Directive 11/CT-TTg on fostering stable, sound development of real estate market

THE PRIME MINISTER

Directive No.11/CT-TTg dated April 23, 2019 of the Prime Minister on certain solutions for fostering stable and sound development of real estate market

Over the past few years, government authorities in various levels, ministries, local government authorities and enterprise community have actively tried their best to follow law provisions and guidelines, and have implemented solutions and policies issued by the Government on real estate market. For that reason, the real estate market not only has made recoveries since 2014 but also been on the rise and have made positive contributions to socio-economic development, social security assurance and macroeconomics stability.  However, the development of real estate market is not actually stable and faces potential risks. There doesn t seem any logic in the structure of real estate products; high-class housings with large area and high selling prices are in surplus while there is a deficiency in social housings and low-price housings suitable for demands of most people. Prices of real estate products, especially housing prices, are quite higher than the people’s income and there are not enough financial supports. Database and information on real estate market from the stage of planning, investor selection, project implementation to transaction are non-synchronous, insufficient, unreliable and non-transparent.

The main reasons for limitations and shortcomings include: The law system governing real estate market fails to satisfy actual demands, or have not been promptly amended; the investment and development of real estate projects in certain local areas fail to follow the planning scheme and plan and are not suitable for the market demand and real conditions; the work of state management is not strictly and promptly done and fails to meet management requirements.

For the purpose of overcoming these shortcomings and fostering the stable and sound development of real estate market, the Prime Minister hereby requests ministries and local government authorities to perfectly perform duties and solutions as follows:

1. The Ministry of Construction

a) Finish the project on Laws on amending and supplementing the Law on Construction, the Law on Housing and the Law on Real Estate and send it to competent authorities for consideration purpose as specified in the National Assembly s law-making program. To be specific: provide additional housing support policies intended for officials and public employees having difficulty in finding affordable and livable housing and overcome other shortcomings and unsolved problems to be suitable for the reality;

b) To amend and supplement regulations and standards for construction of various types of apartments, condotels, resort villas, officetels; boarding-houses and rooms for rent. To issue the regulations on management and operation of officetels by 3^rdquarter of 2019.

c) To urge local government authorities to finish and operate the housing and real estate market information system as prescribed in the Government s Decree No.117/2015/ND-CP dated November 12, 2015; cooperate with ministries in the course of information collection to complete the market information on housing and real estate; 

d) To conduct the amendment and supplement the Decree No.100/2015/ND-CP dated October 2015 of the Government on development and management of social housings (after the Law on amending and supplementing a number of Articles of the Law on Housing is approved);

dd) To urge and instruct the local government authorities to foster the development of social housings under the Prime Minister s guidance provided in Directive No.03/CT-TTg dated January 25, 2017;

To cooperate with other ministries in intensifying inspection and requesting investors in urban area and housing development projects to concurrently construct technical infrastructure, social infrastructure and fire safety system included therein which are connected to the general infrastructure project before house transfer in compliance with provisions of the construction law, housing law and relevant law provisions;

To monitor and collect situation periodically or irregularly for reporting the reports on real estate market development to the Government and Prime Minister for the purpose of promptly working out solutions for stabilizing the market when there is any abnormal sign or considerable fluctuation.

2. The Ministry of Planning and Investment

To advise, report the Government on allocation of funding for social housing development as specified in Decree No.100/2015/ND-CP dated October 20, 2015 of the Government on development and management of social housing; promptly allocate funding for social housing development after the Resolution on the plan for using funding for public mid-term investment in the 2016-2020 period. 

3. The Ministry of Natural Resources and Environment

a) To issue the documents providing guidance on land use to some types of real estate such as condotel, resort villa, officetel as per law provisions by 3^rdquarter of 2019;

To amend and supplement the land use regime, issue certificates of land use rights and ownership of other property on land for certain new types of real estate such as condotel, resort villa or officetel included in the project on the Law amending a number of Articles of the Land Law according to the National Assembly s law-making program;

b) To instruct the People’s Committees of provinces and centrally-affiliated cities to review, make, adjust and publish land using plan/planning as regulated;

c) To intensify comprehensive inspection of implementation of the land using plan/planning, land allocation, land lease, issuance of certificates of land use rights and ownership of house and other property on land, management and use of land in industrial parks, industrial clusters; projects on development of large-scale urban areas, residential areas and resorts and investment projects on land use with signs of violations against regulations on land management and use.

