Ho Chi Minh City People's Committee has just issued Decision No. 83 on determining areas where land use rights with technical infrastructure can be transferred to organizations and individuals to build their own houses.
According to this new regulation, in addition to wards and districts, land in 5 suburban districts (including Binh Chanh, Hoc Mon, Can Gio, Cu Chi, Nha Be) cannot be divided into plots for sale.
Accordingly, investors of real estate projects and housing construction investment projects in Ho Chi Minh City are not allowed to transfer land use rights with technical infrastructure in the project to organizations and individuals to build houses themselves.
As for project owners with the goal of resettlement by land in communes, towns, and districts, ensuring the conditions prescribed in Article 31 of the 2023 Law on Real Estate Business and Article 45 of the 2024 Land Law, investors are allowed to transfer land use rights by land to people to build their own houses.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that the Ho Chi Minh City People's Committee should review and amend Decision 83. Accordingly, the Association's view is that the above regulation lacks legal basis and is not consistent with current law.
The 2023 Law on Real Estate Business (effective from August 1, 2024) prohibits the subdivision and sale of land in wards, districts, and cities of special, type I, II, and III urban areas. For the remaining areas, localities will determine areas where projects can be established by subdivision and sale of land to individuals for self-construction of houses.
With this regulation, Ho Chi Minh City is a special urban area. 21 districts, towns and the city (Thu Duc City) will not be allowed to establish projects to divide land into plots for sale. The remaining 5 suburban districts, namely Binh Chanh, Nha Be, Hoc Mon, Cu Chi and Can Gio with 5 towns and 58 communes under their jurisdiction, are still rural areas, under the decision-making authority of the city.
According to the Association's viewpoint, the suburban districts are rural areas, the demand for buying, selling and transferring land to build houses for themselves in these areas is still very high, so banning the subdivision and sale of land for individuals to build houses for themselves at this time is not suitable with the reality and current regulations. Therefore, the Association proposes to amend the regulations in the direction of specifying in detail the determination of areas that are allowed to transfer land use rights (with technical infrastructure) for people to build houses for themselves in communes in suburban districts of Ho Chi Minh City according to current regulations.
Meanwhile, many opinions are concerned that this regulation may cause a shortage of land supply in Ho Chi Minh City, the regulation prohibiting the subdivision and sale of land in Ho Chi Minh City may have a significant impact on the market, when at the same time a new land price list is issued. Residential land and subdivided land will increase in price sharply. Along with that, the compensation and site clearance prices for infrastructure projects may also increase accordingly.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, commented: "The regulation prohibiting the subdivision and sale of land will help reduce legal risks for home buyers. However, at this time, the regulation may not be suitable for reality when the market has just gone through a difficult period."
