Regulations on execution of residential real estate investment and construction projects under the Law on Housing 2023

Regulations on execution of residential real estate investment and construction projects under the Law on Housing 2023 (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Regulations on execution of residential real estate investment and construction projects under the Law on Housing 2023

According to Article 37 of the Law on Housing 2023 (taking effect on January 1, 2025), regulations on implementation of commercial housing construction investment projects are as follows:

- Execution of residential real estate investment and construction projects shall conform to this Law, construction laws, and other relevant law provisions.

- Developers of housing investment and construction projects shall build houses and technical infrastructures, social infrastructures according to planning and details, progress of approved projects; or carry out construction work corresponding ton approved investment phase if projects involve multiple investment phases.

- In regard to technical infrastructures and social infrastructures to be transferred to the government or local authority for management in accordance with approved investment guidelines and/or project details, the transfer shall be implemented as soon as construction process is completed; agencies and organizations receiving the transfer are responsible for managing, maintaining, operating, and using in accordance with approved purpose and functionality.

In regard to technical infrastructures and social infrastructures invested by the Government, organizations assigned to carry out investment and construction of technical infrastructures and social infrastructures shall conform to approved project schedule.

- The hand-over of houses to buyers, buyer/tenant shall only be done when house commissioning in accordance with approved design and technical infrastructure commissioning of the area have been carried out in accordance with approved project schedule.

If developers of housing investment and construction projects are required to build social infrastructures to serve accommodation demands according to investment guidelines, they shall complete construction process and carry out commissioning in accordance with approved schedule prior to handing over the houses. In case of hand-over of partially constructed houses, the entire exterior of these houses shall be completed.

In case of hand-over of apartment buildings, project developers shall obtain adequate documents on property handover according to regulations of the Government.

- Commissioning of houses, technical infrastructures, and social infrastructures in projects shall conform to construction laws.

2. Who are the developers of residential real estate development projects in Vietnam?

Developers of residential real estate development projects are regulated in Article 36 of the Law on Housing 2023 as follows:

- Developers of residential real estate development projects shall be real estate enterprises satisfying requirements as follows:

+ Have equity in accordance with real estate trading laws for implementation of each housing investment and construction law; and

+ Have sufficient capacity and experience in executing housing investment and construction projects as per the law.

And falling under any of the following cases:

- Real estate enterprises assigned with land or leasing land as a result of winning land use right auction or winning bid for selection of contractors for projects that involve land use; or otherwise accepted as investors when organizing auction, bidding in accordance with investment laws.

- Real estate enterprises having approved investment guidelines and accepted as developers of residential real estate development projects when the investors obtain land use right via agreement on acceptance of land use right in regard to type of land on which residential real estate investment and construction projects are allowed or are having land use right in regard to type of land on which residential real estate investment and construction projects are allowed according to Land Law 2013.

Nguyen Ngoc Que Anh

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