List of projects in the East of Hanoi that will be launched at the end of the year, apartments dominate the Binh Duong market

Proposal to implement social housing incentive package from bond capital, series of projects launched at the end of the year, apartment buildings continue to dominate the Binh Duong market... are the latest real estate news.

Latest real estate: In the final months of 2024, the East is dominating the West of the capital in terms of new apartment supply. (Source: DN&TT)

Proposal to implement social housing incentive package from bond capital

In the draft Resolution on preferential capital for social housing development, which is being consulted with ministries and branches before being submitted to the Government for promulgation, the Ministry of Construction has proposed implementing a preferential package of VND100,000 billion for social housing loans from bond capital, applicable for 5 years. This is the first time the Ministry of Construction has proposed applying a preferential package for social housing by issuing bonds.

According to the draft Resolution, the interest rate of the preferential credit package of VND100,000 billion for purchasing social housing is equal to the interest rate of loans for poor households as decided by the Prime Minister in each period. The disbursement period of the preferential credit package of VND100,000 billion will be until the full disbursement of this credit package, but not exceeding December 31, 2030.

The allocation and disbursement of preferential credit packages for social housing development is expected to be implemented as follows: From 2025 to 2029, approximately VND 16,500 billion will be allocated each year; in 2030, approximately VND 17,500 billion will be allocated.

To implement the preferential credit package of 100,000 billion VND, the Ministry of Construction proposed that the Government assign the Ministry of Finance to review and carefully and specifically evaluate the possibility of issuing government bonds to provide capital for the Social Policy Bank to lend for purchasing, leasing, constructing, renovating and repairing houses.

The draft proposes that the Ministry of Planning and Investment coordinate with the Ministry of Finance and relevant ministries and branches to allocate government bond capital for social housing development. In the process of appraising investment policies for industrial park infrastructure projects, it is necessary to appraise the allocation of land for the development of workers' housing according to the provisions of the Housing Law.

Along with that, the Ministry of Construction proposed that the Government assign the State Bank to coordinate with the Vietnam Bank for Social Policies to review and remove difficulties and obstacles to effectively implement the social housing support loan program.

The Vietnam Bank for Social Policies develops a project to issue government-guaranteed bonds, sends a request for a guarantee to the Ministry of Finance for submission to the Prime Minister for approval, grants a government guarantee to the Vietnam Bank for Social Policies to organize the issuance of government bonds, and manages capital sources according to regulations.

At the same time, localities must have specific mechanisms and solutions to shorten administrative procedures for project establishment, approval, land allocation, land lease, site clearance, construction investment procedures, etc. to support and encourage businesses to invest in construction projects, create supply for the market and take advantage of preferential capital sources for social housing development.

The Resolution aims to ensure capital to implement the investment project to build at least 1 million social housing units for low-income people and industrial park workers in the period of 2021 - 2030. Thereby, creating conditions for everyone to have a place to live, providing housing support for social policy beneficiaries, low-income people, and the poor facing housing difficulties, contributing to political stability and ensuring social security.

Series of apartment projects launched at the end of the year

In the final months of 2024, the East is dominating the West of the capital in terms of new apartment supply with many projects officially introduced or launched during this time.

Most recently, real estate developer MIK Group introduced to the market the Imperia Signature Co Loa project in the Vinhomes Global Gate metropolitan area (Dong Anh, Hanoi). The first subdivision, The Continental, of the Imperia Signature product line, will be introduced in the near future with two 45-storey towers, expected to supply the market with more than 1,700 apartments. The expected selling price is from 79 million VND/m2 (excluding VAT and maintenance costs).

In mid-November, the East of Hanoi continued to welcome a new project, The Paris subdivision of The Metropolitan (Vinhomes Ocean Park).

In early November, two apartment buildings S2.10 (523 apartments) and S2.17 (497 apartments) in the Sapphire subdivision, Vinhomes Ocean Park 1 were also officially opened for sale.

For more than a decade, the West has always been the area that dominates the supply of real estate in Hanoi, including the dominance of apartments. The West is also where many real estate fevers of the capital market are recorded, from land, low-rise real estate to apartments.

However, in the past 3 years, the market balance has been shared by the East of the city, the West is no longer dominant. Savills's Q3/2024 market report said that in the first 9 months of 2024, Hanoi recorded more than 12,000 newly launched apartments, mainly concentrated in the West and East of the capital. Also according to Savills, it is expected that in the last quarter of 2024, Hanoi will welcome 9,700 new apartments, of which 88% will come from the next phases of large projects, mainly concentrated in the metropolitan areas in the West and East of the city. Thus, the West and East of Hanoi are sharing the "market share" in the capital's real estate market, in a balance of power and counterbalance.

Hai Duong builds regulations on support mechanism for implementing social housing construction investment projects

At the regular meeting of the Hai Duong Provincial People's Committee held on the morning of December 2, Chairman of the Hai Duong Provincial People's Committee Le Ngoc Chau agreed to develop regulations on support mechanisms for implementing social housing investment projects in Hai Duong province until 2030.

