Experts proposed several ideas on how to amend the Housing Law and Real Estate Business Law at a session held yesterday by the Ministry of Construction in HCM City.— Illustrative image/Photo ktdt

HCM CITY (VNS)— Experts proposed several ideas on how to amend the Housing Law and Real Estate Business Law at a session held yesterday by the Ministry of Construction in HCM City.

Representatives from the construction and property sectors offered several suggestions on all aspects of the two laws.

Most of the participants agreed that overlapping provisions in the laws, as well as in the Law on Land and Investment Law, should be avoided.

Speaking at the meeting, Le Hoang Chau, chairman of the HCM City Real Estate Association, said the period to sell a house should be limited.

"The Government should permit that developers sell a house within a 15-20 year period," he said.

Provoked

"This could help lower housing prices in Viet Nam," he said, adding that "prices would be 50-75 per cent less than they are now."

Chau also mentioned that such a time-period limit had been applied in many other countries.

Another issue that provoked heated discussion was the time period for mobilising capital for projects.

Under the current law, investors are allowed to contribute money only after the foundation of a building project is completed.

But it takes a long time to complete the foundation because "the design could change due to many problems," according to a representative from Him Lam Group.

"Companies that obey the law often need huge capital. Real estate developers often run out of money when the foundation construction is finished," he added.

Another matter addressed at the meeting dealt with ownership of real estate by foreigners who live in Viet Nam.

Many of the attendees said that such regulations must be more open and flexible.

"Regulations permitting foreigners to own an apartment must be looser. This would help stimulate the market," said Nguyen Van Danh, deputy head of HCM City's Department of Construction.

The approval of the Housing Law and Real Estate Business Law in 2005 and 2006, respectively, played an important role in the real estate market.

For the first time in Viet Nam, laws were created to oversee a number of related matters, including land and house rentals and social-housing management, according to Nguyen Tran Nam, Deputy Minister of Construction.

Since that time, the two laws' shortcomings have been revealed, he said, adding that it was now time to amend the laws and consider ideas from opinion-makers and the industries involved. —VNS