HCMC proposes removing hindrances to develop real estate market

Ho Chi Minh City authorities made a proposal to clear bottlenecks for healthy and sustainable development of the real estate market.

The municipal People's Committee has just sent a document to the Ministry of Construction proposing many solutions to remove difficulties for the development of the real estate market.

Accordingly, in recent years, especially in the last 6 months of 2022, real estate businesses have faced many hindrances such as projects' legal status, problems in the procedures for approving investment policies, land allocation, and land use fee calculation.

In addition, the strict control of the credit market and the issuance of bonds and stocks have made it difficult for businesses to access capital. Besides, an increase in lending interest rates, gasoline prices, and construction material prices have been leading to higher operating costs of enterprises and the stoppage of construction projects.

Therefore, for the sustainable and healthy development of the real estate market, the southern largest city authorities proposed that revenue from land use levy from investors who fulfill financial obligations on the land fund for commercial housing projects will be supplemented in the city's housing development fund for investment in social housing development. In addition, the city will increase inspection and supervision of the compliance with the law on issuance, investment and provision of services on corporate bonds, especially private bond issuance of real estate enterprises, credit institutions relating to real estate enterprises, enterprises with large issuance volume, high-interest rates, enterprises with loss-making business results, and enterprises issuing bonds without collateral.

At the same time, the city proposed that ministries and functional agencies should allow investors who completed the compensation for site clearance and fulfilled financial obligations certified by a competent state agency while applying for certificates of land use rights to transfer the project or a part of corresponding projects.

Last but not least, HCMC proposed responsible agencies and ministries to soon promulgate regulations on real estate transaction tax rates and the number of taxable properties owned to motivate people to properly declare transaction values, and official transactions, increase revenue from real estate transactions and ensure transparent and healthy real estate business activities.

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