According to the report of the Department of Planning and Investment of Hai Duong province, the Regulation on support mechanism for implementing social housing construction investment projects in Hai Duong province until 2030 stipulates the support mechanism for implementing social housing construction investment projects in Hai Duong province until 2030 invested with non-state budget capital and Trade Union financial resources.

This regulation proposes that Hai Duong province support all compensation and site clearance costs within the scope of social housing construction investment projects (not applicable to the cases specified in Point c, Clause 4, Article 84 of Housing Law No. 27/2023/QH15); support investment costs for construction of site leveling items according to detailed planning approved by competent authorities within the scope of social housing construction investment projects. The support amounts are not included in the costs for determining the selling price, rental price, and lease-purchase price of social housing.

Projects with investment phases will be considered for support according to the project's investment phases. In case of investment in social housing construction on land fund for independent social housing development, the investor is responsible for advancing funds to carry out compensation, site clearance and investment in construction of site leveling items.

At the same time, it is proposed that the Provincial People's Committee support compensation costs, site clearance and construction investment costs for site leveling items after the investor completes the construction of technical infrastructure works of the project according to detailed planning, designs appraised and approved according to regulations and inspected and confirmed by competent State agencies for implementation value.

In the case of housing construction investment projects that have been approved by competent authorities for investment policy and are in the process of project implementation as of the effective date of this regulation, but the project's compensation and site clearance costs have not been deducted from land use fees or have not been allocated to the selling price, rental price, or hire-purchase price of social housing or have not been reimbursed in other forms according to the provisions of law, they shall be entitled to full support for site clearance costs.

Social housing construction investment projects that have been approved in principle by competent authorities before the effective date of the resolution but have not yet been allocated land by competent authorities to implement the project shall be entitled to support for construction investment costs for site clearance items according to detailed planning approved by competent authorities within the scope of the social housing construction investment project.

Chairman of Hai Duong Provincial People's Committee Le Ngoc Chau agreed with the content of the report of Hai Duong Department of Planning and Investment. At the same time, he affirmed the necessity of issuing policies to support the implementation of social housing projects. This policy is consistent with the guidelines and policies of the Party and State, consistent with the province's social housing development goals, targeting low-income workers.

The Chairman of the Hai Duong Provincial People's Committee requested the Hai Duong Department of Planning and Investment to take into account the opinions at the meeting, review policies to ensure compliance with legal regulations, and suit the local situation. The content needs to clearly define the rights and responsibilities of investors and the responsibilities of state agencies. The Department of Construction should study and propose social housing planning, including the minimum and maximum number of floors. Social housing projects without investors must comply with new legal regulations.

Apartments continue to dominate the Binh Duong market

Apartments in the “affordable housing” price range continue to dominate the Binh Duong real estate market in the last months of the year.

Batdongsan.com.vn's October real estate market data shows that apartments are a segment with strong growth in both interest and number of listings. Specifically, interest in apartments in the buying and selling market increased by 5% compared to September, and the number of listings also increased sharply, reaching 12% compared to the previous month. Notably, this growth momentum continues the growth rate of previous months.

Accordingly, according to market data from Batdongsan.com.vn, in the first 9 months of 2024, in both the buying and selling market and the rental market of Binh Duong, apartments always lead in terms of interest. Specifically, in the buying and selling market, apartments lead in terms of interest with a growth rate of 6% compared to the beginning of the year. In the rental market, apartments far surpass all other segments in terms of interest, growing by 33% compared to the beginning of the year.

In particular, the level of interest is only concentrated in apartments located near Ho Chi Minh City, such as Di An and Thuan An. These are also the two areas with the highest level of interest in apartments in the Binh Duong market, with growth figures compared to the beginning of the year of 20% and 7%, respectively.

Regarding the above reality, Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn said that Binh Duong apartments attract the attention of consumers because the real demand for housing in this market is very large. Binh Duong is the industrial capital of the South, so the demand for living is large, the immigration rate and population growth are high.

According to the General Statistics Office, Binh Duong's population density and immigration rate are 26.4%, the highest in the country. Compared to a series of other satellite markets, Binh Duong is a province near Ho Chi Minh City with a commercial gateway position.

The average price of apartments in Binh Duong is also lower than in Ho Chi Minh City, when the average price of apartments in the three hot spots of Di An, Thuan An and Thu Dau Mot only fluctuates between 28-33 million VND/m2. With the advantage of living, the level of interest in Binh Duong apartments mainly comes from the needs of local and neighboring people.

Data from Batdongsan.com.vn shows that, geographically, the level of interest in Binh Duong apartments comes from two main customer groups: Binh Duong and Ho Chi Minh City. Of which, customers from Ho Chi Minh City account for 49%, and customers from Binh Duong account for 33%.

Source: https://baoquocte.vn/bat-dong-san-moi-nhat-diem-danh-loat-du-an-phia-dong-ha-noi-bung-hang-cuoi-nam-chung-cuat-chiem-song-thi-truong-binh-duong-295938.html