Civil servants' salaries can only buy a house with a few hundred years' salary; Hanoi will no longer have new affordable apartments for sale in 2025
Dong Anh, Gia Lam, and Me Linh districts are about to have more than 12,000 social housing units; Binh Dinh is preparing to bid for investors in many social housing projects; The 1,440 billion VND urban area along Vinh River has been allocated land for implementation.
Here are the real estate highlights of the week.
“Civil servants can't afford to buy a house for hundreds of years, so why not expand land for social housing?”
This question was raised by delegate Nguyen Cong Long (Dong Nai) when the National Assembly discussed in the hall the draft Resolution on piloting the implementation of commercial housing projects through agreements on receiving land use rights or having land use rights (Draft), on the morning of November 21.
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| Delegate Nguyen Cong Long spoke at the hall. |
According to the Dong Nai delegate, the real estate market currently has many problems, real estate prices are skyrocketing, making it difficult for the poor, workers, officials, civil servants, and public employees to buy houses.
“Voters have asked why the National Assembly does not apply this mechanism to social housing and social housing development, but only to commercial housing. Of course, contributing to the development of commercial housing is also for the whole society. However, the disadvantaged have no policies at all, but they propose to pilot this policy,” Mr. Long reflected.
On the other hand, according to delegate Long, with specific policies in the draft resolution, the Government also reported that there are localities where the conversion of land use purposes to commercial housing construction is not a problem. So why is it necessary to pilot the entire 63 provinces and cities? It is very necessary to consider the scope, it is impossible to open it widely like that, Mr. Long emphasized.
Stating that the impact assessment report in the draft resolution also predicted many negative phenomena, such as land speculation, agricultural land acquisition, etc., delegate Long emphasized that the phenomenon of agricultural land acquisition has been going on for decades.
Mr. Long said that there should be solutions to prevent risks, prevent the legalization of land acquisition to develop a healthy market. Especially prevent the collection and conversion of forest land, rice land, production land, etc.
Also concerned about commercial housing, delegate Do Huy Khanh (Dong Nai) said, looking from Ha Giang to Ca Mau, there are a lot of commercial housing, there are urban areas where no one lives. If these places do business, it is just buying and selling on paper, to make a profit, not to live in. Because that urban area needs accompanying infrastructure services (administrative offices, schools, hospitals, etc.).
Meanwhile, low-income people with salaries of 7 million, 10 million, 20 million cannot afford to buy commercial housing. The real need is social housing, so why not allocate land, not make policies for social housing but make policies for commercial housing? - Mr. Khanh stated his opinion.
“The beautiful land area has been completed with projects, but when completed, there will be no houses. We are removing the burden of commercial housing areas that cannot be bought, cannot be sold, or are sold without people living there,” said the Dong Nai delegate.
Reporting on the explanation of delegates' opinions, Minister of Natural Resources and Environment Do Duc Duy said he would fully absorb the delegates' opinions and have a full explanation before the National Assembly votes to approve.
According to the Minister, the purpose of issuing the resolution is to add more methods of accessing land for commercial housing that the current Land Law does not allow.
According to the provisions of the Land Law, urban area projects with a scale of 20 hectares or more can be implemented. Smaller-scale commercial housing projects cannot be implemented due to regulations on land types, so it is necessary to issue this resolution, the Minister explained.
Hanoi will have no new affordable apartments for sale in 2025
According to One Housing Center for Market Research and Customer Insight, the residential real estate market in Hanoi in 2025 is forecast to record more than 30,000 new apartments, equivalent to the peak period of 2016 - 2019.
Of which, 48% of the new supply will come from the Eastern area of Hanoi, with projects from Vinhomes Ocean Park 1 - 2. In contrast, the supply in the Western area mainly comes from the sales of existing projects.
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| In Hanoi, new apartments for sale in 2025 will have an average price of about 72 million VND/m2. Photo: Thanh Vu |
Notably, the Northern region is forecast to contribute 19% of the apartment supply market share thanks to the Vinhomes Global Gate urban area.
Although apartment supply has shown clear signs of recovery, Mr. Tran Quang Trung, Business Development Director of OneHousing, said that selling prices are still unlikely to decrease. The reason comes from the fact that the newly opened supply is mainly in the high-end and luxury segments.
