According to the Government's project to build one million social housing units by 2030, Ho Chi Minh City will develop 69,700 units in the 2021 - 2030 period. The city's target number is 93,000 units, of which 26,200 - 33,000 units will be developed in the 2021 - 2025 period.
According to the Department of Construction, from 2021 to now, Ho Chi Minh City has only had 10 social housing projects, of which 6 projects have been completed and 4 projects are under construction, with a total of nearly 6,000 houses. This number is considered modest and poses many challenges to achieving the target of developing 93,000 social housing units.
Ho Chi Minh City will develop 69,700 - 93,000 social housing units in the 2021 - 2030 period. (Illustration: H. Linh)
At the Conference on Promoting Investment in Social Housing Construction in Ho Chi Minh City by 2030, recently organized by the Ho Chi Minh City People's Committee, Chairman of the Ho Chi Minh City People's Committee Phan Van Mai pledged to reduce the time to carry out procedures for investing in social housing projects from more than 1 year to no more than 6 months.
The head of the city government will also directly direct social housing projects for rent only, meeting the rental needs of cadres, civil servants, public employees, armed forces officers and workers.
Currently, 21 enterprises have registered to invest in building social housing on land funds created by the enterprises themselves, with about 52,000 apartments. Of which, 9 enterprises have registered to invest on specific land addresses under the enterprises' rights of use, with about 40,000 apartments. The remaining 12 enterprises have registered and committed to finding land funds in the area to build social housing, with about 12,000 apartments.
In addition, the Ho Chi Minh City Department of Construction has announced a list of 7 projects calling for investment, with about 8,000 apartments. Combined with the 10,000 apartments planned for public investment by the city, Ho Chi Minh City can develop about 70,000 social housing units by 2030, meeting the targets according to the Government's Project.
According to calculations by the Ho Chi Minh City Real Estate Association (HoREA), to reach the number of about 93,000 social housing units, Ho Chi Minh City needs to have about 69 - 93 independent projects, with an average scale of 1,000 apartments/project. The total land area that needs to be arranged is about 96 - 130 hectares (according to the actual detailed planning at a scale of 1/500 of the Le Thanh - Tan Kien social housing project that has been approved, with an area of 1.9 hectares with a scale of 1,450 1-2 bedroom apartments, area of 45 - 50 m2/unit).
With the land fund that Ho Chi Minh City has allocated enough for social housing development, if 20% of the land fund is used in commercial housing projects, the total land area of these commercial housing projects needs to be about 480 - 650 hectares.
If we combine investment in independent social housing projects with the use of 20% land fund, the total land area that needs to be arranged can also be up to several hundred hectares.
One of the rare social housing projects in Thu Duc City that is about to open for sale by investor Dien Phuc Thanh is highly anticipated by those in need of housing. (Photo: Investor)
Mr. Le Hoang Chau, Chairman of HoREA, said that the solution to create land funds and accelerate investment is for the city to allocate and lease land through bidding to select investors. The land fund includes public land that has been cleared (clean land).
Second, the land fund that the investor of a commercial housing project must reserve to build social housing according to regulations (20%), but the investor does not build social housing on this land, and voluntarily hands it over to the State, then the State will bid to select an investor to implement it.
Third, if the land fund that the commercial housing project investor arranges is in another location, the city can also bid to select an investor.
For the land fund created from the contributions of investors in commercial housing projects (20% that the investor does not build, or does not "exchange" another equivalent land fund but pays at the equivalent value), the city can use this money to create a land fund for social housing development.
According to HoREA, to successfully implement the goal of developing social housing in the area by 2030, there must be specific mechanisms and solutions, suitable to the characteristics of the city's situation, to attract investors. The most difficult thing is for projects that are only for rent, which are very difficult to attract investment due to low profit margins and very long capital recovery periods. According to calculations, social housing projects for rent only have a capital recovery period of no less than 20 years.
The Ho Chi Minh City Department of Construction has announced three designs for high-rise social housing in the area. According to the Ho Chi Minh City Real Estate Association, if the Ministry of Construction allows them to be applied in the near future, it will help save time and effort for both investors and state agencies and reduce the cost of social housing.
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