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Tuesday, June 25, 2024

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Challenges for housing developers

The legal framework for real estate transactions and the real estate market is shaped by four important laws, including the Civil Code, Land Law, Real Estate Business Law, and Housing Law. Except for the Civil Code, the other three laws have been amended and supplemented in 2023 and 2024, all taking effect from the beginning of 2025, with many new provisions more stringent than the current regulations. This will certainly affect the constituents of the real estate market, including real estate enterprises. In terms of opportunities, with an aim to build a stable, healthy, transparent, and open real estate market, the 2023 Real Estate Business Law and 2023 Housing Law expand forms of capital mobilization for investors such as deferred payments, installment payments from customers… However, investors also face many challenges. Commercial housing projects will find land scarcer At present, housing developers have various ways to access land such as government’s allocation of land with a fee, land leasing, and land use right transfer. For commercial housing projects, the new Land Law still allows investors to request land allocation by the State for a fee. The allocation of land for housing development, according to the new Housing Law, must be […]
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