According to the company's forecast, all new apartments in 2025 will be in the high-end (VND50-80 million/m2) and luxury (VND80-230 million/m2) segments. Of which, luxury apartments account for 36% and there are no mid-range or affordable apartments.
With the above situation, the average price for newly opened apartments in 2025 could reach VND 72 million/m2 (excluding VAT and maintenance fees), an increase of 75% compared to the first quarter of 2022.
Dong Anh, Gia Lam, Me Linh districts are about to have more than 12,000 social housing units.
In a recent report on social housing development and management, the Hanoi Department of Construction said that the city has 69 projects that have been and are being implemented. From 2021 to present, 8 projects have been fully completed with 10,270 units and 3 projects have been partially completed.
The Department said that from now until the end of next year, 11 projects are expected to be completed with nearly 6,000 units, equivalent to 345,000 square meters of floor space. With a total of 19 units expected to be completed in the period of 2021 - 2025, the city will achieve more than 78% of the target in the social housing development plan with about 15,440 units, equivalent to 952,000 square meters of floor space.
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| Currently, Hanoi is still "slow" in the social housing race. Photo: Thanh Nguyen |
In the period of 2026 - 2030, it is expected that there will be 50 projects planned to be implemented with nearly 57,200 apartments, equivalent to 3.2 million square meters of floor space. Of which, the city is appraising the investment policy for 4/5 independent social housing areas, concentrated in Dong Anh, Gia Lam, and Me Linh districts. The projects have a total area of over 200 hectares, providing more than 12,000 apartments.
Specifically, there are 2 social housing areas in Tien Duong commune (Dong Anh district); a concentrated social housing area in Co Bi commune (Gia Lam district); a concentrated social housing area in Dai Mach commune (Dong Anh district) and Tien Phong commune (Me Linh district).
In addition, the new social housing supply in Hanoi also comes from the conversion of student housing in the new urban area of Phap Van - Tu Hiep into social housing for rent.
Hanoi is about to have 3 more industrial parks in Thuong Tin and Soc Son
At the Special Session held on the afternoon of November 19, the Hanoi People's Council approved the planning task of building 3 industrial parks in Thuong Tin and Soc Son with a total area of about 635 hectares.
Accordingly, the first project is Bac Thuong Tin Industrial Park in Thuong Tin District. The planning area is about 137 hectares in Van Binh, Lien Phuong and Ninh So communes.
The project targets biological industries serving agriculture, agricultural product processing; mechanical engineering, electronics, supporting industry development, using modern production processes, reducing environmental pollution. The number of workers and laborers is expected to be about 7,000 people.
The second project is Phung Hiep Industrial Park, also in Thuong Tin District. The planned land area is nearly 175 hectares, located in To Hieu, Nghiem Xuyen, Thang Loi, and Dung Tien communes.
The project targets biological industries serving agriculture, processing agricultural products, high-quality food associated with raw material areas; mechanical engineering, electronics, and supporting industry development. The number of workers and laborers is expected to be about 8,000 people.
The third project is the Soc Son clean industrial park in Soc Son district. The planned land area is nearly 324 hectares, located in Tan Dan and Minh Tri communes.
The project is oriented to attract and develop clean industries, with priority given to the development of electronics - information technology, mechanics, automobile manufacturing, new materials, pharmaceuticals - cosmetics, textiles. The number of workers and laborers is expected to be about 18,000 people.
Hanoi currently has 10 operating industrial parks with a total area of over 1,300 hectares and an occupancy rate of nearly 100%. In the period of 2025 - 2030, with a vision to 2050, the City People's Committee plans to add 9 industrial parks with an area of 2,911 hectares.
Binh Dinh prepares to bid for investors in many social housing projects
Mr. Tran Viet Bao, Director of the Department of Construction of Binh Dinh province, said that the Provincial People's Committee has just approved the detailed planning project at a scale of 1/500 for the Bong Hong social housing project, Ghenh Rang ward, Quy Nhon city.
After approval, Binh Dinh Provincial People's Committee will organize the selection of investors to implement the project in the form of bidding to select investors.
