Complicated administrative procedures

The Vinaconex Xuan Mai Concrete and Construction Joint Stock Company (Vinaconex Xuan Mai) started to receive applications to buy social houses in the Kien Hung residential project in Ha Dong district 10 days ago, but there are only 1,000 valid applications, said Nguyen Quynh Chi, a Vinaconex official.

More than 1,000 invalid ones have been returned, she said.

Nguyen Van Long from Thanh Luong ward is a case in point. When he heard about a project of 800 social flats to be sold in Ha Dong district, he prepared an application for registration. However, it was returned because it was not properly affirmed by the chairman of the ward’s People’s Committee.

Chi said most confirmations by ward People’s Committees do not comply with the city’s requirements despite the fact that Vice Chairman of the Hanoi Municipal People’s Committee, Phi Thai Binh, has asked them to focus on confirming that the subject’s living area is currently less than 5 square meters per person.

This makes the situations more difficult for both the people and the registration offices, she said.

No prices listed

One of the most worrying issues is the price of social houses. Although the deadline for registration is March 30, investors have not yet announced the prices for the houses in their projects.

Vinaconex Xuan Mai Vice CEO Nguyen Van Da said his company cannot estimate prices for the houses in the Kien Hung project until the end of April, about a month after the registration process is completed.

According to Hanoi’s regulations on the sale, lease, purchase and the use of social housing in Hanoi, each individual can only register once for social houses, so it will be very difficult for people if they cannot afford the houses for which they have registered because the price is too high.

While houses in the first non-profit social housing project were sold at a reasonable price of VND9 million per square metre, it is rumoured that those in the Kien Hung projects may be increased to VND14 million per square metre, higher than built-for-profit houses in Ho Chi Minh City.

Deputy Minister of Construction Nguyen Tran Nam said this is a paradox because most investors for social housing projects in Northern provinces are now using construction materials they produced themselves.