Ready to advance money to build 1 million social housing units per year

(CLO) Besides "accusing" Hanoi of being slow in approving the policy of the social housing project at 393 Linh Nam, Hoang Mai district, Mr. Nguyen Huu Duong, Chairman of the Board of Directors of Hoa Binh Company Limited, also shared: Ready to pay in advance to build 1 million social housing apartments.

Ready to advance money to build 1 million social housing units per year

According to Mr. Nguyen Huu Duong - nicknamed the "Beer Street" tycoon, although the island nation has a modest area, 100% of Singaporeans currently have houses. Of which, 85% of people live in social housing projects, with prices only 1/3 of commercial ones.

Meanwhile, in Vietnam, the demand for social housing is very high. A report by the Vietnam General Confederation of Labor shows that there are about 22.5 million people in need of housing. Most of them have average and low-average incomes and can only afford to buy affordable housing and social housing.

Mr. Nguyen Huu Duong, Chairman of the Board of Directors of Hoa Binh Company Limited. (Photo: VV)

However, the social housing segment is in very short supply, especially in big cities like Hanoi and Ho Chi Minh City.

Therefore, Mr. Duong believes that not only Hoa Binh Company Limited, but also many other enterprises are eager to invest in the social housing segment. Mr. Duong even affirmed that he is willing to pay in advance to carry out the project.

“I have repeatedly asked the authorities to allow us to build 1 million social housing units each year without the government having to pay in advance,” said Mr. Duong.

To clarify this issue, Mr. Duong shared: Provincial and municipal People's Committees only need to have clear plans for social housing land. For example, Hanoi has planned 5 concentrated social housing areas. After that, businesses can pay in advance to clear the land, develop infrastructure and carry out social housing projects.

When the apartments are completed and sold, localities can collect VAT and other taxes from home buyers, construction material suppliers, construction companies, etc. and pay the tax amount to the investor who advanced the money in advance. Mr. Duong affirmed that this issue is completely feasible if implemented.

Social housing price in inner city is 20 million VND/m2, in suburbs is 15 million VND/m2

Regarding the selling prices of social housing, Mr. Duong said that for projects located in the inner city, a price of about 20 million VND/m2 is reasonable. Meanwhile, for projects located further away, in the suburbs, 15 million VND/m2 is enough for investors to make a profit.

“With the above price, every Vietnamese person has the opportunity to buy a house. For example, a social housing project in the suburbs costs 15 million VND/m2. The minimum area of ​​an apartment is 30m2, one bedroom and one bathroom costs only 450 million VND, very suitable for workers with average income. Even low-income people who borrow money to buy a house do not have too much financial pressure,” said Mr. Duong.

However, some opinions say that because of the low price, the quality of social housing projects will not be equal to that of commercial housing projects.

Denying this view, the Chairman of Hoa Binh Company Limited affirmed: With current housing regulations and standards, the quality of social housing and commercial housing is the same. Even with experienced and dedicated investors, the quality can be better than commercial housing.

“With the current situation of housing prices, especially apartment prices, increasing rapidly, developing social housing projects is a good solution to curb housing prices,” said Mr. Duong.

Mr. Nguyen Huu Duong, Chairman of the Board of Directors of Hoa Binh Company, highly appreciated the initiative of Ho Chi Minh City, which is to use any land that is left fallow for social housing. However, Mr. Duong said that the land fund in big cities, especially Ho Chi Minh City, is very limited, not much, so it is difficult to implement enough projects to meet the market demand.

In addition, Mr. Duong regretted that in the recent National Assembly session, there was a Resolution to create more land for businesses to build commercial housing, but there was no Resolution to create land for social housing. Therefore, in the coming time, Mr. Duong suggested that the State prioritize the development of this type of housing.

Source: https://www.congluan.vn/dai-gia-duong-bia-san-sang-ung-tien-truoc-thuc-hien-1-trieu-can-nha-o-xa-hoi-moi-nam-post326115.html