Property

Inconsistencies in policies and delays in the implementation of ownership certificate procedures are causing frustration among customers and difficulties for investors and have stalled the development of the tourism real estate market. Economists therefore suggest that Vietnam promptly complete the legal framework to fully exploit and develop this type of real estate.

Ho Chi Minh City will kick-off construction this month of four new projects in social housing, worker accommodation, and upgrades to old apartment blocks, bringing more than 3,000 units on to the market. Under planning, the city is to develop 2.5 million sq m of social housing in the 2021-2025 period, or 35,000 apartments.

Under a draft decree from the Ministry of Natural Resources and Environment (MoNRE) amending and supplementing a number of decrees detailing the implementation of the Land Law, it is proposed that a Land Fund Development Organization operate under a business model. The Organization would provide public products and services with 100 per cent of charter capital held by the government.

There are many conflicting views on whether to tax real estate given that “land fever” has appeared in recent times. Many analysts believe that imposing a property tax would be an effective tool to limit real estate speculation. Others, however, believe that even if the Law on Property Tax is enacted soon, it will not have much of an impact on real estate prices over the long term.

Hanoi will continue to sell 600 old State-owned villas from a list of sold or half-finished properties. The capital currently has 1,216 villas, including 367 State-owned villas, 732 mixed-use villas with mixed ownership, and 117 privately-owned villas. Many are degraded and damaged, but there is insufficient funding for maintenance, renovation, and repair.

The task of adjusting the general planning on the construction of the Van Phong Economic Zone in south-central Khanh Hoa province to 2040 and vision to 2050 has been approved. With an area of 150,000 ha, the Economic Zone will become a driving force for development, a smart and sustainable urban area, and an international marine tourism and service center with many diverse entertainment activities, including casinos.