In order to implement the Government's "Project of 1 million social housing units for low-income earners and industrial park workers", many localities in the Mekong Delta have allocated large land funds to build social housing, but many projects remain on paper.
Social housing project in Tan Xuyen ward, Ca Mau city under construction - Photo: T.HUYEN
Why?
Many localities said that the average price of social housing is still high, while policy beneficiaries have low incomes, so they cannot guarantee repayment plans when borrowing capital to buy social housing, affecting the progress of sales of some completed projects.
Big planning but...
Information from An Giang province said that it has planned to invest in building social housing on 143 hectares. Of which, the land fund of social housing development projects being implemented is over 81 hectares. Particularly, 4 social housing projects in operation have more than 1,900 units. It is expected that in 2025, 3 more projects will be completed.
However, some social housing projects have been delayed in starting construction due to the COVID-19 pandemic and investors are facing difficulties in capital and loan interest rates. The forecast demand for social housing by 2030 in An Giang province is 8,400 houses and the target for social housing development by 2030 is 6,300 houses.
"I saved up money to deposit to buy apartment T4 in the Golden City social housing project, but the delivery date was late, so I was very impatient," said Ms. V., living in Long Xuyen City, An Giang.
According to the investor of the "Golden City An Giang Social Housing Area" project, the expected handover time of apartments is at the end of the fourth quarter of 2024 and the beginning of the first quarter of 2025, later than the initial commitment due to the scarcity of construction materials and sand for completing the project.
"On the other hand, for nearly a year, An Giang Social Policy Bank has not been able to arrange capital to disburse to customers who borrow to buy houses, leading to many customers not paying according to the progress stated in the contract, causing financial difficulties and affecting payments to contractors to ensure project progress," the document stated.
In Kien Giang, there are 2 social housing projects but they are still unfinished. In Ca Mau, there are 15 locations planned for social housing development but only 1 project is being implemented, the remaining 14 projects are completing legal documents to prepare for investment and implementing compensation and site clearance.
"The allocation of 20% of land fund in commercial housing projects to invest in building social housing but there are no specific regulations on the time limit that investors must implement construction. Therefore, many investors "avoid and avoid", prolonging the implementation time, leading to a shortage of supply for social housing", said a representative of the Department of Construction of An Giang province.
Low investment rate, difficult to access capital?
Mr. Ma Minh Tam, Director of the Department of Construction of Ca Mau province, admitted that many social housing investment projects in the province are behind schedule because social housing investment does not bring much profit. Meanwhile, the investment process is complicated, site clearance is prolonged. Capital for social housing construction is limited, mainly depending on enterprise capital.
"Some businesses are facing difficulties in capital due to the impact of the global economic recession after the pandemic. Some businesses are hesitant and do not prioritize and boldly participate in investing in building social housing in 20% of the project's land fund," said Mr. Tam.
A leader of the Department of Construction of An Giang province said that businesses participating in the construction of social housing are facing difficulties because the investment rate set by the Ministry of Construction is low compared to the actual price of construction materials. Furthermore, the VND120,000 billion package for social housing is only valid for 5 years while the construction of a social housing apartment building takes at least 3 years.
"No social housing project can be completed in less than 3 years, while the regulation requires that it be completed before it can be opened for sale. Therefore, businesses can only borrow from the moment the project is opened for sale," said a business leader, adding that the preferential interest rate of this program is even higher than the interest rate of commercial credit loans.
In addition, to borrow preferential loans, many loan procedures must be completed, and it takes at least 6 months to disburse.
"To attract investment in social housing, we have to wait for the Ministry of Construction to adjust the investment rate and provide guidance according to the new Housing Law. The VND120,000 billion package also has to wait for the Ministry of Construction to work with banks to readjust the interest rate and loan term," said a local leader.
An Giang supports each project with 4.5 billion VND
Resolution 12/2024 of the An Giang Provincial People's Council has agreed to regulate the mechanism to support investment projects to build social housing in the area.
Specifically, 100% support for fees and charges for administrative procedures related to social housing investment projects; allocation of clean land for social housing projects not falling under the prescribed cases.
The locality supports 50% of the investment cost for building technical infrastructure systems within the scope of social housing projects, based on approved design estimates, but not exceeding 4.5 billion VND/project.
Source: https://tuoitre.vn/dau-tu-nha-o-xa-hoi-o-dong-bang-song-cuu-long-quy-dat-lon-nha-van-tren-giay-2024111823220002.htm
Comment (0)