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Given the fact that the real estate market has only just entered the recovery phase and its growth has not been solid yet, HoREA proposed that the conversion fee from agricultural land to residential land will be reduced from 80% 50% of the land price.

Le Thanh Chau, chairman of HoREA, said in a written petition to the City People’s Committee, City Council, Department of Construction, Department of Finance this afternoon (August 2).

Previously, the Department of Finance of Ho Chi Minh City said that in the manufacturing sector, industrial parks, export processing zones often use relatively large land, but profit is not as high as the area of housing, trade, service. Therefore, the Department proposes to divide into two groups to create reasonable rates, specifically:

In case of changing the use purpose of land specializing in growing wet rice into the residential land; Land for business services, trade; finance; restaurant; hotel; Office for rent and lease: The percentage (%) of the amount of protection and development of rice land is equal to 80%.

You can read more information at Vietnam Real Estate Investment

In case of change of land use purpose for production of cottage industries and handicrafts; factory; mineral activities; Production of building materials; land for construction of public works for business purposes; land for the construction of supermarkets, shops for trade and services for stabilizing prices; petrol stations; construction of infrastructure for transfer or lease … The percentage (%) of the amount of protection and development of paddy land is 50%.

HoREA, however, found that the proposal of the Department of Finance was not in good faith. “There is no scientific basis and in practice to say that investment in manufacturing, industrial parks and export processing zones is not as high as in the areas of housing, trade and services. As a matter of fact, there are big investors who have invested in big industrial parks and have been more profitable and stable than real estate developers, “Chau emphasized.

In addition, Mr. Chau also said that the investors of residential real estate projects also have to implement a series of other constraints such as 20% of business land for social housing; spend 20% of the project apartment for rent; To provide a bank guarantee when selling houses to be formed in the future; Investment in electricity supply, water supply …. Meanwhile, the owners are trying to reduce the price so that consumers have access to housing.

Due to the fact that the real estate market has just recovered and its growth has not been solid yet, HoREA suggested the People’s Council and the City People’s Committee only stipulate the land rent equal to 50% of the price of paddy land. This is because real estate developers have to carry out a lot of obligations in the implementation of the project, which ultimately costs the consumer the cost of buying a home.

You are reading the article “It Is Worried About Adding To The Burden On Homebuyers” in the section “Real Estate News” on the website: www.realestatevietnam.com.vn
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