HCMC real estate: difficult spots

Five-year project development of real estate market in Ho Chi Minh City

HCMC Real Estate Association (HoREA) has recently submitted a development plan to the People’s Committee of Ho Chi Minh City. This is a complete plan to develop the real estate market in the city in the period 2017-2020.

Among the solutions are given to develop the city’s real estate market in the period 2017-2020. HoREA has proposed some solutions to address market issues of great interest to the city.

The real estate market in HCMC will have a five-year development orientation with a vision to 2020

Points of “jams” need to solve the real estate market

The first objection is that land use fees are a burden and a precursor to the “begging” mechanism.

To address this bottleneck and assist businesses to grow. The City People’s Committee has allowed the enterprise to pay the land use fee of the project immediately after the land price is determined by the Department of Natural Resources and Environment.

Since then, the investor will continue to apply for construction permits. This can reduce the waiting time for 6 months waiting for land valuation procedures as previously applied.

Secondly, the problem of land clearance for too long leads to many projects falling into incomplete compensation, which can not be implemented. The capital of the business is buried for a long time without exit.

Next is the problem about the transfer of real estate projects. It is required that the investor clear the site and must have a certificate of land use right to receive the transfer. This does not create favorable conditions for new investors to replace old investors to restart projects that have been suspended for a long time.

New investors want to re-deploy the project behind schedule, it is necessary to clear the ground and have a certificate of land use right

In addition, the problem of credit policy is not reasonable and not create medium-term, long-term capital dedicated to the real estate market.

At present, the nature of operation in the HCM City market is medium and long term. It should be relatively phase-out in this regard. Lending rates are still high and are likely to increase in 2018. So far, no concessional credit has been allocated to implement the government’s resolution 133 on social housing.

The last bottleneck is the complicated, prolonged, hidden administrative procedure. And harassment during the approval process in the implementation of investment projects that use the land. Besides pointing out the bottlenecks of the market. HoREA also proposed a “5-house chain” coordination mechanism, including: project developers, contractors, suppliers, equipment, banks – … in the current context is very necessary for the market.

“If the above subjects together shake hands and co-ordinate implementation will create power, efficiency. Contribute to promote the city’s real estate market to develop transparent, healthy and sustainable. In that, state agencies and government officials must be honest, constructive, acting and complying with businesses, “HoREA emphasized.

Policies need to be approved in the People’s Council meetings

HoREA argues that under current law, all projects use land. All urban and housing development projects must be included in annual land use planning and plans, construction planning, urban development, housing development projects in the city as well as localities. .

Therefore, to encourage the market to grow stronger. The state needs to approve the land fund to flow into the project more. At the same time, it is necessary to approve the policy to invest more real estate projects.

Conversely, if the market shows a bubble, it is necessary to apply policies that restrict the supply of land to the market. At the same time, it is also advisable to restrict the approval of cases where you want to invest in real estate.

Because land is a finite resource, it is becoming increasingly narrow. There should be policies to use effectively and economically. So, the city has enough land for the future development and future generations.

The state should have appropriate regulatory policies for the market so that real estate can flourish and sustainability

According to Le Hoang Chau, HoREA Chairman, the authority to approve the annual land use plan is being held by the People’s Committee. However, there are only two sessions per year. Therefore, there should be a flexible and flexible coordination mechanism between Permanent People’s Council and City People’s Committee, departments, branches, localities … To meet the investment demand, Develop and supervise the use of land.

HoREA recommends that this is to delegate authority to the Standing Committee of the People’s Council for approval of land use planning (supplemental) between two sessions of the People’s Council. This will ensure that the demand for investment in real estate development is met.

“The purpose of these measures is with the desire to build and develop the real estate market poetry transparent, healthy and sustainable. So, if you work seriously, apply thoroughly and flexibly, then surely the market will develop well, “Mr.Chau said.

You are reading the article HCMC real estate: difficult spots in the Real Estate category at https://realestatevietnam.com.vn/.Any information sharing, feedback please email to contact.vietnamrealestate@gmail.com, Hotline (+84) 898 898 688 (24/7).
Special thanks!