The Ministry of Construction has proposed short- and long-term measures to ease the difficulties facing the country’s real estate market, with social housing development to drive the market forward.
VOV.VN - Prime Minister Nguyen Xuan Phuc has proposed the start of a pilot scheme aimed at supporting families with two children by reducing personal income tax, prioritising the purchase of social housing, in addition to giving greater choice to families when it comes to sending their children to public schools.
Social housing could be the solution to driving the real estate market out of this difficult time caused by the COVID-19 pandemic, according to the Ministry of Construction.
Demand for low-priced social houses and houses for long-term rent was high but incentive policies have not yet encouraged investors.
The central city of Da Nang is focusing on developing social housing so as to meet increasing demand of local people.
HCM City plans to draw up specific policies for firms having capital of more than VND100 billion (US$4.3 million) in the first quarter of this year, and has committed to create more favourable conditions for enterprises.
Nine social housing projects for low-income earners with more than 4,100 apartments measuring 205,500 sq. m were completed and put into use in 2019, which did not meet the target set by the national housing development strategy to 2020 with a vision to 2030.
Developers in the southern region are ignoring the workers’ housing segment despite the huge demand for it, analysts said.
Ho Chi Minh City plans to develop social housing on its own instead of building new resettlement housing with state funds, according to the city’s People’s Committee.
The uptake for social housing in Hanoi has been disappointingly low due to indifference from the intended target customers.
HCM City has a surplus of houses for relocated residents, but severely lacks social housing.
Nguyen Thi Phuong, who has worked at the Thang Long Industrial Park in Hanoi’s outskirts district of Dong Anh for years, said her family of three would enjoy a stable life if not for housing.
Vietnam has to date completed 87 social housing projects with some 28,800 apartments for workers at industrial parks (IPs), meeting just 28% of the demand, according to the Ministry of Construction.
Hanoi’s property market will have more supply of social housing products for low-income people by 2020 in order to address the paucity of those products on the market combined with the over-supply of commercial houses.
As many as 200 foreign delegates – including heads of the world’s leading real estate associations, developers, and speakers – and nearly 1,000 domestic officials, economists, and enterprises, have registered to join the International Real Estate Conference (IREC) 2018 that will take place in Hanoi from September 5-7.
Around 3 million workers will have demand for housing by 2020, according to reports by 46 out of 63 provinces and cities.
Social housing development not only improves societal strength but also boosts the economy overall, said Minister of Construction Pham Hong Ha, emphasising that Government spending on social housing can lift the real estate industry as a whole.
There will not be much change in the property market in the second half of the year, a senior Ministry of Construction official has said.
The State Bank of Vietnam (SBV) has decided to keep preferential loan interest rate unchanged at 5% for purchase, rent or hire of social housing projects in 2018.
HQC USA LLC, a member of Vietnamese property developer Hoang Quan Group, recently held a groundbreaking ceremony for a US$40 million mixed-use development project at Tacoma city, Washington.