Check out a series of projects in the East of Hanoi that will be 'launched' at the end of the year, apartments dominate the Binh Duong market

Proposals to implement preferential social housing packages funded by bonds, a series of projects launching at the end of the year, and apartment buildings continuing to dominate the Binh Duong market… are the latest real estate news.

Latest real estate news: In the final months of 2024, the East is overwhelming the West of the capital in terms of new apartment supply. (Source: Business & Information)

Proposal to implement social housing incentive package from bond capital

In the draft Resolution on preferential capital for social housing development, which is being consulted with ministries and branches before submitting to the Government for promulgation, the Ministry of Construction proposed implementing a VND100,000 billion preferential package for social housing loans from bond capital, applicable for 5 years. This is the first time the Ministry of Construction has proposed applying a preferential package for social housing by issuing bonds.

According to the draft Resolution, the interest rate on the VND 100,000 billion preferential credit package for purchasing social housing will be the same as the interest rate for loans to poor households, as decided by the Prime Minister in each period. The disbursement period for the VND 100,000 billion preferential credit package will continue until the entire package is disbursed, but not exceeding December 31, 2030.

The allocation of preferential credit packages for social housing development is expected to be as follows: Approximately VND 16,500 billion will be allocated annually from 2025 to 2029; and approximately VND 17,500 billion will be allocated in 2030.

To implement the 100 trillion VND preferential credit package, the Ministry of Construction proposed that the Government assign the Ministry of Finance to thoroughly review and assess the feasibility of issuing government bonds to provide capital to the Social Policy Bank for lending to purchase, lease-purchase, build, renovate, and repair housing.

The draft proposes that the Ministry of Planning and Investment coordinate with the Ministry of Finance and relevant ministries and branches to allocate government bond capital for social housing development. In the process of appraising investment policies for industrial park infrastructure projects, it is necessary to appraise the allocation of land for the development of workers' housing according to the provisions of the Housing Law.

In addition, the Ministry of Construction proposed that the Government assign the State Bank of Vietnam to coordinate with the Social Policy Bank to review and resolve difficulties and obstacles in order to effectively implement the loan program to support social housing.

The Social Policy Bank develops a plan for issuing government-guaranteed bonds, submits the application for a guarantee to the Ministry of Finance for submission to the Prime Minister for approval, and grants the government guarantee to the Social Policy Bank to organize the issuance of government bonds and manage the capital in accordance with regulations.

At the same time, localities must have specific mechanisms and solutions to shorten administrative procedures for project establishment, approval, land allocation, land lease, site clearance, construction investment procedures, etc. to support and encourage businesses to invest in construction projects, create supply for the market and take advantage of preferential capital sources for social housing development.

The Resolution aims to ensure capital for the implementation of the investment project to build at least 1 million social housing units for low-income people and industrial park workers in the 2021-2030 period. Thereby, creating conditions for everyone to have a place to live, providing housing support for social policy beneficiaries, low-income people, and poor people facing housing difficulties, contributing to political stability and ensuring social security.

Series of apartment projects launched at the end of the year

In the final months of 2024, the East is dominating the West of the capital in terms of new apartment supply, with many projects officially launched or released during this period.

Most recently, real estate developer MIK Group introduced to the market the Imperia Signature Co Loa project in the Vinhomes Global Gate metropolis (Dong Anh, Hanoi). The first subdivision, The Continental, of the Imperia Signature product line, will be introduced in the near future with two 45-storey towers, expected to supply the market with more than 1,700 apartments. The expected selling price is from 79 million VND/m2 (excluding VAT and maintenance costs).

In mid-November, the East of Hanoi continued to welcome a new project, The Paris subdivision of The Metropolitan (Vinhomes Ocean Park).

In early November, two apartment buildings S2.10 (523 apartments) and S2.17 (497 apartments) in the Sapphire subdivision, Vinhomes Ocean Park 1 were also officially opened for sale.

For over a decade, the West has consistently dominated the supply of real estate in Hanoi, particularly apartment buildings. The West has also witnessed numerous real estate booms in the capital's market, ranging from land plots and low-rise properties to apartment complexes.

However, in the past 3 years, the market balance has been shared by the East of the city, the West is no longer dominant. Savills's 3rd quarter 2024 market report said that in the first 9 months of 2024, Hanoi recorded more than 12,000 newly launched apartments, mainly concentrated in the West and East of the capital. Also according to Savills, it is expected that in the last quarter of 2024, Hanoi will receive an additional 9,700 new apartments, of which 88% will come from the next phases of large projects, mainly concentrated in the metropolitan areas in the West and East of the city. Thus, the West and East of Hanoi are sharing the "market share" in the capital's real estate market, in a balance of power and counterweight.

Hai Duong builds regulations on support mechanisms for implementing social housing construction investment projects

At the regular meeting of the Hai Duong Provincial People's Committee held on the morning of December 2nd, Chairman Le Ngoc Chau agreed to develop regulations on the mechanism for supporting the implementation of social housing construction investment projects in Hai Duong province until 2030.

