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More policy support in social housing development

Việt NamViệt Nam19/12/2023

The development of social housing continues to receive "support" from policy with the recent passage of the Housing Law (amended). Accordingly, home buyers and investors are relieved of difficulties and receive many incentives with a more open mechanism.

Social housing developers and home buyers are "unstuck" from new regulations in the recently passed Housing Law (amended) - Photo: VGP

Experts in the real estate sector believe that the development of social housing will continue to have more positive results with "support" from policies.

In particular, the recent passing of the Housing Law (amended), with many new regulations "removing difficulties" for buyers and investors developing social housing projects, is expected to create attractiveness, attracting more businesses to participate in developing the social housing segment, as well as increasing accessibility to this type of housing for low-income people who have the ability and conditions to buy a house.

According to the revised Housing Law, social housing developers will receive a series of "real" incentives with a transparent mechanism.

Specifically, the allocation of 20% of social housing land fund will be the planning responsibility of each locality.

This regulation not only solves the current shortcomings in land funds for social housing development for investors, but also benefits home buyers because through understanding information about people's needs and future socio -economic development orientations, localities will have housing development policies and allocate truly suitable land funds.

At the same time, the investor of the social housing project will be exempted from land use fees and land rent for the entire land area of the project (except for the land area for investment in construction of business, service, commercial and commercial housing works, accounting for a maximum of 20% of the total land area in the project) without having to carry out procedures for determining land prices, calculating exempted land use fees and land rents, and procedures for requesting exemption from land use fees and land rents.

Thus, the time for implementing investment procedures for social housing projects will be shortened by about one year. In addition, applying profit margins only to the social housing area will help investors gain more profit from developing social housing through the commercial area, which is a plus point, increasing the attractiveness for investors.

In addition, the new Housing Law has been amended and supplemented with very important and practical mechanisms and policies, "removing" difficulties in the process of access for people when buying, renting, or leasing-purchasing social housing.

This is also the "point" expected to create a push to promote the disbursement of the 120,000 billion VND credit package, adding hope to people's hope of buying houses, bringing cash flow to businesses, in order to promote the recovery process of the real estate market. Specifically, the new Housing Law has 3 progressive points, removing difficulties for people, solving the situation of "both surplus and shortage".

Firstly, the regulation that home buyers only need to "not own a house in the province or centrally-run city where the investment and construction project is located" has removed obstacles for state management agencies in the process of confirming documents.

Second, the income requirements for purchasing or leasing social housing have become more flexible. They are no longer limited to those who do not pay personal income tax as they are now.

Third, the recently passed Housing Law 2023 has abolished the residence condition for subjects eligible to buy or rent-purchase social housing.

Although it will be at least another year before the new regulations in the Housing Law officially take effect, these new points have somewhat affected the psychology of home buyers, as well as the development plans and orientations of investors.

Recently, a series of social housing projects have been registered by enterprises with competent authorities for implementation.

The Government , agencies, departments and branches will continue to research and issue Decrees and directives to remove difficulties, obstacles and legal bottlenecks for this type of housing.

Real estate experts believe that in the coming time, developing and promoting the social housing sector will be the key goal of many real estate businesses. There will be more real estate "giants" joining the social housing race, gradually improving the supply for the market.

Above all, in the context of many real estate projects being stuck in legal issues and having low liquidity, social housing, a type of property that is always in high demand and can bring immediate cash flow, is the "rescue" solution for businesses.

According to Toan Thang/ Chinhphu.vn


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