According to the Department of Construction of Binh Dinh province, social housing projects currently have about 600 units in inventory, with an average of only 350 units sold in 2024. This causes investors to slow down progress and not dare to invest.
According to the Department of Construction of Binh Dinh province, social housing projects currently have about 600 units in inventory, with an average of only 350 units sold in 2024. This causes investors to slow down progress and not dare to invest.
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According to the social housing development plan for 2025, Binh Dinh plans to build 742 units, nearly half of the 1,400 units in 2024. Mr. Tran Viet Bao, Director of the Department of Construction of Binh Dinh province, said that for social housing projects that have selected investors, the current "difficulty" for investors is investment capital.
Mr. Bao mentioned that, according to the investor selection, the investor only needs to have 20% of the owner's capital to ensure the enterprise is selected, the rest is allowed to borrow. "However, borrowing capital is not simple now even though the Government has a credit package of 120,000 billion VND for lending," Mr. Bao said.
Explaining further, Mr. Bao said that at the time of the policy issuance, the loan interest rate was still very high compared to commercial loans. Along with that, the conditions for borrowing were not as simple as before, the investor had to have collateral, so the investors were "stuck with capital so they did not dare to invest to construct according to plan".
Another reason affecting the plan is product output. According to the Department of Construction of Binh Dinh province, in the period of 2020 - 2021, social demand increased rapidly because of high land prices, so many people registered to buy apartments; there was a case where the investor sold 100 apartments but had 300 registrations.
But according to statistics from the Department of Construction of Binh Dinh province, the projects have about 600 units in inventory, with an average of only 350 units sold in 2024. This is also the reason why investors are slowing down progress and not daring to invest.
Mr. Bao hopes that the new Housing Law will regulate the subjects of social housing more liberally, so that the number of people buying social housing will increase. At the same time, regarding the price, the Department of Construction will also try to control it at 12 million VND/m2 to attract buyers.
The Department of Construction is trying to count the number of projects that can be completed. The Director of this Department affirmed that the long-term plan is basically guaranteed, but the short-term plan for the year, the Department of Construction only registered at 50%.
“Looking back at the projects that have been implemented, investors are all stuck with capital and output,” Mr. Bao concluded.
Provincial Party Secretary Ho Quoc Dung said that the social housing plan has decreased while the demand for social housing has increased very high in the past, so "this is a contradiction"; before, for every 1 house, 3 people registered, but now for every 3 houses, 1 person registers.
"Why is it that the same people and population had high demand before but now have no demand, proving that our social housing policy is inadequate?", the Secretary of Binh Dinh Provincial Party Committee asked.
There is a surplus situation, the Secretary of Binh Dinh Provincial Party Committee is worried about whether the demand for social housing in the province still exists or not, if not, then we have to recalculate. Mr. Dung affirmed that there is still demand and we have to think again about what people bought it for in the past.
The Secretary of the Binh Dinh Provincial Party Committee said that buying social housing involves speculation when people borrow names and ages to buy social housing when social housing is hot. Buying social housing for 500-600 million, transferring the name can also earn 1-2 hundred million, so even in Hanoi people still buy.
“Businesses do whatever is profitable, and when they make and sell everything, they will have capital right away. Now, if businesses cannot sell, they say it is difficult to borrow capital and the time and progress are slow; in the past, banks also gave loans, but who would give loans?”, the Secretary of Binh Dinh Provincial Party Committee requested the Department of Construction to re-examine.
Mr. Pham Anh Tuan, Chairman of Binh Dinh Provincial People's Committee, said that by 2030, the Government assigned Binh Dinh province a target of 12,900 social housing units. To date, the number of licenses and projects that the province has granted and approved is about 15,000 units; by 2025, the province will complete over 5,000 units.
The Chairman of Binh Dinh province admitted that, after a recent inspection, demand is currently slowing down, "going down very quickly, it's all gone, there are too few new people coming in."
However, Mr. Tuan also believes that in the coming time, when projects explode, Binh Dinh will ensure and even exceed its targets.
Regarding the 2025 target, Mr. Tuan said that the province must balance to ensure that investors can sell the completed construction in principle, avoiding the situation where social housing is not used if left for too long, and if there is too much, it will be a waste.
Source: https://baodautu.vn/batdongsan/binh-dinh-dang-ton-kho-khoang-600-can-nha-o-xa-hoi-d232300.html
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