4. The Ministry of Finance

a) To research and send the reports to amend, supplement and issue the new law provisions to the Government in order to utilize resources, especially land resources with the aim of developing the real estate market and preventing real estate speculation by 3^rdquarter of 2019;

b) Intensify inspection of compliance with law provisions and financial policies on real estate market; continue to urge local government authorities to implement Decree No.167/2017/ND-CP dated December 31, 2017 of the Government on re-arrangement and settlement of public assets.   Strictly conduct auctions of state-owned housings/lands when re-arranging and handling public assets.

c) Take prime responsibility and coordinate  with relevant ministries in conducting research on certain financial institutions such as Housing Trust Fund and Real Estate Investment Trusts for mobilizing resources serving the real estate market and reducing dependence on funding from credit institutions.

5. The Ministry of Culture, Sports and Tourism

To issue the regulations on management and sale of condotels, resort villas in accordance with legal regulations on tourism and relevant provisions by 3^rdquarter of 2019.

6. The State Bank of Vietnam

a) To closely monitor the development and continue to flexibly manage financial policies and control credit size suitably for the macroeconomics development, and strictly control credits concerning real estate trading.  Encourage credit institutions to allocate credit capital for development projects on social housings, low-price commercial housings and housings for rent;

b) To instruct credit institutions designated by the State Bank of Vietnam to prepare a plan for making up the difference in interests and send a consolidated report to competent authorities for allocating state funding for social housing development as per provisions of the housing law;

c) To intensify inspection and supervision of credit offer for investment or trading in real estate; strictly handle violations against regulations on banking and currency;

d) To proactively cooperate with the Ministry of Justice in recovering bad debts of credit institutions and finish the building of regulatory and institutional framework, especially methods for overcoming difficulties and addressing questions during implementation of National Assembly’s Resolution No.42/2017/QH14 on pilot settlement of bad debts of credit institutions.

7. The People’s Committees of provinces and central-affiliated cities

a) To promptly and strictly comply with law provisions related to real estate market; supervise and thoroughly grasp the real estate market information and development and promptly take measures to stabilize the market and prevent real estate price escalation and property bubble in provinces; assess, make and adjust the program/plan for provincial housing development;

b) To conduct review of and make addition to the planning scheme for urban areas and industrial parks, land using plan/planning scheme, ensure that there is sufficient land fund for social housing development. When approving planning schemes for new urban areas, new industrial parks and training institution network, it is required to have regulations on planning for social housing, housing for workers and students, areas for services of education, healthcare, culture, physical education and sports under law provisions by 3^rdquarter of 2019;

c) To allocate resources in a logical manner for investment in necessary infrastructures included in or excluded from social housing projects, especially areas with large working population. Use 20% of revenues from land funds for investment in new urban area projects and commercial housing projects with the size of less than 10 ha as regulated and contributions by investors and funding from local government budget for investment in social housings;

d) To conduct inspection and review of real estate projects having investment guidance decision or approval before the effective date of this Directive, especially high-class housing projects for handling purpose. To be specific: In case of failure to implement these projects or late implementation or uncultivated land, appropriate the land as per provisions of the land law; for mid-class or high-class housing projects in stock or investor s request for conversion of apartments to common housings or social housings, complete the procedure for approving the conversion by 3^rdquarter of 2019; work out solutions for overcoming difficulties in social housing projects and average and low-price housings in provinces;

dd) Carry out inspection and review and send reports on implementation of state budget-invested student house projects and social housing projects in provinces. In case the student house project produces no positive result, send a report to the Prime Minister for permitting conversion to social housings for low-income people;

e) Allocate sufficient resources and funding for finishing the establishment and operating the information database of housings and real estate market in provinces which is connected to the database of the Ministry of Construction as specified in Decree No.117/2015/ND-CP dated November 12, 2015 of the Government;

g) To intensify inspection and strictly handle violations against regulations on real estate investment and trading; check, review and publish the list of housing projects put as bank mortgage by the investors, projects behind schedule due to legal difficulties, real estate projects including construction; non-guaranteed projects, projects on which land levy has not been paid, projects behind schedule, projects without acceptance of quality of works or fire safety department but already put into use or projects in which investors carry out the procedure for issuing certificates of land use rights and ownership of houses and other property on land behind schedule.

8. The Ministers, Heads of ministerial –level and government-attached agencies and Governmental agencies, Chairpersons of provincial People s Committees as authorized and assigned, shall thoroughly grasp this Directive and strictly organize the implementation; and send reports to the Ministry of Construction every year and once every 6 month which are consolidated and submitted to the Prime Minister.

9. The Ministry of Construction shall take charge and cooperate with relevant agencies in providing guidelines, urging and checking the implementation of this Directive and send periodic reports to the Prime Minister.

For the Prime Minister

The Deputy Prime Minister

Trinh Dinh Dung