The Ministry of Construction has recently sent to the Prime Minister for consideration a strategy for real estate market development, which sets forth nine solutions regarding legal framework and real estate registration system improvement and foreign capital attraction.
These solutions include: (i) improving the legal framework for sustaining a healthy real estate market with a uniform and information technology-based registration system for real estate ownership and land use rights; (ii) renewing the work of planning socio-economic, industrial, urban and rural development; (iii) stepping up the auction of land use rights to effectively regulate the market and increase budget revenues; (iv) diversifying housing commodities to better meet market demands and issue regulations on structure of house types from the stage of planning and project approval; (v) developing financial institutions which can help attract capital sources for the real estate market and formulating flexible credit mechanisms and policies for commercial banks to mobilize medium- and long-term sources with stable interest rates for the market and provide loans for stable medium-income earners to purchase houses; (vi) improving real estate-related tax, charge and fee regulations, including revising the Law on Non-Agricultural Land Use Tax, the Law on Personal Income Tax and regulations on real estate-related registration fees; (vii) promoting foreign investment in hi-class hotels, resorts, apartment buildings and infrastructure facilities of large and special-type industrial parks and urban centers; (viii) building a system for provision of uniform and reliable real estate market information and forecasts, and stipulating the responsibility of housing investors and trading floors to provide information on real estate projects, implementation progress and transactions; and (ix) thoroughly implementing the “single-window” mechanism in administrative procedures for grant of certificates of land use rights and ownership of house and construction works, certification of ownership transfer, real estate mortgage and mortgage release.-