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| Perspective of Bong Hong social housing project. |
According to the plan, the Bong Hong social housing project has an area of about 2.44 hectares, of which the residential land for building social housing apartments is more than 1.4 hectares, with a population of about 2,818 people. The Bong Hong social housing project will be about 12 stories high, with a maximum of 783 apartments.
Previously, the Bong Hong social housing project was approved by the Provincial People's Committee in principle for investment with the approved investor being Bong Hong Real Estate Company Limited in Decision No. 494, on February 8, 2021. The project is implemented on a land area of over 2.8 hectares; total investment capital of over 786 billion VND; scale of 800 social housing units and 58 commercial townhouses.
The project is expected to start construction in the second quarter of 2021 and be completed in the fourth quarter of 2023. However, not long after that, the People's Committee of Binh Dinh province signed a decision to revoke and cancel Decision No. 494. The reason is that the approval of the investment policy for the social housing project is carried out in accordance with new regulations of the law on investment.
By June 20, 2023, the People's Committee of Binh Dinh province approved the contractor selection plan for the 1/500 scale detailed construction planning project of the Bong Hong Social Housing Project with a total package value of more than 385 million VND.
Nghe An: 1,440 billion VND urban area project along Vinh River is allocated land for implementation
According to the decision, the project is allocated more than 5.5 hectares of urban land to build low-rise housing areas according to the approved planning. The form of land allocation is with land use fee collection. The land use term is 50 years, from the date the Provincial People's Committee issues the decision to allocate land to the investor.
The land area used for the purpose of constructing technical infrastructure and social infrastructure works with more than 8.94 hectares will not be subject to land use fees. After completing the construction according to the planning, the investor is required to hand it over to the Vinh City People's Committee for management and use according to regulations.
The Vinh riverside urban area project invested by the Tri Duong - Ecopark Hai Duong joint venture (belonging to Ecopark Group) has a scale of more than 21 hectares, with a total capital of 1,440 billion VND. After completion, the project will have an expected population of 1,600 - 1,800 people, and a project implementation area of about 20.1 hectares.
According to the plan, the project will allocate more than 5.5 hectares for low-rise housing projects adjacent to main urban traffic routes and internal traffic routes. Of which, 88 plots of land for townhouses combined with commerce, 157 plots of land for townhouses, and 84 plots of land for villas will be built.
The project also allocates more than 1.4 hectares of land in the Southwest to build social housing, with a maximum construction density of 50% and 2-5 floors high, with a maximum construction floor area of 3.55 hectares.
In addition, the project will allocate 4.1 hectares for green landscape areas along the river and interspersed with residential areas. A 1-storey cultural house. Water surface land occupies 2.3 hectares. Traffic land will be arranged for more than 6.6 hectares and the rest will be technical infrastructure land.
Binh Thuan converts 18,724.4 m2 of production forest land into a resort project
Recently, the People's Committee of Binh Thuan province has decided to allow Minh Quan Tourism Company Limited to convert the purpose of using 18,724.4 m2 of production forest land in Mui Ne ward, Phan Thiet city to commercial service land. The form of land use after converting the purpose of land use is to rent land with annual payment to implement the Lamuine 1 Resort & Hotel project.
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| Perspective of Lamuine 1 Resort & Hotel project. |
Land use term from the date of signing this decision until November 29, 2055 according to Investment Policy Approval No. 667/QD-UBND, certified for the first change on March 17, 2021 by Binh Thuan Provincial People's Committee.
At the same time, this decision also reclaims an area of 2,639.2 m2 of unused land and flat land located within the road corridor managed by the People's Committee of Mui Ne Ward and gives it to Minh Quan Tourism Company to implement the Lamuine 1 Resort & Hotel project. The purpose of use is commercial service land. The land use term is from the date of signing this decision until November 29, 2055. The State leases land and collects annual land rent.
The form of land lease is that the State leases land and collects annual land rent. The land is in the case of land lease without auctioning land use rights, without bidding to select investors to implement projects using land.
The land price for calculating annual land rent for commercial service land approved by the Provincial People's Committee is VND 3,619,200/m2.
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