Real Estate Market in 2010: Activated by Regulations

The property market closed the year 2009 with impressive ups and downs. This is regarded as a stepping stone for the property market in 2010 to make breakthroughs. Right in early 2010, the market has attracted the attention of many investors by a number of provisions starting to take effect.

The Prime Minister has assigned the Ministry of Natural Resources and Environment to coordinate with other ministries, ministerial-level agencies, government-subordinated agencies, provincial/municipal People's Committees to perform land checking and map land-use status in 2010.

 

Accordingly, from January 1 to October 31, 2010, Vietnam will conduct to inventory the land and map the land-use status in 2010. This investigation is aimed to determine used land funds in and unused land area to introduce best measures.

 

The land inventory data in 2010 must identify the full natural area of administrative units at all levels, areas and numbers of owners using land classified in soil type and other objects. Land used for rice growing and forest will be specially concerned. In addition, the responsible agency will review and calculate ownership-certified areas and measured areas, etc.

 

This is considered an important task in vision planning in the future because this will associate with development objectives and land fund conservation for socioeconomic development objectives in the future.

While land prices in Ho Chi Minh City, the largest economic centre in Vietnam, are of minor changes in 2010, the rates in Hanoi, the second largest city, are in significant rise. According to the proposals of the People's Committee of Hanoi City, land prices in some districts like Ba Dinh, Hoan Kiem, Dong Da, Hai Ba Trung, Thanh Xuan, Tay Ho, Cau Giay, Hoang Mai and Long Bien are added up 21 %. Prices in other locations will be adjusted accordance with the price rise frame provided by the Government, with lower rates from the downtown of Hanoi to other further-lying areas. Ha Dong district will be subjected the same as surrounding Thanh Xuan and Tu Liem districts. After adjustment, land prices in downtown ward and major roads in Ha Dong will rise at most 40 %.

 

Land prices in inner districts will be at least VND1.8 million per sq. m and at most VND81 million per sq. m. The rates in urban localities in suburb districts will also increase, depending on the local infrastructure system and the distance from the heart of Hanoi. Thus, the land price frame in Hanoi in 2010 is expected to increase to a maximum of 40 %. According to some experts, the changes to the land price rise frame will make land prices nearer to market prices - a positive impact seen in land compensation, clearance and land-loss people support.

 

In addition, the new land price rice frame will largely affect the market land price, according to many experts. This will cause land prices in 2010 to continue rising.

According to the Decision 39 issued by the Ministry of Construction, in 2010, before dismantling old works or before building houses, construction units must actively coordinate with surrounding households to examine the status of existing works owned by them. State checking contents for adjacent works include the status of subsidence, incline, fracture, leakage, infiltration and abnormal states of adjacent works. Testing results and surveys must be announced publicly and transparently. It means that the results must be agreed by both owners of adjacent houses and owners of the rebuilt works and must be witnessed by representatives from local authorities if necessary.

 

Regarding houses with a total building floor area equal to or smaller than 250 square metres and with 2 floors or less, the owners can perform on their own, or hire organisations or individuals to check the quality of land where the construction is expected to take place. As regards houses with a total floor area greater than 250 square metres and with three floors or more, landlords are required to hire contractors for construction survey. The Ministry of Construction regulates that the dismantling must be performed by capable and experienced units.