Recently, Ho Chi Minh City (HCMC) People's Committee has sent a dispatch to the Prime Minister on considering and resolving inadequacies in real estate transactions.
One of the noteworthy proposals is that the Central Government should assign the Ministry of Construction to issue regulations that requirs property developers to publicly announce information about real estate projects that will be formed in the future at the People's Committees of districts where the project is implemented.
Accordingly, for developers who violate these regulations, HCMC government proposed additional administrative sanctions including "suspending real estate business operations for up to 12 months", among others.
Regarding the above proposal, leader of a business that has developed many real estate projects in Hanoi told Infonet’s reporter that allowing sales of off-plan houses is an "openness" of the law, creating favorable conditions for developers to recover capital earlier, benefiting both the real estate market in general and developers. However, the implementation process has seen some developers that do not seriously comply with the regulations.
"HCMC government’s proposal is right; we need to publicize the necessary legal documents so that home buyers know the project is eligible to be implemented. However, but if all documents of the project are publicly available, it will be difficult for businesses. The policy makers need to consider the wording so that the guiding documents for implementing the new rules are clearly issued and properly instructed,” he said.
Although admitting that the above proposal is needed to punish violating enterprises, Nguyen Van Duc, deputy director of Dat Lanh Real Estate Company, said "suspending business activities of real estate firms for up to 12 months" means strangulating the firms.
