Expanding the scope of land for commercial housing development
Draft Decree guiding the implementation of Resolution No. 171/2024/QH15 of the National Assembly on piloting the implementation of commercial housing projects through agreements on receiving land use rights proposes to expand the scope of land that can be used for commercial housing development. This helps increase land funds for housing development, creating more opportunities for real estate businesses.
According to Article 3 of the draft Decree, the land for project implementation can include one or more plots of land, a part of a plot of land or many different plots of land. This helps real estate businesses be more flexible in project development.
In addition, according to Clause 2, Article 3, real estate business organizations are allowed to use land in the following cases:
- Having a Land Use Rights Certificate.
- Land allocated or leased by the State but without a Certificate.
- Receive land use rights through the purchase and sale of assets, contributing capital in assets attached to land but without a Certificate.
Thus, with expanded land funds, investors can access many new areas to develop projects, especially in suburban areas or areas in the process of urbanization. This can promote balanced development between regions, reducing population pressure in large cities.
However, according to Article 9 of the draft Decree, enterprises cannot arbitrarily use land but must go through a mechanism of agreement to receive land use rights with the people. This helps ensure the rights of land owners, but also poses challenges in negotiating to have a suitable land fund for the project.
Although the draft expands the scope of land that can be used for commercial housing development, for the project to be implemented in practice, businesses still need to carry out strict legal procedures.
According to Article 10 of the draft, enterprises must complete the steps from approving investment policies, carrying out land procedures, to determining financial obligations. This is to ensure that urban planning is implemented in the right direction, avoiding the situation of using land for personal use and disrupting the development balance between areas.
Process of selecting land for project implementation
According to Article 5 of the draft Decree, the agency with the function of provincial land management will establish a List of land areas expected to implement the pilot project. This is done on the basis of registration from a real estate business organization and assessment of land use criteria.
In case the registered land area exceeds 30% of the planned area, the choice of land will be prioritized in the following order:
- The project has been approved for investment policy.
- The project on land for production and business establishments that must be relocated.
- Project of the Ministry of National Defense, Ministry of Public Security.
- The project is proposed by an organization with land use rights.
