FLASH NEWS 30/11/2023: Real estate business law 2023 and Housing Law 2023
01/12/2023 - 2:56:35 CHThe National Assembly approved the Housing Law 2023 on November 27, 2023 which took effect from January 1, 2025. Key changes/amendments are summarized in the table below.
Comment: Among the changes/amendments mentioned above, we think that the regulations which allow developers of commercial housing projects to build social housing in other locations or pay money equivalent to the value of the social housing land area, and separate commercial housing and commercial services projects with social housing projects have the most positive impacts in removing difficulties for developers. However, the Law takes effect from January 1, 2025, so in 2024 developers may continue to encounter difficulties in developing social housing projects.
In general, the revised Housing Law focuses on promoting social housing and worker housing projects by removing difficulties in accessing land bank, expanding subjects eligible for social housing support policies, reducing conditions to be eligible for social housing support policies and increasing incentives for developers, etc. which have a positive impact on all real estate companies, especially social housing developers. These changes/amendments support the Government to achieve its goal of building 1 million social houses by 2030, solve social welfare issues and remove difficulties for developers. However, in reality, we believe that accessing to preferential credit sources and administrative reforms related to project approval and inspection, etc. are also very important in the development of social housing. Thus, assessing actual impacts of the revised Housing Law on these companies needs to wait for specific guidance from legal documents to be issued later.