One of petitions relate to housing projects that have been built in mixed-use land parcels which some of land parcels are farmlands.
According to a report of the city People’s Committee, in 2019, realty estate companies faced different difficulties and house supply has shrunken; therefore, property enterprises’ revenue and earnings fell dramatically.
Additionally, according to the Ministry of Planning and Investment, 598 realty companies stopped operation while 686 others dissolved in 2019.
In two years 2018 and 2019, realty growth was lower than the city general development. Realty estate’s proportion in the city Gross Regional Domestic Product tended to decline from 7.3 percent to 4.1 percent leading to drop in construction sector.
In 2019, the city People’s Committee approved and recognized just four housing projects with legal documents and approved investment of 16 commercial housing projects.
One of reasons for the drop in investment in realty estate is discrepancy in regulations of investment, housing and land planning. Without timely resolutions, it will result in a drop in the government’s budget collection from realty estate investment.
Regarding 158 housing projects getting stuck due to linking with public land, Chairman of the Ho Chi Minh City Real Estate Association (HOREA) Le Hoang Chau said at a meeting in early 2020 that city authorities allowed 158 projects to re-start; yet, many of them have not begun again.
The city proposed two solutions to remove present barriers. For the public land with area under 1,000 square meters mixing with farmland or lakes, the Prime Minister should give it to investors for housing projects.
For the public land over 1,000 square meters, the PM should allow HCMC to exchange another land for investors.
The city also petitioned the PM to remove regulations that investors are just allowed to build projects on totally legal land because presently 63 projects have got stuck due to the regulation.