Property Markets Dreaded For A Document

60 plots of land have been converted to investment projects spread from the North to the South where the Ministry of Finance sent the Prime Minister to refer the Government Inspectorate to serve the inspection of land According to the plan in 2017 is causing the property market wobbly, buyers confused.

It is worth mentioning, the document entered in Official Letter 2000 / BTC – TTR to the Prime Minister also makes the real estate business difficult.

Too many implications

A document from the Ministry of Finance that reviews data from the General Department of Taxation from 1 July 2014 to 30 November 2016 contains 60 cases of State-owned enterprises, joint-stock State-owned enterprises Permits for conversion of land use purpose. However, these enterprises do not calculate the value of land use rights in determining the value of enterprises for equitization and do not carry out auctions when equitized.

In addition, the rearrangement of the premises was approved by the People’s Committee of the province or city for the purpose of constructing a commercial center, office for rent and a house for sale but not conducting an auction in accordance with Land Law.

In order to handle the shortcomings in land management and use, the Ministry of Finance has sent Official Letter No. 2000 / BTC-TTR to the Prime Minister for transfer to the Government Inspectorate for subsequent land inspection. The 2017 plan for projects showing signs of failure to comply with the investment objectives, signs of violation of the Land Law and determination of land use levies and land rents that are not close to market prices, country.

The property market is plunging after the Ministry of Finance’s official letter

The Ministry of Finance also proposed that the Prime Minister request the Chairman of the People’s Committee of provinces and cities temporarily suspend the construction of high-rise building projects that are not implemented properly authorized to hand over land without auction. They must report to the Prime Minister according to their competence.

The Ministry of Finance named 60 projects that are suspected of causing a loss of state budget is causing a series of real estate companies to dizzy. Over the past few days, property companies in Ho Chi Minh City must arrange more people to answer questions of customers.

“People buying houses on the list of 60 projects are very worried. They fear the project will be suspended construction will affect the progress and then get a certificate of land use right, “a representative of a business said.

The most worrying business is that the Ministry of Finance also recommends temporarily suspend the construction of projects, although not known whether the budget or not. This will have serious consequences for the real estate market and home buyers, as in Ho Chi Minh City announced 77 projects mortgaged to banks.

Moreover, if the inspector has not suspended the project and pointed out the violation, then that time must be calculated in years. Meanwhile, the project just stopped construction about a year is the quality of works down and business losses are unavoidable.

During the suspension period, not only direct job loss but tens of thousands of workers involved contractors involved. According to the HCM City Real Estate Association, the staff of architects, engineers, office workers, secretaries, advertisers, marketing work in the real estate industry a lot. There are also workers in the steel, bricks, cement and countless chemical industries used to build large projects.

Most of the projects are bank loans for construction, customers also borrow money from banks to buy houses. The project is adjusted, the bad debt of enterprises and the bank will be larger. The real estate market, which has slowed down in the first months of 2017, will be badly affected. If after the inspection, do not detect mistakes, the loss of business who will compensate?

Business innocent

It is worth mentioning, most projects named by the Ministry of Finance have completed financial obligations to the State and some other projects have handed over the house to customers. For example, the project of trading office-telecommunication services and apartments at 128 Hong Ha Street in Phu Nhuan District has completed its financial obligations, has been completed and is undergoing commissioning and commissioning.

Meanwhile, the office-telecommunication and office area project at 8 Hoang Minh Giam, Phu Nhuan district has also fulfilled its financial obligations to the State and prepared the pre-acceptance test of the project but the Ministry of Finance The name still owes nearly VND30.4 billion.

Real estate is related to a series of other industries so the proposal to stop construction of 60 projects will leave heavy consequences.

Similarly, the project of Commercial and Service Apartment Building at 504, Nguyen Tat Thanh, District 4 is completing to prepare the handover. Land for this project was transferred from production land through the land to build commercial buildings and services with the amount of land used to pay more than VND103 billion.

Real estate expert, Tran Khanh Quang said that the valuation of land in the equitization of SOEs is a matter of the State rather than the business of doing wrong. How many land price appraisal process, payment of land use fees belong to the functional agencies, enterprises do not have the right to intervene. The real estate companies go to work, the state newspaper must pay how much land valuation, then pay only. The business is not wrong and innocent in this matter.

“The Finance Department is the representative of the Ministry of Finance in the localities. The process of land valuation, payment of land use fees has the opinion of the Department of Finance. The wrong thing in this story belongs to the State, “Mr.Quang said.

He added that the question is why, when the project is in the process of applying for investment procedures, from the land valuation, planning appraisal and construction licensing, the Ministry of Finance and the Department of Finance Mainly not checked to detect wrongdoing. When the project has been executed, to pay the financial obligations to the State and hand over the client’s house, request the construction stoppage.

Most of the projects are bank loans for construction, customers also borrow money from banks to buy houses

Mr. Quang said, 60 projects are just a reference list. The Ministry of Finance sent to the Prime Minister to refer the Government Inspectorate, serving the inspection of land under the plan in 2017 is very normal. This is just an offer, not an inspection decision.

Meanwhile, Le Hoang Chau, chairman of the HCM City Real Estate Association, has sent a letter to the Prime Minister, suggesting that investors continue to carry out the project. The enterprise must make a written commitment to fulfill the financial obligations incurred for the project after the conclusion of the inspection by the competent agency. This helps businesses complete projects put into use, avoid wasting time and social wealth, and ensure the interests of home buyers.

“Buyers who have entered into a sales contract with a list of 60 projects are not faultless, so they are not responsible for the financial obligations incurred by the project owner,” Mr.Chau said.

In the long term, Ho Chi Minh City Real Estate Association expects the Prime Minister to soon issue a decision amending and supplementing Decision No. 09/2007 / QD-TTG dated January 19, 2007, Decision No. 140/2008 Decision No. 86/2010 / QD-TTG dated 22 December 2010 to create a transparent and equitable legal framework to implement the policy of rearranging houses and land State ownership, relocation of establishments polluting the environment according to urban construction planning.

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