In the report on the implementation of social housing projects in the period 2016 - 2025, the Department of Construction of Ho Chi Minh City pointed out many limitations that the City is facing.
Specifically, the work of compensation and site clearance is facing many difficulties, affecting the progress of the project. Due to the problems in this stage, many projects have even been delayed and cannot be implemented.
Besides, the type of social housing is still not diverse, small apartments with an area of 25-30 m2 in the price range of 300-400 million VND are still few, not meeting the actual demand.
Long-term capital to support investors to borrow to implement social housing projects and capital for beneficiaries of housing purchase policies is not stable. At the same time, social housing investment procedures are still complicated, so they do not attract many interested investors.
Many social housing projects in Ho Chi Minh City are facing difficulties due to many remaining problems related to procedures and legal issues.
In addition, investors must also carry out many steps to implement the project. Specifically, these are approving the investment policy, recognizing the investor, approving the detailed planning at a scale of 1/500, approving the investment, allocating land, calculating land use fees, and making deposits like commercial housing. After that, social housing projects must also conduct price appraisal, confirm home buyers, and control project profit norms...
To resolve the above-mentioned problems, the Department of Construction has proposed to allow the establishment of a specialized enterprise under Ho Chi Minh City to invest, develop and manage social housing. Previously, many opinions were sent to the General Confederation of Labor proposing the establishment of a subsidiary enterprise with the function of real estate business to implement social housing projects for workers. A similar model has just been proposed by the Department of Construction.
In addition, the Department of Construction also proposed to issue guiding documents, unifying investment procedures for housing construction in general and social housing in particular in the direction of cutting or connecting procedures, shortening the time to process documents, and costs for implementing investment and construction activities.
In addition, it is necessary to typicalize the design of social housing for mass construction, contributing to reducing implementation time, investment procedures and apartment prices. Regarding the allocation of land for social housing development in commercial projects with an area of 2-10 hectares, the Department of Construction proposed that the City People's Committee decide on 3 forms of implementation, including allocating 20% of the land fund to build social housing, transferring housing funds equivalent to the value of the 20% land fund calculated according to the land price that the investor needs to fulfill its obligations to the State to build social housing or the enterprise paying money equal to the value of the 20% land fund.
At the same time, to stabilize market supply and demand, the Department of Construction also proposed a mechanism to encourage the development of affordable commercial housing and rental housing, in order to create more housing supply for low-income people.
Phase 2 of Nguyen Son residential area is being implemented.
It is known that Ho Chi Minh City currently has 93 social housing projects with a total land area of 256.75 hectares, an expected scale of about 126,077 apartments with nearly 8.7 million m2 of construction floor. Of which, 62 projects have been approved for investment policy/investment approval with a total land area of 147.08 hectares, a scale of 68,930 apartments with more than 5 million m2 of construction floor.
However, only 19 social housing projects have been completed and put into use with a total land area of 24.67 hectares and nearly 1.2 million square meters of construction floor space, with a scale of 14,954 apartments. There are 2/19 projects that have only been partially completed, including the social housing project of Tan Phu Ward Residential Area (Thu Duc City), which put 847 apartments into use in 2019, with 363 apartments still unfinished, and the social housing project phase 2 of Nguyen Son Residential Area in Binh Hung Commune (Binh Chanh District) which has been completed and put into use 6 blocks including 1,436 apartments in 2020. Block C of this project with 242 apartments is currently under construction.
For workers' accommodation, a project has been completed and put into use with a total land area of 6.99 hectares, a scale of 1,449 rooms, and a total floor area of 80,520 m2.
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