A land plot in Binh Phuoc Province that is leveled and divided into smaller plots for sale. The Government’s Decree No. 148 has tightened regulations on land sub-division - PHOTO: VNA

HCMC - Decree No. 148/2020/ND-CP of the Government, which came into force on February 8, 2021, has further restricted the division of land into smaller plots for sale by expanding the areas where the sub-division of land is not allowed.

By expanding the scope and tightening regulations on land sub-division, Decree No. 148, which contains amendments and supplements to several decrees and provides detailed regulations on the implementation of the Law on Land, is aimed at preventing land speculation and unstable urban development.

Doan Thi Thanh My, deputy director of the General Department of Land Administration under the Ministry of Natural Resources and Environment, said Article 41 of Decree No. 43 dated July 1, 2014, banned investors from dividing land into smaller plots for sale in the inner districts of the two special-level cities of Hanoi and HCMC only.

Decree No. 148 now regulates that the sub-division of land is prohibited in the inner districts of not only Hanoi and HCMC but also level-one cities including Danang, Haiphong and Can Tho.

Moreover, before a project is implemented, the provincial People’s Committees have to publish areas where the sub-division of land is permitted.

According to Le Hoang Chau, chairman of the HCMC Real Estate Association, the sub-division of land plots has resulted in land speculation and construction of housing projects and urban areas that are not consistent with urban plans.

Chau said stricter restriction over the sub-division of land plots will ensure benefits for customers and sustainable urban development without adversely affecting the real estate market.