Vietnam Real Estate Association “offers” to develop social housing

According to the Vietnam Real Estate Association, the demand for affordable housing, social housing currently accounts for about 80% but the supply is very lacking. Since then, this unit outlined 4 solutions to address this situation.

At the Workshop: Greening the affordable housing segment: Costs and benefits, Mr. Do Viet Chien, General Secretary of the Vietnam Real Estate Association (VNREA), identified public housing, affordable housing or Affordable housing is a segment that has been mentioned a lot in the past 3 years, because the real demand of customers is always over 80%.

Mr. Chien cited the data, showing that the housing demand of people in the middle and high-end segment (prices from VND 25 million/m2 or more) accounts for only 20 - 30% of the market demand and is concentrated mainly in the big urban. Meanwhile, the demand for social housing, affordable housing (prices under 25 million VND/m2) accounts for 70-80% but the supply is very lacking.

From there, the prospect of the low-price housing market in the long-term is assessed as having good movements. Recently, some real estate developers have actively changed or adjusted their business strategies by investing in affordable apartments. "However, the segment of social housing currently does not meet the needs of society" said Chien.

Mr. Do Viet Chien, General Secretary of VNREA. Photo: Reatimes.

The reason, according to Mr. Chien, comes from the benefits of businesses when participating in the construction of affordable housing, social housing is not attractive enough, the legal documents are not synchronized, causing a shortage of land fund; No new funding has been created. From there, VNREA representatives proposed 4 solutions to develop the social housing segment.

Firstly, in terms of capital to support the development of social housing and low-cost commercial housing, the State needs to quickly provide financial support, possibly through another supporting credit package, or establishing a private investment fund for social housing development... in order to create opportunities for businesses as well as buyers after the VND 30,000 billion credit package ends at the end of March 2016.

Secondly, regarding the land fund to develop social housing, according to VNREA representative, although the housing law specifies the 20% of the land fund has been invested in infrastructure to invest in building social housing. However, the actual implementation is limited. From there, VNREA proposed the Prime Minister and the Ministry of Construction to direct localities to review urban planning to determine specific locations and land areas to develop each type of housing, especially social housing and commercial housing at a reasonable rate in accordance with the housing law.

Thirdly, on administrative procedure reform, according to VNREA, it is necessary to review and reform administrative procedures in the field of investment, architectural planning, land management, granting construction permits, creating favorable conditions to support investors to complete administrative procedures to shorten the time of putting projects into investment in business and construction.

Fourthly, to invest, develop rapidly and synchronously the infrastructure system, it is necessary to focus on developing the transport system connecting suburban areas with each other and with the city center. Promoting the development of urban infrastructure and services in these areas creates favorable conditions for people living in housing projects far from the center.

According to Lam Tung