Proposals for improving social housing policies.
Continuing to apply a loan interest rate of 4.8% per year for buyers and leaseholders of social housing, instead of 5.4% as in the draft, will facilitate access to social housing for middle and low-income earners. This is one of the recommendations from the Ho Chi Minh City Real Estate Association (HoREA) in its comments on the draft amendment to the Decree on social housing.
At the same time, the Association believes that the authority to determine interest rates should be the State Bank of Vietnam instead of the Social Policy Bank to ensure consistency in management. In addition, the Association also proposes that the Social Policy Bank be allowed to provide loans to investors in social housing projects soon, instead of waiting until after 2030.
Removing credit barriers for buyers of social housing is essential.
Removing obstacles for buyers of social housing.
Addressing credit difficulties for social housing buyers is crucial. According to reports, many social housing projects in Hanoi only have a few hundred units, but the number of applications has already reached thousands. This will put considerable pressure on upcoming lottery draws for social housing. Meanwhile, in other localities, despite a relatively abundant supply of social housing, many people with lower incomes find it difficult to purchase social housing due to restrictive eligibility criteria.
To purchase social housing, people must prove their income, which must not exceed 15 million VND per month for individuals and 30 million VND per month for households. In addition, buyers must also go through procedures to verify their assets and residence. This leads to a situation where social housing is not sufficiently accessible, while high-priced housing remains unaffordable. Many solutions are being proposed to address this issue.
Recently, the Ministry of Construction proposed raising the income threshold for purchasing social housing to 20 million VND/month for single individuals and 40 million VND/month for married couples. Similarly, Hanoi recently proposed lowering the interest rate for social housing loans to 4.8%/year, aiming to provide better support for homebuyers. This will make social housing more accessible to those in need.
Mr. Nghiem Quoc Huy from Hanoi said: "My current income is over 15 million VND. Although it's high, I have to cover many living expenses and other costs."
Mr. Ha Quang Hung, Deputy Director of the Department of Housing and Real Estate Market Management, Ministry of Construction, shared: "We will take note of this and conduct research in the near future to regulate an income level that is appropriate for the people."
Improving the quality of social housing also needs to be prioritized, so that even low-cost housing does not put pressure on urban infrastructure, both now and in the future.
Mr. Nguyen Chi Thanh, Vice Chairman of the Vietnam Real Estate Brokers Association, stated: "We must change the mindset that social housing and housing for low-income earners are of low quality. We need to create conditions to support infrastructure development and invest in social housing areas, hundreds of hectares in size, with full amenities: parks, schools, medical facilities, etc."
In Hanoi, although thousands of apartments from six projects are scheduled for sale this year, this number is still considered too small, like a drop in the ocean. However, according to experts, even a small number is better than nothing, because once social housing projects are launched, they will create a "counterbalance" to the high-priced housing segment currently flooding the market, creating competition that will force developers to reconsider their selling prices if they don't want to face the situation of persistently high prices that buyers cannot afford.
At last week's meeting of the Central Steering Committee on Housing Policy and Real Estate Market, Prime Minister Pham Minh Chinh affirmed that developing the real estate market and social housing is a major issue, a national and people's matter of great importance, requiring many comprehensive solutions, such as reducing real estate prices, increasing supply to meet demand, resolving outstanding projects, promoting social housing, reducing land prices, reducing costs, and addressing infrastructure issues related to transportation, electricity, water, and telecommunications. In addition, the Ministry of Construction is researching for the Government to issue a resolution assigning a number of capable, conscientious, and talented enterprises to implement social housing projects based on the principle of harmonizing the interests of the State, the people, and the enterprises.
Source: https://vtv.vn/go-kho-nha-o-xa-hoi-100250929111225936.htm
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