Focusing on resolving issues for over 130 real estate projects

​(News Portal – Dong Nai) - Chairman of the Provincial People's Committee Vo Tan Duc has recently directed the Department of Construction to take the lead, in coordination with other departments and sectors, in resolving issues for over 130 real estate projects. For issues beyond their authority, they will gather information to report to central agencies for directions. ​

A real estate project in Long Thanh District  

Resolving the issues with ongoing projects in the province will help revive the real estate market and create momentum to attract new projects.  

Three main groups of issues

As of the end of 2023, more than 180 real estate projects in the province were temporarily suspended from handling land, construction, and business procedures. These projects were carried out under the policy of land allocation and leasing by the government, and had investment decisions made between July 1, 2014, and 2021. After various directives from the Government, the Prime Minister's Task Force, and the Provincial People's Committee, many projects have resumed.

According to the Department of Construction, over 130 real estate projects in the province are still facing difficulties and obstacles in transactions and transfers from investors to buyers or lessees. These challenges are categorized into three groups.

The first group consists of projects that have constructed technical infrastructure on the allocated land, but social infrastructure and other facilities have not been built according to the plan, rendering the products ineligible for sale.

The second group includes projects that have completed technical infrastructure but have not finished housing construction or other social infrastructure as per the approved plan. The project timelines have expired, making it impossible to transfer land use rights by subdividing and selling plots.

The third group involves projects where both technical and social infrastructure have been completed, but housing has not been built. Now, investors are requesting to transfer land use rights by subdividing and selling plots, but the project timelines have expired.

These issues not only affect the rights of investors and transferees but have also caused a deadlock in the province's real estate market.

Focusing on resolving issues for the projects

According to the leadership of the Department of Construction, as of August 1, 2024, the 2023 Housing Law and the 2023 Real Estate Business Law have come into effect. The review of conditions for launching real estate products for sale will be carried out by state agencies responsible for real estate business management. To resolve the issues regarding the sale and transfer of project products, and to promote the healthy development of the real estate market, the Department of Construction has proposed solutions for each group of issues:

For the first group: If the project is still within its timeline, the investor should review and adjust the investment period, and proceed with project construction in accordance with the adjusted plan and investment schedule to bring the project products to market. If the project timeline has expired, the investor will be allowed to submit documents to extend the timeline and adjust the project's investment schedule to continue construction and bring the products to market.

For the second group, where housing and other facilities have not been built as per the plan, the Department of Construction proposes that the Provincial People's Committee instruct the Department of Planning and Investment to supervise the investment process and clarify responsibilities for the construction of social infrastructure and commercial-service facilities within the project. They will also advise the Provincial People's Committee on extending the project timeline to complete it.

For the third group of issues, the Department of Construction will base its decisions on current legal regulations and the investor's requests, the project's timeline, and the actual situation in the locality to determine when individuals who receive land use rights transfers must complete housing construction. Since the project deadline has passed, the Department of Construction will propose that the Provincial People's Committee instruct the Department of Planning and Investment to recommend an extension to complete the housing construction. If there is no basis for extending the timeline, the Department of Construction will propose that the Provincial People's Committee approve a 36-month deadline for the land use rights transferees to complete housing construction.

Provincial People's Committee Chairman Vo Tan Duc stated that the Department of Construction's initiative in categorizing the issues and proposing solutions for over 130 real estate projects is commendable. However, the proposed solutions mainly focus on adjusting the investment schedule, while adjusting investment policies is more challenging due to the differing legal requirements in each phase. Therefore, the Department of Construction should take the lead in coordinating with other departments and sectors to resolve issues for the ongoing real estate projects. ​