TPO - Resolution 171/2024 opens up additional mechanisms for businesses to use agricultural land and non-agricultural land (excluding residential land) to develop commercial housing, thereby removing one of the major bottlenecks in the real estate market. Accordingly, the market will have the opportunity to improve the balance between supply and demand.
Speaking with a reporter from Tien Phong newspaper, Dr. Su Ngoc Khuong - Senior Director of Investment at Savills Vietnam - analyzed that over the years, many businesses have acquired land suitable for urban development but have been unable to implement commercial housing projects due to regulations on land type.
Resolution 171/2024, effective from April 1, 2025, with a five-year pilot program, is considered a significant step forward. This mechanism allows certain commercial housing projects to be considered for implementation on land that businesses already own or acquire through land use rights transfer , including agricultural land, non-agricultural land other than residential land, and mixed-use land.
According to Mr. Khuong, the impact of Resolution 171 could occur in two ways: reopening the legal framework for stalled land projects and creating more opportunities for new projects.
In particular, in areas outside the city center with remaining development potential, incorporating suitable land into the investment cycle could expand the space for housing development, creating a foundation for a more diverse supply.
However, the pilot mechanism does not mean that businesses are free to convert all types of land to residential land for commercial housing development. The land included in the investment cycle must be located in urban areas or areas planned for urban development, in accordance with the housing development plan and program, and must be listed in the pilot land list approved by the provincial People's Council.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that after nearly two years of implementation, only 742 land plots nationwide have been approved out of a total of 2,750 registered applications. In Ho Chi Minh City alone, the authorities received 974 applications...
According to Dr. Su Ngoc Khuong, expanding access to land is a crucial prerequisite for the real estate market to have more projects and products in various areas and segments. When businesses have more options regarding project scale, type, and location, the market will have the opportunity to improve the balance between supply and demand. This is also a significant factor for homebuyers.
In recent times, the supply of real estate in many major cities has remained largely concentrated in the mid- and high-end segments, while affordable housing for the majority of the population remains limited. If these stagnant land plots are transformed into projects, buyers could have more choices in terms of location and type of housing.
However, Mr. Khuong noted that expanding land reserves should not be equated with the immediate availability of affordable housing. Resolution 171 does not directly determine selling prices or product segments. The ability to develop housing that matches people's incomes also depends on land costs, financial obligations, capital costs, etc.
In particular, not all land plots have the potential to be converted into housing supply at the same pace. Projects with favorable locations, good infrastructure connections, and compliance with planning…
