Investors of foreign-investment housing projects, who have not handed over the units to the buyers, will not be allowed to collect more than half of the apartment’s value.This is part of a draft regulation of the construction ministry – prepared on the basis of the law on the real estate business – that is now inviting public opinion.
Under the draft, the payments for renting or buying apartments in future real estate projects can be made several times, but the first payment cannot exceed 30 per cent of the contract’s value.
The payments that follow must be made in line with the progress of the project’s construction, and must not surpass 70 per cent of the contract’s value if the apartments have not been handed over to buyers.
In case the home buyers have not been granted land or house ownership certificates, the investors will not be allowed to collect more than 95 per cent of the contract value from them.
The remaining fee will be paid by buyers after they get the land or house ownership certificates from authorised agencies, according to the draft.
According to the planning and investment ministry, the real estate sector attracted US$2.54 billion in foreign direct investment (FDI) last year, accounting for 12.6 per cent of the country’s total registered FDI capital.