Social housing prices have never been as cheap as they are now.

Compared to the inflation rate and commercial housing prices, Mr. Truong Anh Tuan, Chairman of Hoang Quan Group, acknowledged that social housing prices have never been as cheap as they are now.

Chairman of Hoang Quan Group: Social housing prices have never been as cheap as they are now.

Compared to the inflation rate and commercial housing prices, Mr. Truong Anh Tuan, Chairman of Hoang Quan Group, acknowledged that social housing prices have never been as cheap as they are now.

Three factors that help customers buy social housing

On November 17, Hoang Quan Group organized the event "For 1 Million Vietnamese Family Homes" and launched Hoang Quan Land Company.

Mr. Truong Anh Tuan, Chairman of the Board of Directors of Hoang Quan Group, said that Hoang Quan, like many other social housing developers, uses many different sources of capital, diversifies products such as industrial parks, luxury housing, commercial housing and affordable housing, but more than 50% will focus on developing social housing.

In order for customers to be able to buy social housing, Mr. Tuan pointed out 3 main factors. Firstly, the current State policy mechanism is very good; secondly, regarding capital, there is a support package of 120,000 billion VND and bank loan interest rates are also at a low level; and the third factor is that customers need to save and work harder. If they can do this, people in the target group will no longer have too much difficulty buying and owning social housing.

“In general, compared to the level of inflation and commercial projects, the actual price of social housing has never been as cheap as it is now,” Mr. Tuan emphasized.

Mr. Truong Anh Tuan, Chairman of the Board of Directors of Hoang Quan Group spoke at the event.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) acknowledged that social housing has never been mentioned so frequently and received such great attention from society as it does today.

“The social housing policy in the Housing Law 2023 is the best policy we have built up to now,” he said, adding that the Politburo’s conclusions were later issued by the Government as a program of at least 1 million social housing units. Hoang Quan Group registered 50,000 social housing units. The policy and practical actions have brought confidence that low-income people will soon have access to social housing through the target program.

However, according to statistics from the Ministry of Construction, up to now, nationwide, the program has only been implemented 10%, of which less than 2% in Ho Chi Minh City. Thus, we must make more efforts, along with more determination to eliminate thatched houses, temporary houses, and dilapidated houses.

“These are very humane programs, touching the hearts of Vietnamese people, touching the things we dream of. The dream is to settle down. The dream of accessing housing according to the Constitution. However, when implementing in practice, there are still many concerns such as the interest rate prescribed for social housing buyers is currently higher than the normal commercial interest rate that commercial sectors are currently lending short-term. We also hope that the social policy bank can reconsider so that home buyers can access this policy better and more effectively,” Mr. Chau suggested.

From the perspective of a home buyer, Master Tran Hoang Nam, University of Economics and Finance, Ho Chi Minh City, assessed that according to the new regulations, he can still buy social housing in Binh Duong in Ho Chi Minh City, and the downward trend in interest rates is also a certain advantage.

The important issue now is how to choose a location to build social housing that is suitable for the needs of buyers. Because buying a house is not just buying the space inside, but they are buying the whole ecosystem to stabilize their lives. If social housing projects are in unfavorable locations, have poor social connections, poor social and educational infrastructure, etc., they will not attract buyers.

The policy is open, but there are still obstacles.

Mr. Ha Quang Hung, Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) said that Vietnam currently has two main trends in housing development policies.

Firstly, commercial housing is implemented according to commercial mechanisms for those who can buy, sell, and arrange their own accommodation.

Legal experts say that the law has so far resolved many previous problems related to investment and lease-purchase of social housing.

The second legal stream is the social housing policy for low-income people who have difficulty finding housing for themselves and need support from the State. The support here includes indirect support through investors who are enterprises investing in social housing projects and the second is direct support for those who are buyers, renters, and renters of social housing.

These policies have been implemented and appeared in the Housing Law of 2005. However, they have been raised to a higher level in Resolution No. 18 of 2009 of the Government, and then in 3 decisions No. 65, 66 and 67 on policies to invest in building housing for low-income people in urban areas, investing in housing for industrial park workers and investing in dormitories for university and college students.

By 2015, there was a more comprehensive social housing policy in the 2015 Housing Law, and it has now been amended and supplemented in the 2023 Housing Law.

It is noteworthy that the previous Law stipulated that the subjects of social housing in urban areas were only residents in urban areas. But in reality, many residents in suburban areas, although still in rural areas, actually live and work in urban areas.

Therefore, the Housing Law 2023 has provisions allowing localities, in addition to the subjects prescribed by law, to stipulate that poor households and near-poor households living in rural areas can enjoy social housing policies in urban areas.

Sharing the same view, Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), assessed that in the past, social housing development faced many difficulties and obstacles due to major bottlenecks, focusing on 5 factors: land fund, procedures, mechanisms, capital and market output. Of which, the 4 groups of procedures, mechanisms, capital and even market output, the provisions of the law have almost completely loosened the constraints.

Capital is also one of the issues that the Government has taken drastic action on, especially the State Bank has also stepped in with a 120,000 billion VND package and has increased by more than 140,000 billion VND. However, there are still some issues with interest rates, there are still some concerns, especially for home buyers, those who have little ability to pay, especially the interest cost with a rather limited salary.

Regarding output, the Policy has paid special attention to cadres, civil servants, wage earners, workers and laborers in industrial zones. It can be said that it has expanded very strongly. Mr. Dinh said that these 4 groups have basically been handled.

Regarding land funds, the Government has also stepped in and directed local authorities to cooperate. Some enterprises in the association still have difficulty accessing land funds. Especially the issue of government response. This may still create bottlenecks even though the policy is very good and very suitable for the majority of the population.

“We need to push harder, especially local authorities, because in many places, businesses still face barriers when approaching, especially regulations and procedures to guide implementation, which are still somewhat confusing in some places. Therefore, there needs to be stronger regulations from the Government for localities regarding responsibilities, perhaps it should be a mandatory task,” Mr. Dinh suggested.

Source: https://baodautu.vn/batdongsan/chu-cich-tap-doan-hoang-quan-chua-bao-gio-gia-nha-o-xa-hoi-re-nhu-bay-gio-d230259.html