Vietnam Real Estate Daily: Land Transparency and Stronger Social Housing Supply

Vietnam’s real estate market is seeing a range of proposals aimed at improving transparency and making more effective use of land resources. Assigning an identification code to each land parcel is expected to help trace transaction histories, verify property prices and limit the declaration of dual prices if databases are connected and synchronized. At the same time, the Government has proposed a 0.2% tax rate on abandoned land, land not put into use or land whose use has been delayed, in order to institutionalize the spirit of Resolution 21 of the Party Central Committee. A proposal to recover land from projects that remain unused for more than 60 months has also received support, although it is necessary to distinguish between investors that intentionally delay implementation and projects facing legal obstacles. One delegate also called for careful consideration of any changes to notarization requirements for land transactions, amid a past mindset that buying land would automatically bring profits and led some buyers to overlook legal issues.

Housing policy remains a major focus as the supply of affordable homes continues to fall short of demand. A proposal has called for an additional housing segment priced at 60 to 70 million VND per square meter for low and middle-income earners. The Government has also submitted a proposal under which social housing buyers may resell their homes after five years, provided they have fully paid for the property and received the certificate, while the resale must be made to an eligible buyer. Hanoi has allocated more than 11,400 square meters in Dong Anh for a project combining social housing for police officers and commercial housing. In Phu Tho, a nearly VND1.695 trillion project covering about 5.36 hectares will include five nine-story buildings for members of the People’s Public Security forces. However, many construction workers still find it difficult to access social housing information, with nearly half of 500 surveyed workers lacking knowledge of their entitlements, support contacts and procedures.

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