Although there have been many correct policies on social housing development, low-income people may still need time to realize their dream of affordable housing.
The Government has just issued Decree No. 100/2024/ND-CP detailing a number of articles of the Housing Law on development and management. social housing. The Decree officially takes effect from August 1, 2024.
This Decree is said to have “relaxed” many regulations and conditions on housing and income for those who buy social housing. According to regulations, the conditions for enjoying social housing support policies include housing conditions and income conditions, low-income people in urban areas; workers and laborers working at enterprises, cooperatives, and cooperative unions inside and outside industrial zones; cadres, civil servants, and public employees according to the provisions of the law on cadres, civil servants, and public employees must ensure the following income conditions:
In case the applicant is single, the actual monthly income received must not exceed 15 million VND/month, calculated according to the salary and wage table confirmed by the agency, unit, or enterprise where the applicant works. The time to determine the income condition is within 1 consecutive year, calculated from the time the applicant specified above submits a valid application to the investor to register to buy or rent-purchase social housing.
In case the applicant is married according to the provisions of law, the applicant and his/her spouse must have a total monthly income of no more than 30 million VND calculated according to the Salary and Wage Table confirmed by the agency, unit, or enterprise where the applicant works. The time to determine the income condition is within 1 consecutive year, calculated from the time the above-mentioned subject submits a valid application to the investor to register to buy or lease-purchase social housing.
Decree No. 100/2024/ND-CP is expected to contribute to realizing the dream of owning a house for many low-income people. However, whether low-income people can access social housing funds or not is a matter that needs to be discussed. First of all, currently in localities, social housing projects are being implemented and planned for investment and construction are very small. In most big cities such as Hanoi and Ho Chi Minh City, social housing projects are only on the fingertips. The situation of supply not meeting demand has been going on for many years.
Not to mention, when a social housing project is implemented and enters the stage of reviewing applications for renting, renting, and buying social housing, there are many controversies such as: "Brokers" illegally advertising and selling social housing, inflating apartment prices, or stories of rich people driving cars to buy social housing... And in reality, affordable housing is still just a distant dream for many low-income people.
Many real estate experts also believe that in order for workers to have access to social housing, the selling price must be reduced to a more suitable level. In addition, it is necessary to expand the support target to people with incomes higher than 15 million VND/month. At the same time, local authorities need to monitor, inspect and strictly handle investors and brokerage floors that advertise and sell social housing in violation of regulations. Especially the stage of appraisal and approval of social housing purchase applications, so that low-cost housing reaches the right target, which is low-income people.
Talking about the issue of social housing development, Mr. Do Viet Chien - Vice President of the Association Real estate Vietnam analyzes that currently the demand for social housing, housing for workers in industrial zones and low-income housing is very large. In addition, many localities have paid attention to and arranged land funds for social housing development according to the provisions of the law. Investors are given incentives for land rent, land use, and tax reductions so that they can quickly recover capital and make a profit when participating in the construction of social housing...
“ However, up to now, social housing investment enterprises implementing projects still face many difficulties and obstacles in accessing land such as project publicity, land fund planning; capital sources and credit access; administrative procedures in selecting investors, construction investment, approving house selling prices …”, Mr. Chien commented.
According to Mr. Chien, to remove difficulties for businesses and promote the development of social housing projects, first of all, ministries, branches and localities need to fully implement the Prime Minister's direction on developing social housing in the project to build 1 million social houses by 2030. Continue to review and closely follow reality to solve difficulties for investors.
Along with that, it is necessary to soon form a social housing investment fund with the ultimate goal of solving the problem of supply-demand imbalance to soon stabilize the market and continue to develop this type of housing. In addition, Mr. Chien also said that localities need to adjust housing development programs and plans, specifically on the quantity and targets of social housing for 2024-2025 and publicize the list of independent social housing investment projects for investors to register...
It can be seen that although there have been many correct policies and guidelines on social housing development, the implementation process still faces many difficulties and obstacles that are creating barriers that prevent businesses from creating a real "wave" in the social housing segment and low-income people may have to wait for their dream of owning affordable housing to come true.
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