Novaland Group (NVL) and Hoang Quan Real Estate (HQC) cooperate to do a series of social housing projects

Novaland Group (stock code NVL) and Hoang Quan Real Estate Trading and Services Joint Stock Company (stock code HQC) are expected to launch 3,000 social housing units this year in many southern localities.

Representatives of Novaland Group and Hoang Quan Real Estate signed a cooperation agreement to develop social housing projects.

Novaland Group Joint Stock Company (Novaland Group, stock code NVL - HoSE) and Hoang Quan Real Estate Trading and Services Joint Stock Company (stock code HQC - HoSE) have just signed a strategic cooperation agreement to develop social housing projects . According to the agreement, Novaland Group and Hoang Quan Real Estate will jointly contribute finance, capacity, experience, and exploit existing land funds of both parties to invest in the construction of potential social housing projects in Ho Chi Minh City and other southern provinces such as Binh Thuan, Dong Nai, Binh Duong, Long An... Mr. Ng Teck Yow - General Director of Novaland Group said that this is an opportunity for the parties to promote their existing strengths, contributing to bringing the dream of affordable housing closer to low-income people. With this cooperation, Novaland Group and Hoang Quan Real Estate are expected to hand over 3,000 social housing units this year in many localities. At the same time, the two sides will jointly research and develop new social housing projects on Novaland Group's existing land fund. Novaland Group is known as a unit specializing in developing high-end real estate projects or resort real estate, and has never implemented a social housing project. However, at a conference with the Prime Minister on housing development for low-income people in the past, Novaland Group's leaders affirmed their readiness to take on the task of developing 200,000 social housing units in the southern provinces, focusing on Ho Chi Minh City, to contribute to completing the target of 1 million social housing units set by the Government.

Meanwhile, Hoang Quan Real Estate used to be a pioneer in the field of investment and development of social housing and housing for workers in the South nearly 10 years ago, with a series of projects put into use such as HQC Plaza, HQC Hoc Mon, HQC Binh Trung Dong... In addition, this company is implementing many social housing projects. According to Mr. Truong Anh Tuan - Chairman of the Board of Directors of Hoang Quan Real Estate, up to now, Hoang Quan Real Estate has implemented the construction of a chain of 24 social housing projects with more than 35,000 social housing products and housing for workers. Mr. Truong Anh Tuan also said that Hoang Quan Real Estate has registered to implement 50,000 social housing apartment products from 2022 to 2030 to accompany the Government's goal of developing 1 million social housing units. Specifically, Hoang Quan Real Estate has sent a document to the Ho Chi Minh City People's Committee asking for access to social housing projects in the city. At the same time, it has registered to implement 50 social housing projects and 10 projects to renovate and build new old buildings in Ho Chi Minh City. The cooperation agreement between Novaland Group and Hoang Quan Real Estate was made in the context of the slow implementation of social housing projects in Ho Chi Minh City. According to the Ministry of Construction, Ho Chi Minh City and a number of other localities have a huge demand for social housing, but investment is still limited compared to the assigned target by 2025. The city is expected to be able to put into use 7 projects, with a scale of nearly 5,000 apartments, equivalent to only 19% of the demand. According to the assessment of many financial institutions, the new regulations on social housing development that have just been approved have made this sector more attractive to businesses. In particular, the Housing Law 2023 was passed on November 27, 2023 and will be applied from January 1, 2025, which will remove some difficulties for investors. In the old Housing Law, investors had to reserve 20% of the area of commercial housing projects for developing social housing, but the new Law allows investors to: (1) build social housing at other locations outside the commercial housing project or pay money equivalent to the value of the social housing land fund and (2) develop commercial housing projects and commercial service businesses on up to 20% of the area of the social housing project and enjoy all profits from these commercial service businesses. Source: https://tapchicongthuong.vn/tap-doan-novaland--nvl--va-dia-oc-hoang-quan--hqc--hop-tac-lam-loat-du-an-nha-o-xa-hoi-121529.htm