From December 10, 2009, the Government’s Decree No 88 on granting land and house ownership certificate took effect, under which, only a single certificate will be granted to certify the land use right and house ownership of people. Before the decree validity, people still had to get two separate certificates for land use rights and homeownership, which are called “pink” and “red” books.
The decree will help simplify procedures, be more convenient and will help government agencies in management work.
Apartments not allowed to used as offices
On November 19, the Ministry of Construction released a decision on prohibiting the use of apartments as offices.
According to the ministry, the use of apartments as offices violates current laws, while negatively affecting the life of families in the same apartment blocs. The decision has met with strong opposition from businesses, especially small ones, which say they do not have budgets to lease bigoffices.
Real estate developer organizes lucky draw
On November 4, thousands of hopeful visitors crowded the sales office of the Nam Cuong Real Estate Co. on November 2-3 to register for a “lucky draw.” The prizes are the right to buy an apartment at its original price.
For the first time, the option to purchase apartments was selected by a lucky draw and in a transparent way.
Personal income tax on real estate assignment deals
Since September 26, the personal income taxation on real estate assignment deals has been implemented under the Circular No 161 by the Ministry of Finance. Tax payers will either pay 25 percent on taxable income or two percent on sales.
Local media has reported that many investors have preferred to pay two percent on sales, which allows them to reduce taxes up to 50 percent.
Despite the economic downturn in 2008, the real estate market remains very attractive to investors, especially in Hanoi and HCM City.
Real estate investors launched a lot of big projects in 2009, including Nam An KHanh, Bac An Khanh, Ecopark and Diamon Park in Hanoi, and Blooming Park, The Vista, Riverside in HCM City.
Old flats selling like hot cakes
The year 2009 witnessed a “fever attack” on old flats in advantageous positions like Giang Vo, Thanh Cong and Thai Ha areas, with the prices increasing by 2-3 billion dong per apartment.
People rush to purchase the old flats because they hear that the city’s authorities will upgrade old flats or build new apartments and the owners of the old flats will have priority to purchase them.