A home is for living in!

Speaking at a recent working session on social housing development with the Party Committee and the Government, General Secretary and President To Lam affirmed: "Houses are for living, not for business or asset accumulation." This is not only a requirement to adjust housing policies, but also a direction for restructuring the real estate market towards a healthier and more sustainable direction. Furthermore, this message opens up hope for opportunities for secure housing for millions of working people.

In the context of continuously escalating housing prices, far exceeding the incomes of the majority of workers, the statement by the General Secretary and President has received widespread support in society. The fact that the head of the Party and State emphasized this shows that housing policy is being re-evaluated for its true nature, instead of being caught in a cycle of speculation and asset accumulation. This also means that the real estate market will have new impetus to operate more effectively.

In line with the above direction, the General Secretary and President also emphasized that from now until 2030, rental housing must be identified as a "strategic pillar." After many years where the market almost exclusively focused on selling houses for ownership, the rental model has developed almost entirely spontaneously. The consequence is that many urban areas are sparsely lit, many apartments are left vacant waiting for price increases, while millions of workers and migrant laborers still live in cramped rented accommodations lacking basic living conditions.

If rental housing becomes more accessible, affordable, and ensures a good quality of life, the pressure to "buy a home at all costs" on millions of urban residents will automatically decrease. This is also a model many developed countries have adopted to cool down housing prices and create flexibility in the labor market. South Korea, Singapore, and many Nordic countries have demonstrated that when rental housing is properly invested in and supported by clear policies, workers not only have stable housing but also easy access to their jobs – something that a purely home-ownership market struggles to achieve.

To put the directive "preventing housing from becoming a speculative asset" into practice, we need to look directly at past lessons: many sound policies on social housing have been delayed due to prolonged obstacles in the most crucial areas: land allocation, procedures, and capital. Regarding land allocation, it is essential that localities allocate clean land in suitable locations for social housing and rental housing, instead of pushing them to areas far from the city center and lacking infrastructure. Regarding procedures, investment and project approval processes need to be substantially streamlined to allow businesses to participate more quickly.

Regarding capital, a key factor is a long-term credit mechanism with reasonable interest rates for both buyers, renters, and housing development businesses, ensuring affordable housing. Without a stable source of capital, it is difficult to establish a truly functioning rental housing market as envisioned in the "strategic pillar" plan. This must be accompanied by solutions to curb speculation, increase transparency in the real estate market, and strictly control land hoarding, abandoned housing, and price manipulation.

An equally important factor is the responsibility of local authorities for housing development outcomes linked to specific targets – preventing situations where industrial zones develop rapidly but workers are still forced to live in temporary accommodations, or where urban areas expand but young people lack opportunities for stable housing. When housing policies are implemented with specific responsibilities and transparent mechanisms, housing will return to its core value: serving the housing needs of the people. This is not only the success of a social welfare policy, but also the foundation for sustainable urban and economic development.

MINH DUY

Source: https://www.sggp.org.vn/nha-la-de-o-post853657.html