Tighten up land division and sale activities in Ho Chi Minh City

Bảo Chương |

Ho Chi Minh City plans to not allow land projects to be established; instead, businesses must complete the construction of new housing before being able to transfer.

At the recent supervision session of the Ho Chi Minh City People's Council on the implementation of state management of construction order in the city for the City People's Committee, Mr. Huynh Thanh Khiet - Deputy Director of the Department of Construction - said that the reason leading to the widespread situation of illegal and unlicensed construction is due to the lack of synchronization of land use planning and construction planning, which has created inadequacies and obstacles in the implementation of planning and construction work.

In particular, the profits from buying and selling agricultural land and dividing plots of land for sale in the city are very large. There have been some speculators who have taken advantage of people's housing needs to convert the land use purpose and build houses on agricultural land for business or divide a house into many small houses. These subjects then conduct transactions in the form of private documents, leading to complicated construction in some suburban districts and outlying districts, breaking planning, forming synchronization, not having a society serving public interests... causing insecurity and disorder in the area.

Stemming from that reason, the Ho Chi Minh City Department of Construction has just proposed that real estate project investors throughout the city must invest in completing housing construction before carrying out transfer procedures.

This is to detail the provisions in Clause 6, Article 31 of the Law on Real Estate Business 2023. Accordingly, the law stipulates that the transfer conditions for land with technical infrastructure in real estate projects (land projects) are land not located in wards, districts, cities of special-class, class I, class II and class III urban areas; not subject to auction of land use rights to invest in housing construction projects according to the provisions of the Land Law, land use rights can be transferred to individuals to build their own houses.

But for the remaining areas (communes, towns, districts), the provincial People's Committee will base on local conditions to determine the areas where project investors are allowed to transfer land use rights. The Ministry of Construction previously also sent a document requesting the Ho Chi Minh City People's Committee to focus on directing the implementation of determining the areas where real estate project investors are allowed to transfer land use rights with technical infrastructure to individuals to build their own houses.

Administratively, Ho Chi Minh City has 5 districts including: Binh Chanh, Hoc Mon, Can Gio, Cu Chi, Nha Be, including 5 towns and 58 communes. These are all "remaining areas" that must determine where project investors are allowed to establish land transfer projects.

However, according to the Department of Construction, the city is developing the Project "Investment - construction of districts into districts (or cities under Ho Chi Minh City) in the period of 2021 - 2030", accordingly, from now until 2030, the districts will focus on investing in infrastructure construction towards urban targets to become cities under the city.

To avoid discrimination between commercial housing construction investment projects and to unify the application of legal regulations in the area, real estate project investors throughout the city must invest in the complete construction of housing according to regulations, then carry out procedures for transferring land use rights, house ownership rights and other assets attached to land to organizations and individuals according to regulations.

For real estate projects with the goal of resettlement using land in communes, towns, and districts of the city, ensuring the conditions prescribed in the Law on Real Estate Business 2023 and the Land Law 2024, project investors are allowed to transfer land use rights with technical infrastructure in real estate projects to individuals for self-construction of houses.

To unify state management of housing and enhance the responsibility of project investors, ensure synchronous investment in construction of technical infrastructure and social infrastructure in communes, towns and districts of the City, and at the same time avoid the situation where people build without permission, in violation of permits or do not ensure architectural management regulations.

Bảo Chương
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