Vietnam Real Estate Daily: Over 3,400 Projects Unblocked Amid Rising Legal and Lending Pressures

Vietnam’s real estate market has recorded several notable moves concerning legal obstacles and the handling of idle assets. As of September 15, more than 3,400 troubled real estate projects nationwide had been addressed, involving total investment capital of over VND 2.5 quadrillion. The Ministry of Finance has also asked central agencies and localities to urgently review and approve plans for handling surplus houses and land after administrative reorganizations, with completion required this year. In addition, Deputy Prime Minister Ho Quoc Dung chaired a meeting on the draft amended Land Law and called for a careful review of its policies. In logistics, a new direction is being considered: moving from development based on administrative boundaries toward organization by economic regions, economic corridors and supply chains.

Notably, amendments to the Law on Real Estate Business are expected to create an opportunity to resolve issues surrounding resort real estate assets that have been developed over nearly two decades. However, any policy opening should be accompanied by mechanisms to protect buyers and principles for classifying dossiers without legitimizing violations. In Nha Trang, the 48-48A Tran Phu land plot, which had been abandoned for many years, is now being leveled for a high-end commercial and tourism services complex. Meanwhile, Da Nang’s Chi Lang Stadium has been offered for auction for the fifth time, with a starting price of VND 8.82 trillion, nearly VND 900 billion lower than the initially announced price. In Ho Chi Minh City, experts have recommended exploiting land funds around metro stations under the TOD model to generate long-term revenue instead of simply selling land to offset infrastructure costs.

In the housing segment, the issue of apartment usage periods continues to attract attention. Determining a period based on the service life of a building could put pressure on prices of older apartments, although the impact will depend on the building’s age, quality and remaining service life. Buyers should carefully examine the building’s age, quality, legal status and renovation plans; the end of a construction period does not mean losing ownership of an apartment. At HH Linh Dam, asking prices for many apartments have fallen by hundreds of millions of dong, and in some cases by more than VND 1 billion after over a year, while legal risks are considered the main concern. Residents have also waited more than 10 years for ownership certificates and remain anxious about whether their apartments will be allowed to remain or face relocation. With floating home-loan rates exceeding 16% a year, financial pressure on buyers continues to increase.