Decree 10 helps “defrost” the real estate market, many businesses can benefit

In general, Decree 10 is considered a positive support and shows that the authorities are concerned with the problems facing the real estate industry.

Decree No. 10/2023/ND-CP amending Decrees detailing the implementation of the Land Law (“Decree 10”) was issued in early April and will take effect from May 20/ 2023.

Decree 10 carries many expectations about removing administrative bottlenecks that have made it difficult for real estate project investors and affected the financial health of these businesses for many years. This is considered a solution to remove short-term and immediate problems in land law enforcement, before proceeding to the overall solution of promulgating the revised Land Law.

Specifically, Decree 10 amending and supplementing many regulations on the implementation of the 2013 Land Law thereby helping to clarify processes such as 1) Land allocation when only one contractor meets the preliminary criteria for a project, 2) Issuance of land use right certificates for real estate projects that are not residential, 3) Project transfer agreement, 4) Change of land use purpose other than residential land for project development, 5) Specify the time limit for the competent authority to issue a decision on land use levy, and 6) Supplement regulations on auction of land use rights.

According to Yuanta Securities, The new regulations clarify the conditions and procedures for land allocation after the investor completes the site clearance phase. Therefore, this will have a direct and positive impact on the residential projects that the developers are financing the planning, or are in the clearance stage like the projects of Khang Dien House (KDH)  are Tan Tao and Le Minh Xuan Industrial Park.

With that,resort projects will also benefit and other types of projects will also benefit while Decree 10 specifically guides the issuance of ownership certificates for these projects. This will be a plus point for buyers at projects such as Serenity Phuoc Hai and Poulo Condor of Phat Dat (PDR), Novaland’s integrated development of offices and resorts (NVL), Sonasea Van projects Don and Nha Trang of CEO Group (CEO).

In addition, Yuanta also expects More clarity on the land use conversion process will significantly speed up the project development process, especially for large projects. Currently, many projects have been delayed because of unclear old regulations, mainly related to land interleaved in projects such as agricultural land, riverside land, and public land. But the new regulations in Decree 10 have more clearly defined the conditions as well as the process of changing land use purposes.

As such, most real estate businesses will benefit from this regulation, some projects will benefit from this change such as Mizuki of Nam Long (NLG), Gem Riverside of Dat Xanh (DXG), Novaworld Phan Thiet and Novaworld Ho Tram of Novaland (NVL) and Vinhomes Can Gio, as well as industrial park development projects of Phuoc Hoa Rubber (PHR) and Vietnam Rubber Group (GVR) .

On the other hand, Yuanta’s analysis team also has a positive review of the establishment of a maximum period of 90 days to issue a land use levy decision (excluding the case of multi-factor land use levy) because this is the main bottleneck that has prolonged the development time of most projects, and also caused many projects to be completed and put into use. but residents have not been able to get a certificate of ownership.

In general, Decree 10 is considered a positive support and shows that the authorities are concerned with the problems that the real estate industry is facing. Real estate developers and investors in general will benefit from this positive change.

Also in a recent report, VNDirect Securities said thatDecree 10 has many positive additional changes for the real estate market.

The first is to add conditions to issue pink books for resort real estate products.

Second, additional regulation of land allocation when only one investor meets the selection requirement. With this new signal, many projects are “congested”, the lack of land allocation mechanism after investor approval across the country will be removed.

Third, Decree No. 10 also supplements the land recovery in case the operation of an investment project is terminated in accordance with the law on investment, except where the State recovers the land. In addition, there is an amendment and supplement to the regulations on the time of issuing the decision approving the land price.

VNDirect noted that it is still too early to assess that the real estate market will be active again when the actual implementation of policies is still empty and many legal bottlenecks have not been completely resolved. Promulgating policies can partially remove the bottleneck, but more synchronous solutions are needed in terms of both legal processes and access to capital for the real estate market to recover.

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