(NLDO) - Proposal to build a mechanism for young people aged 18-45 to buy a house for the first time to borrow with an interest rate of about 6%-7%/year
The Ho Chi Minh City Real Estate Association (HoREA) has just sent a document proposing solutions for social housing to the Government and ministries to promote the healthy and sustainable development of social housing and the real estate market.
In this document, Mr. Le Hoang Chau, Chairman of HoREA, said that the real estate market in Ho Chi Minh City and the whole country will still face many difficulties in 2025.
Previously, in 2024, Ho Chi Minh City continued to experience a shortage of housing project supply, leading to a shortage of housing products. It is worrying that since 2021, in new housing projects, there is no longer any affordable commercial housing with a selling price of less than 30 million VND/ m2 and there is currently a severe shortage of social housing.
Social housing project of Hoang Quan Company
The results of social housing development in the city from 2021 to 2024 are too modest, not meeting the set targets. The Ho Chi Minh City Department of Construction said that there are only 10 social housing projects, of which 6 projects have been completed, 4 projects are under construction with a total of nearly 6,000 houses, only reaching 8.6% of the target of developing 69,700-73,000 social housing apartments assigned by the Government, posing many challenges for the city to achieve the target of social housing development from now until 2030.
Accordingly, Mr. Chau said that in response to the Program to develop at least 1 million social housing apartments in the 2021-2030 period, about 15 large real estate corporations and enterprises have registered to participate with more than 1.5 million apartments, so the Association proposed that the Prime Minister direct localities to arrange sufficient land funds and implement many methods to create land funds, especially creating conditions for investors to negotiate on receiving land use rights or having land use rights and bidding methods to select investors for social housing projects.
In particular, the Association proposed a number of solutions to encourage the development of affordable commercial housing and suggested that the State Bank consider building a mechanism for young people (aged 18-45) buying their first home to borrow credit at reasonable commercial interest rates (about 6%-7%/year, with the loan secured by the house itself) for a period of 10-15 years.
This will encourage businesses to restructure existing real estate projects, shift investment to the affordable commercial housing segment and, together with the "Program to develop at least 1 million social housing apartments in the 2021-2030 period", will restructure the real estate market to be safe, healthy and sustainable.
The association finds that most young people are ambitious and have a long life to do business and pay off debts. Usually after about 10-15 years, their income will double or more than double, so there is almost no risk for commercial banks to lend.
Source: https://nld.com.vn/kien-nghi-uu-dai-cho-nguoi-18-45-tuoi-mua-nha-lan-dau-196250210100305441.htm
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