Ministry of Construction proposes to increase profit from social housing construction from 10% to 13%

The Ministry of Construction is seeking opinions on a draft Resolution to pilot a number of specific mechanisms and policies for social housing development to submit to the National Assembly for approval.

In this draft, the Ministry of Construction proposes to raise the profit margin for investors implementing social housing projects to 13% of the total project construction cost. Investors will base this profit margin on the price list for selling, leasing and renting social housing.

Currently, investors in social housing projects are limited to a profit margin of 10%. However, many businesses and experts believe that this profit margin is not attractive enough, and if prices fall, businesses will even lose money.

The Ministry of Construction proposed increasing the profit from social housing construction from 10% to 13%. (Photo: ST)

Previously, the Ho Chi Minh City Real Estate Association proposed that the Government consider increasing the profit margin for social housing project investors to 15%. The Hanoi Department of Construction also proposed increasing this profit margin to 15-20%.

According to the Project to develop 1 million social housing units by 2030, the country will develop 130,000 units by 2024. However, a report from the Ministry of Construction shows that despite efforts, localities have only completed 21,000 units, equivalent to more than 16% of the plan.

From 2021 to present, the whole country has 644 social housing projects implemented with a scale of 580,109 units. Of which, only 96 projects have been completed with a scale of more than 57,620 units; 133 projects have started construction with over 110,200 units. There are 415 projects that have been approved for investment policies, which will provide more than 412,200 units.

In the period of 2025 - 2030, the Prime Minister assigned the task of completing more than 995,000 apartments nationwide. Of which, Hanoi must complete nearly 45,000 apartments, and Ho Chi Minh City about 67,000 apartments.

Dinh Tran