Recently, the 15th National Assembly passed the Housing Law (amended) on November 27 and the Real Estate Business Law (amended) on November 28. At this session, the National Assembly has not yet passed the Land Law (amended).
The final drafts of the Housing Law (amended) and the Real Estate Business Law (amended) have not been published yet, but the National Assembly announced that the effective date of these two Laws will be from January 1, 2025.
In the newly published real estate industry analysis report, Vietcap Securities Company gives comments on the Housing Law (amended) on the real estate market and businesses.
Impact of the Housing Law (amended)
This securities company assessed that the Housing Law (amended) provides a clearer and more flexible legal framework for investors developing social housing in three aspects.
First, exemption of land use fees (LEF)/land rent for land allocated for social housing projects without the need for LIF determination procedures.
Second, do not require 20% of land in commercial projects to be reserved for social housing and provide alternatives for investors to fulfill social housing obligations.
Third, the maximum profit is 10% for the social housing construction area, not for the entire project.
From the perspective of home buyers, the amended Housing Law expands the group of subjects eligible to buy social housing and stipulates that social housing buyers are only allowed to resell their houses to investors or to subjects eligible to buy social housing at a maximum selling price equal to the selling price of this social housing in the sales contract with the investor of the social housing construction investment project.
This is intended to ensure access and affordability of social housing for low-income earners and workers.
For businesses, investors with social housing projects in their development plans such as Vinhomes Joint Stock Company (stock code: VHM) and Nam Long Investment Joint Stock Company (stock code: NLG) will benefit from the changes in the Law.
In addition, the provisions of the Housing Law (amended) can support the adjustment of the master plan for some large-scale commercial projects when investors have proposed to arrange social housing outside the project.
The regulation of a maximum profit of 10% for the social housing construction area instead of the entire project is considered to help investors gain more profit from developing social housing through the commercial area.
The revised Housing Law provides a clearer and more flexible legal framework for investors (Photo: Doan Cong).
Impact of the Law on Real Estate Business (amended)
The Law on Real Estate Business (amended) stipulates stricter legal requirements for investors before they can open for sale future projects and collect money from homebuyers. This is to protect homebuyers from the risk of investors raising capital from customers before completing the necessary legal procedures.
These regulations can result in developers spending a lot of time preparing to meet all necessary legal requirements and start construction before launching sales.
The analyst believes that there will be no significant impact on investors with a track record of project development such as Vinhomes, Nam Long, Khang Dien House Investment and Trading Joint Stock Company (stock code: KDH) due to the proactive approach of this unit in meeting legal requirements and completing the foundation construction before starting sales.
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