The Ministry of Construction is drafting the Law on Real Estate Business (amended) (hereinafter referred to as “Draft”). In the Draft, some notable provisions include:

(i)    Addition of real estate allowed to be put on the market: According to Article 5 of the Draft, such new types of real estate include condotels, resort villas and officetel.

(ii)    Additional conditions for organizations and individuals conducting real estate business: Pursuant to Article 10.1 of the Draft, in addition to amendments and supplements in order to suit the Investment Law 2020 and Decree 02/2022/ND-CP, the Draft has added 02 (two) conditions:

-    Having full capacity for legal and civil act; not being banned, suspended or temporarily suspended or not being in the process of conducting procedures for bankruptcy or dissolution of the organization;

-    In case an investor is selected is selected, recognized and assigned as the investor of a real estate project in accordance with the Law, such investor must have an equity of not less than 20% of the total investment capital for the project with a land use scale of less than 20 hectares, not less than 15% of the total investment capital for the project with a land use scale of 20 hectares or more. 

(iii)    Specifying types of residential houses and construction works allowed to be put on the market. In detail, Article 13 of the Draft provides that:

-    Available residential houses to be put on the market include all types of houses in accordance with Law on Residential Housing, except for residential houses for settlement, official residential houses and social residential houses built invested by the State using capital resources from state budget and state-owned residential houses;

-    Available construction works to be put on the market include civil works according to Law on Construction, condotels, resort villas and officetels.