law would stimulate the supply of social housing and encourage enterprises to be more assertive in participating in the development of this segment, experts predict.
The law is due to take effect on January 1, 2025. However, the Prime Minister Phạm Minh Chính has instructed ministries and agencies to complete assigned tasks to propose the National Assembly for permission to enforce it from July 1 this year.
According to experts, the law coming into effect will have a significant impact, with the two groups benefiting the most being overseas Vietnamese and resettled individuals who are compensated. The supply of social housing is also expected to shoot up due to preferential policies and new support packages.
Attracting remittances
According to Associate Professor Dr. Nguyễn Lư Phương, from Hồ Chí Minh City University of Natural Resources and Environment, foreigners or overseas Vietnamese were previously not eligible to purchase houses attached to land use rights in Việt Nam. However, the 2024 Land Law stipulates that Vietnamese expatriates are allowed to enter Việt Nam, purchase or lease-purchase houses attached to land use rights and receive land use rights in housing development projects.
With this provision, Troy Griffiths, Deputy Managing Director of Savills Vietnam, expressed his belief that the new land law will bring about more investment opportunities for the real estate buyer group of overseas Vietnamese. This change also creates significant potential for the market thanks to direct investment capital from the group.
In addition, the new law stipulates that resettlement areas must complete conditions regarding technical and social infrastructure, while ensuring the livelihoods of residents.
Improving social housing supply
Experts believe that from the time of adoption until July 1, there is enough time to bring the law's provisions to people, businesses and state agencies. If the new enforcement date is passed, it will help the supply of social housing "boom" in the coming time, particularly in major cities like Hà Nội and HCM City.
According to Lê Bảo Long, the strategy director of the site Batdongsan.com.vn, the supply of social housing is expected to improve with preferential policies, new support packages, and regulations stipulating that provincial people's committees must allocate sufficient land funds for social housing.
The 2024 Land Law and the 2023 Housing Law add more forms of social housing development, including foreign capital, foreign organisations and union financial resources for workers renting social housing.
Long forecasts that the quality of real estate projects will also improve due to stricter regulations on handover standards and progress.
With these adjustments, in Resolution No. 01/NQ-CP dated January 5, 2024 regarding key solutions for implementing the socioeconomic development plan and state budget estimate this year, the Prime Minister set a target of completing about 130,000 units of social housing.
Currently, the Ministry of Construction, the Ministry of Natural Resources and Environment, and the Ministry of Finance are focusing on studying draft decrees guiding the 2023 Housing Law and the 2023 Real Estate Business Law, the 2024 Land Law, and the 2024 Law on Credit Institutions. They will then submit to the Government for consideration and issuance in May. The work serves as a basis for the Government to seek the National Assembly’s permission for the 2024 Land Law to take effect earlier. — VNS
