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| Illustrative image__Photo:VNA |
Land Law - a tool to make real estate market more transparent
The Land Law, Housing Law and Law on Real Estate Business, which took effect on August 1, should mean that the real estate market will move to a new phase and operate in a more transparent manner. The Vietnam News Agency spoke to Dao Trung Chinh, Director of the Department of Planning and Land Resources Development, Ministry of Natural Resources and Environment, on this topic.
Since the 2003 Land Law was enacted, it was reported that some projects have been stuck for many years without being resolved and some localities cannot determine land prices. How does the 2024 Land Law contribute to solving these problems?
The 2024 Land Law has a separate article (Article 257) with transitional provisions to give instructions on the determination of specific land prices for cases in which land has been allocated or leased before the effective date of the 2024 Land Law but land prices have not been determined.
Localities now have a legal basis to complete land price valuation and ask completion of financial obligations in these cases.
The Government issued Decree 71/2024/ND-CP regulating land prices and Decree 103/2024/ND-CP on land use levy and land rental, which specify methods of land price determination and the calculation of additional payments for each case in which land has been allocated or leased by the State under the 1993 Land Law, the 2003 Land Law or the 2013 Land Law but land prices have not yet been determined.
The 2024 Land Law and its guiding texts have created a complete legal corridor for localities to execute and resolve long-standing backlogs related to land valuation.
Many experts believe that the new provisions of the 2024 Land Law will improve transparency in the real estate market, but they may also raise prices. A new law being passed and real estate prices falling is an unprecedented occurrence. What is your opinion?
It is anticipated that new regulations, which remove the land price framework, update the price list annually and give district authorities the authority to decide on prices, will enhance land use, allocation and budget revenue.
The real estate market will undoubtedly be impacted by this in a variety of ways. For instance, investors and individuals are able to forecast future trends in land prices because of the adjustments made to land prices during each period.
This contributes to the real estate market's increased stability and transparency.
This will also have an impact on the price at which homes and apartments are sold in neighborhoods with public infrastructure or investment projects.
The new provisions of the 2024 Land Law will contribute to a more equitable and transparent real estate market. This has a variety of effects on the real estate market and aids in guaranteeing the rights of both land buyers and land sellers.
Additionally, the 2024 Land Law features novel regulations that establish a distinct and varied pathway for businesses to obtain appropriate land funds to carry out projects that guarantee supply for the limited real estate segment, particularly for mid-range real estate.
Numerous specialized legal systems, including law on credit institutions, law on real estate business and housing law, have impacts on the real estate market.
A number of significant policies have recently been released and amended.
The recently enacted land law policies will help balance the supply and demand for housing, solve a number of real estate project roadblocks and improve the environment for future real estate market activities.
In order to remove obstacles in the current real estate market, including those in land valuation, implementation of land-related financial obligations, what specific solutions should be taken?
The 2024 Land Law has many new, innovative and breakthrough contents which improve the effectiveness and efficiency of land management and use.
Of the total 260 articles, 97 articles are assigned to the Government, Prime Minister, ministers, and provincial-level People's Councils and People's Committees to detail and guide the implementation of the Law.
The 2024 Land Law will immediately be effective when implemented, especially the contents on land users' rights such as compensation, support and resettlement policies when the State recovers land; land policies for ethnic minorities; land policies for overseas Vietnamese citizens; land-related finance and land price policies, allowing land users to use land for multiple purposes; promoting decentralization, reforming administrative procedures, cutting down on intermediaries in land management and use, reducing compliance costs in access to land.
In order to remove obstacles in the current real estate market, related ministries and sectors need to continue to step up dissemination of the 2024 Land Law and guiding documents to every agency, unit, association, socio-political organization and those affected.
Ministries, sectors and localities need to urgently review land-related legal documents to issue them according to their authority or submit to competent state agencies for revision or replacement to ensure consistency with the 2024 Land Law.
They must also effectively implement the 2024 Land Law and closely link decentralization with inspection, examination and supervision to promptly detect violations and impose strict punishment measures.__(VNS/VLLF)
