Property developers doubt effectiveness of new decree

A Government decree which provides sanctions against violations in the property sector has been in force since early this month, but property developers and traders have cast doubt on whether the decree can be as effective as expected.

Decree 23/2009-ND-CP imposes fines of VND60 million to VND70 million on companies and individuals who sell or lease their properties without registering with approved trading centers. This decree is designed for local property authorities to effectively supervise the local real estate market which has been going unchecked, thus affecting tax revenues.

However, many in the sector have discredited whether the rule could translate into reality because of its vague regulations.

Tran Minh Hoang, board chairman of Vinaland Investment Corporation, a property service provider, told the Daily on Monday that it would be hard to apply the decree in reality due to lack of specifics.

Property developers, Hoang said, sell their apartments in different phases in line wit the progress of which their projects and many project developers even put up their apartments for sale before completion.

Therefore, there are projects whose products were already sold before the date of the decree coming into effect but the sale will continue in the coming phases of construction, he said, adding this would prove to be tough to handle.

The Ministry of Construction also ordered property developers to sell their products via recognized trading centers early this year, but this seems to be unworkable.

There is a simpler way of forcing developers to bring their products to trading centers, said Hoang of Vinaland Investment. The authorities should require developers to announce their apartment sale programs and report them to the local construction department, he said.

This way will enable the department to get updates about projects and uncover any violations.

"Such supervision is simple," Hoang said, and it will also play a proactive part for project developers, instead of requiring them to sell their products via trading centers.

VietNamNet, SGT

>   Fish sauce makers seek to protect name (07/05/2009)

>   Record growth for WatchGuard Technologies (07/05/2009)

>   Incentive packages attract investors to Delta province (07/05/2009)

>   Fears over rising steel prices (07/05/2009)

>   Law changes spur reforms (07/05/2009)

>   Foreign giants dominate fast food market (07/05/2009)

>   Dien Bien Phu set to boost economic growth (07/05/2009)

>   Phu My Fertilisers to train Ca Mau staff (07/05/2009)

>   National economy keeps up momentum in second quarter (07/05/2009)

>   PM allocates US$160 million for urban face-lift (07/05/2009)