From March 1, 2022, the Law amending and supplementing a number of articles of the Law on Public Investment, the Law on Investment in the form of public-private partnership, the Law on Investment, the Law on Housing, the Law on Bidding, the Law on Electricity Law on Enterprises, Law on Special Consumption Tax and Law on Execution of Civil Judgments No. 03/2022/QH15 (“Law No. 03”) officially took effect. Regarding the amendments to the Law on Housing, the revised regulations have clarified the form of land use for investment in commercial housing projects.
Specifically, Article 4 of the Law No. 03 amending Article 23.1 of the Law on Housing clearly stipulates that investors must have lawful land use rights for (1) residential land, or (2) residential and non-residential land, which meets the conditions for the change of land use purpose, and at the same time, the use of land for the implementation of investment projects on construction of commercial housing must be consistent with the land use policy approved by a competent state agency in accordance with the law on land.
After obtaining the approval of the investment policy and the investor for the commercial housing project, the investor is responsible for carrying out the procedure for changing the land use purpose and related financial obligations as prescribed by the land law.
Therefore, in cases where the investor only has non-residential or mixed with residential land that has yet been permitted by the Law to be converted into commercial housing projects even though the project land is suitable for the land use policy.
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