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The ministry explained that Decree 90, which took effect four years ago, was replaced with Decree 71.
The new decree contains detailed regulations covering different sectors in the local property
|A new apartment building in Phu My Hung Area in HCM City. New housing policies on residential real-estate transactions were introduced to housing companies at a conference yesterday. — Photo Van Khanh|
market, and guides the implementation of the Law on Housing, according to Nguyen Trong Ninh, deputy director of the Housing and Real Estate Market Management Department.
In addition, Circular No 16 issued by the Ministry of Construction provides detailed guidelines for the implementation of Decree 71 regarding residential real estate transactions. The circular came into effect October 16.
Decree 71 contains regulations on the selection of developers, the appraisal and approval process of housing, commercial housing, individual housing, social housing projects and housing projects for public employees.
It also describes ways that project developers can raise capital for their projects.
Unlike the previous decree that contained vague language, the new decree allows developers to raise capital from banks, credit institutions, investment funds, corporate bonds, secondary investors and other organisations or individuals.
Under Decree 71, housing developers will be permitted to sell in advance a maximum of 20 per cent of the total number of apartments in a property project before finishing the foundation of the building.
The remaining sales must be traded via property exchange floors when the projects' foundations are completed.
The decree also outlines regulations and preferential policies for investors who develop social housing projects.
The aim is to encourage them to develop more housing projects and meet the housing demand of low-income earners.
In addition, Decree 71 has detailed guidance concerning housing transactions of Vietnamese residing abroad and of foreigners leasing houses in Viet Nam.
Regulations in previous decrees on housing policies that conflict with the new decree are no longer valid, according to Ninh.
Housing proposals submitted before August 8, the effective date of Decree 71, to provincial governments will be considered in several ways, he explained.
If the project has fewer than 2,500 apartments and is being built with State funds, the provincial People's Committee will make a decision based on Decree 90.
If it is being built with non-State funds, the local authority can issue an investment approval document to developers without asking them to submit a statement again.
If the project proposal has more than 2,500 apartments but does not mention investment sources, the provincial authority must send a statement to the Government for approval before it is turned over to the provincial government for final approval.