Increasing enforcement of laws critical to tackling real estate market bottlenecks
It is critical to increase the enforcement of the laws on land, housing and real estate to tackle bottlenecks that are hindering the development of the property market.
It is critical to increase the enforcement of the laws on land, housing and real estate to tackle bottlenecks that are hindering the development of the property market.
Nguyễn Văn Đính, Deputy President of the Việt Nam Real Estate Association (VNREA), said at a dialogue between relevant ministries, experts and enterprises on Tuesday that the three laws have put into place detailed and clear regulations on the real estate sector, and are expected to improve the legal framework for the market to develop stably and sustainably.
It has been more than two months since the laws came into effect - not long enough to clearly see their effects - but the enforcement of these laws should be increased so that existing bottlenecks can be removed to facilitate the market's development, Đính said.
He said that localities are still confused about enforcement of the laws, so the rate of work being processed remains low.
As for land clearance regulations, compensation must be paid in full before the clearance can begin. Enterprises said that this is causing many projects to be delayed. There are also other problems related to bidding and land use fee calculations as well, according to Đính.
He added that the association expects new regulations under these laws to be disseminated together with detailed guidance for implementation, requiring cooperation from relevant ministries.
Phan Đức Hiếu, a member of the National Assembly's Economic Committee, said that it is necessary to create working groups to increase the enforcement of the three laws along with the Law on Investment, because each issue is under the jurisdiction of a different agency.
The working group will help relevant parties work together to remove difficulties for real estate enterprises and projects, Hiếu said.
Land prices
Land prices are a hot issue and are receiving significant market attention, economist Cấn Văn Lực said. One million out of 12 million comments regarding the Law on Land 2024 are related to the price of land.
A market-based land pricing mechanism is a notable addition to the Law on Land 2024. Previously, the land price framework was issued every five years, but this system was abolished and has been replaced by a framework that will be announced annually starting from the beginning of 2026.
However, determining land prices remains a problem due to the shortage of information about land. A reasonable methodology to ensure accurate information is needed, Lực said.
The national database on the real estate market is considered to be the best source of information. However, the database has not been completed, he said.
Lực noted that the market-based land pricing system might push up land use fees and real estate prices.
When the new framework is issued in 2026, the land prices in several localities are forecast to increase up to seven times, or even 10 times compared to the current levels, he said. — VNS
