(CLO) Land funds in central areas are increasingly scarce and expensive. If developed in land funds for social housing located in the suburbs, it will be "difficult" to sell because it is difficult to attract buyers.
At the "Vietnam Real Estate 2025" forum held on the evening of December 27, Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute (VARs IRE) said that the number of social housing projects implemented and opened for sale in urban areas is very modest.
If developed on land funds for social housing located in the suburbs, it will be "difficult" to sell because it is difficult to attract buyers. (Photo: ST)
A report by the Vietnam Real Estate Brokers Association shows that in the period of 2021 - 2025, the demand for social housing is 1.24 million units and the plan set by the Ministry of Construction is 428,000 units.
However, in reality, from 2021 to now, the whole country has only completed 57,652 units, reaching only 13.5% of the 2021-2025 plan. In addition, 133 projects with a scale of 110,217 units were started, 415 projects were approved for investment, with a scale of 412,240 units.
Ms. Mien emphasized: Most social housing projects are located in the suburbs, far from the center, not convenient for workers working in urban areas.
According to Ms. Mien, many businesses currently "want" to build social housing, both to contribute to the community and to take advantage of preferential policies and meet the huge and stable housing needs of this segment.
However, in places with the greatest demand and purchasing power, businesses find it very “difficult” to do so because the actual legal and procedural processes are complicated and they are not “interested” in doing so when the selling price and profit are controlled too low while development costs (land, construction, interest, etc.) are constantly increasing.
In addition, land in the central area is increasingly scarce and expensive, even if there is work, it will not be "enough" to meet the increasing "demand" for housing of the people. If developing in land funds for social housing located in the suburbs or areas with underdeveloped infrastructure, businesses will have "difficulty" selling because it is difficult to attract buyers.
However, the Deputy Director of VARS IRE expressed that, according to the provisions of the new law, there are many bright spots in investment in social housing development.
Specifically, investors do not have to carry out procedures for determining land prices, calculating land use fees, exempted land rents, and do not have to carry out procedures for requesting exemption of land use fees and land rents, except in cases where a maximum of 20% of the total residential land area is reserved for the construction of technical infrastructure systems for the construction of service, commercial and commercial housing projects. They are entitled to value-added tax and corporate income tax incentives in accordance with the provisions of the law on tax.
In some cases, a maximum of 20% of the total residential land area within the project area has been allocated for investment in the construction of technical infrastructure systems for investment in the construction of business, service, commercial and commercial housing facilities.
Allow manufacturing enterprises in industrial parks to rent worker accommodation to arrange for their workers to rent. Add cases where enterprises, cooperatives, and cooperative unions in industrial parks participate in developing social housing.
At the Forum, Mr. Nguyen Van Sinh, Deputy Minister of Construction, said that one of the most important goals of the Ministry of Construction in the coming time is to implement the project of 1 million social housing apartments. This is part of the social housing development strategy, helping to solve the housing shortage problem for low- and middle-income people.
Mr. Nguyen Van Sinh, Deputy Minister of Construction. (Photo: VArs)
According to the Deputy Minister, the Prime Minister has strongly directed localities to implement this project, and currently, nationwide, there are 644 social housing projects being implemented. Up to now, these projects have completed 57,000 apartments and are expected to continue to be strongly implemented in the coming years.
This demonstrates the strong commitment of the Government and the Ministry of Construction to improving people's quality of life, while contributing to stabilizing the real estate market.
“The Ministry of Construction is focusing on implementing measures to remove obstacles for projects, and at the same time adjusting planning so that projects can be completed on schedule,” said Deputy Minister Nguyen Van Sinh.
In 2024, housing supply in Vietnam increased by 8.6% compared to 2023, marking a positive signal in improving the housing situation across the country. New projects have been launched, especially social housing projects, which will contribute greatly to meeting the increasing housing demand, especially in the context of rapid urbanization.
The Deputy Minister also said that these projects will help create thousands of jobs, contribute to promoting local economic development and provide a better living environment for people. This is an important step in solving the housing shortage problem, while improving the quality of life for Vietnamese people.
With drastic and effective steps in institutional reform and implementation of social housing projects, Vietnam's real estate market is showing signs of recovery and strong development.
“The goal of 1 million social housing apartments not only meets people's needs but also contributes to improving the quality of life, promoting stability and sustainable development of the Vietnamese real estate market in the future,” the Deputy Minister of Construction emphasized.
Source: https://www.congluan.vn/lam-nha-o-xa-hoi-o-ngoai-o-se-ken-nguoi-mua-kho-ban-post327868.html
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