PROPOSAL TO SEPARATE INTERSPERSED PUBLIC LAND IN COMMERCIAL HOUSING PROJECTS FOR AUCTION

What conditions would allow public land to be separated into an independent project?

Under the proposed framework, a State-managed land parcel would first need to be consistent with an approved construction plan or land-use plan. The site must also be free from unresolved disputes, complaints, or violations.

Another notable requirement concerns connectivity with the road network. The land parcel would need to have at least one side adjoining an existing or planned road with a total right-of-way of at least 10.5 meters. The frontage of the land parcel along that road would also need to be at least 10.5 meters.

Regarding size, the draft proposes different minimum areas depending on the location and planning characteristics. In urban areas, the proposed minimum area would be 500 sq m for low-rise planned areas and 1,000 sq m for high-rise planned areas. Outside urban areas, the corresponding minimum areas would be 1,000 sq m and 2,000 sq m.

In addition to the minimum area, the public land would also need to account for a certain proportion of the overall project area. The proposed thresholds are at least 5% in urban areas and 10% in non-urban areas.

For projects that have previously been allocated or leased land but later propose an expansion, the ratio would be calculated based on the expanded area rather than the entire project.

Auction or investor selection may be considered

The possibility of separating public land would be assessed during the appraisal of the investment policy or when an existing project proposes an adjustment to its investment policy.

For projects whose investment policies have already been approved but which have not yet completed land allocation or leasing procedures, relevant authorities would review the projects and submit them to the Ho Chi Minh City People's Committee for case-by-case consideration.

If the public land meets all requirements to become an independent project, the relevant authority would propose allocating or leasing the land through land-use rights auctions or bidding to select an investor, in accordance with applicable regulations.

If the land does not meet the conditions for separate development, it could instead be recovered and subsequently allocated or leased to the investor under the applicable legal framework.

Addressing obstacles caused by interspersed public land

Establishing clear criteria for handling interspersed public land is expected to help resolve one of the legal bottlenecks affecting the real estate market.

According to the Ho Chi Minh City Real Estate Association (HoREA), before the merger, around 126 commercial housing projects in Ho Chi Minh City faced delays or suspension because of difficulties involving interspersed public land, even though such land accounted for less than 10% of the project area in many cases.

If finalized and adopted, the proposed mechanism could provide a clearer basis for classifying and handling State-managed land within commercial housing projects. Separating eligible land parcels could also create opportunities to put land resources to more effective use through auctions or investor selection, while helping accelerate the implementation of stalled projects.