According to the report of the Department of Planning and Investment of Hai Duong province, the Regulation on support mechanism for implementing social housing construction investment projects in Hai Duong province until 2030 stipulates the support mechanism for implementing social housing construction investment projects in Hai Duong province until 2030 invested by non-state budget capital and Trade Union financial sources.

This regulation proposes that Hai Duong province support all compensation and site clearance costs within the scope of social housing construction investment projects (not applicable to the cases specified in Point c, Clause 4, Article 84 of Housing Law No. 27/2023/QH15); support investment costs for construction of site leveling items according to detailed planning approved by competent authorities within the scope of social housing construction investment projects. The support amounts are not included in the costs to determine the selling price, rental price, and lease-purchase price of social housing.

Projects with investment phases will be considered for support according to the project's investment phases. In case of investment in social housing construction on land fund for independent social housing development, the investor is responsible for advancing funds to carry out compensation, site clearance and investment in construction of site leveling items.

At the same time, it is proposed that the Provincial People's Committee support compensation costs, site clearance and construction investment costs for site leveling items after the investor completes the construction of technical infrastructure works of the project according to detailed planning, designs appraised and approved according to regulations and inspected and confirmed by competent State agencies for implementation value.

In the case of housing construction investment projects that have been approved by competent authorities for investment policy and are in the process of project implementation as of the effective date of this regulation, but the project's compensation and site clearance costs have not been deducted from land use fees or have not been allocated to the selling price, rental price, or hire-purchase price of social housing or have not been reimbursed in other forms according to the provisions of law, they shall be entitled to full support for site clearance costs.

Social housing construction investment projects that have been approved in principle by competent authorities before the effective date of the resolution but have not yet been allocated land by competent authorities to implement the project shall be entitled to support for construction investment costs for site clearance items according to detailed planning approved by competent authorities within the scope of the social housing construction investment project.

Chairman of Hai Duong Provincial People's Committee Le Ngoc Chau agreed with the content of the report of Hai Duong Department of Planning and Investment. At the same time, he affirmed the necessity of issuing policies to support the implementation of social housing projects. This is a policy in line with the Party and State's guidelines and policies, in line with the province's social housing development goals, targeting low-income workers.

The Chairman of the Hai Duong Provincial People's Committee requested the Hai Duong Department of Planning and Investment to take into account the opinions at the meeting and review policies to ensure compliance with legal regulations and local conditions. The content should clearly define the rights and responsibilities of investors and the responsibilities of state agencies. The Department of Construction should study and propose social housing planning, including the minimum and maximum number of floors. Social housing projects that do not have investors must comply with new legal regulations.

Apartments continue to "dominate" the Binh Duong market

Apartments in the "affordable housing" price range continue to dominate the Binh Duong real estate market in the last months of the year.

Batdongsan.com.vn's October real estate market data shows that apartments are a segment with strong growth in both interest and number of listings. Specifically, the interest in apartments in the buying and selling market increased by 5% compared to September, and the number of listings also increased sharply, reaching 12% compared to the previous month. Notably, this growth momentum continues the growth rate of previous months.

Accordingly, according to market data from Batdongsan.com.vn, in the first 9 months of 2024, in both the buying and selling market and the rental market of Binh Duong, apartments always lead in terms of interest. Specifically, in the buying and selling market, apartments lead in terms of interest with a growth rate of 6% compared to the beginning of the year. In the rental market, apartments far surpass all other segments in terms of interest, growing by 33% compared to the beginning of the year.

In particular, interest is concentrated in apartments located near Ho Chi Minh City, specifically in Di An and Thuan An. These are also the two areas with the highest levels of interest in apartments in the Binh Duong market, with year-on-year growth figures of 20% and 7% respectively.

Regarding the above reality, Mr. Dinh Minh Tuan, Director of Batdongsan.com.vn said that Binh Duong apartments attract the attention of consumers because the real demand for housing in this market is very large. Binh Duong is the industrial capital of the South, so the demand for living is large, the immigration rate and population growth are high.

According to the General Statistics Office, Binh Duong's population density and immigration rate are 26.4%, ranking first in the country. Compared to numerous other satellite markets, Binh Duong is a province close to Ho Chi Minh City, serving as a gateway for trade.

The average price of apartments in Binh Duong is also lower than that in Ho Chi Minh City, when the average price of apartments in the three hot spots of Di An, Thuan An and Thu Dau Mot only fluctuates between 28-33 million VND/m2. With the advantage of living, the level of interest in Binh Duong apartments mainly comes from the needs of local and neighboring people.

Data from Batdongsan.com.vn clearly shows that, geographically, interest in apartments in Binh Duong comes from two main customer groups: Binh Duong and Ho Chi Minh City. Customers from Ho Chi Minh City account for 49%, while those from Binh Duong account for 33%.

Source: https://baoquocte.vn/bat-dong-san-moi-nhat-diem-danh-loat-du-an-phia-dong-ha-noi-bung-hang-cuoi-nam-chung-cuom-chiem-song-thi-truong-binh-duong-295938.html