Dự thảo luật mới tác động thế nào đến thị trường BDS - Kevin Hawkins, Partner, DFDL | Home&Beyond

TL;DR

Upcoming laws in 2025 will reshape Vietnam's real estate market.

Transcript

welcome back home and Beyond viewers in session one we talked about what happened in 2023 and some of the outlook for 2024 in discussion with uh Mr kitall uh we also realized that there are a lot of changes in the law that will come into effect 2025 so we have here today Mr Kevin Hawkins is a partner from dfdl joining us today thank hi hi good afte... Read More

Key Insights

• The new laws will provide indefinite rights to apartment owners, ensuring clarity and security in ownership, even if properties are destroyed or need rebuilding.
• Developers must fulfill financial obligations before selling, expediting the process for owners to acquire land use right certificates, thereby enhancing market confidence.
• New restrictions on freelance brokers aim to increase market transparency and reduce false transactions, requiring brokers to be affiliated with real estate companies.
• A maximum deposit limit of 5% for future acquired houses may lead to increased speculation as developers struggle with financing, potentially reducing supply.
• The laws expand the categories eligible for social housing and offer developers tax exemptions and incentives to encourage the construction of social housing.
• Clarifications on compensation and resettlement for old apartment buildings are introduced, with incentives for developers to rebuild or renovate aging infrastructure.
• Foreign enterprises can now purchase real estate without the previous restriction of using it solely for employees, potentially increasing foreign investment in the market.
• The introduction of model contracts for real estate transactions aims to standardize agreements, enhancing transparency and protecting buyers' interests.

Questions & Answers

Q: What changes are being made to apartment ownership rights?

The new laws will grant indefinite rights to apartment owners, ensuring that even if properties are destroyed or need rebuilding, owners will be compensated or resettled. This change addresses previous uncertainties regarding the expiration of apartment ownership and provides greater security and clarity for owners.

Q: How will the new laws affect developers' financial obligations?

Developers will be required to fulfill their financial obligations before selling future acquired houses. This change is expected to expedite the process for owners to acquire their land use right certificates, thereby enhancing market confidence and ensuring that developers are more accountable in their financial dealings.

Q: What impact will the restriction on freelance brokers have on the market?

The restriction on freelance brokers aims to increase transparency and reduce false transactions in the real estate market. Brokers will now need to be affiliated with real estate companies, which should build confidence among buyers by ensuring that they receive accurate and reliable information during transactions.

Q: What are the potential consequences of the 5% deposit limit for future acquired houses?

The 5% deposit limit for future acquired houses may lead to increased speculation, as developers may struggle with financing and fewer projects may be initiated. This could result in reduced supply, potentially driving up prices and encouraging speculative buying behavior in the market.

Q: How are social housing regulations changing?

The new laws expand the categories eligible for social housing to include students and cooperatives in industrial parks. Developers will receive tax exemptions and incentives, such as profit margins on construction and services, to encourage the development of social housing, thereby increasing availability and access for eligible groups.

Q: What incentives are provided for rebuilding old apartment buildings?

Incentives for developers to rebuild or renovate old apartment buildings include exemptions from land lease and land use fees, access to land funds, and the ability to profit from services associated with the housing. These measures aim to encourage the redevelopment of aging infrastructure and improve housing conditions.

Q: How will foreign enterprises be affected by the new real estate laws?

Foreign enterprises will no longer be restricted to using purchased real estate solely for employees. This change aligns the definition of foreign investors with the enterprise and investment laws, potentially increasing foreign investment in Vietnam's real estate market by offering enterprises greater flexibility in property usage.

Q: What is the purpose of introducing model contracts for real estate transactions?

Model contracts for real estate transactions aim to standardize agreements, ensuring transparency and protecting buyers' interests. Developers will be required to upload these contracts to their websites, providing full visibility and consistency in transactions, which is expected to enhance confidence and reduce disputes in the real estate market.

Summary & Key Takeaways

• The podcast discusses upcoming changes in Vietnam's real estate laws, set to take effect in 2025, which aim to provide greater clarity and security for apartment ownership, expedite the acquisition of land use right certificates, and regulate freelance brokers.

• New regulations will limit deposits for future acquired houses to 5%, potentially impacting market speculation and supply. The laws also expand social housing eligibility and provide incentives for developers to rebuild old apartment buildings.

• Foreign enterprises gain more flexibility in purchasing real estate, and model contracts will standardize transactions, increasing transparency and buyer protection. These changes aim to modernize and stabilize Vietnam's real estate market.