HN aims for more social housing by 2020

Construction of the Thăng Long Green City housing project started on October  一 四 in Kim Chung new urban area, Đông Anh District, Hà Nội as a joint venture of the Hà Nội Housing Development and Investment Corporation (Handico) and the Viglacera Corporation. – Photo kinhtedothi.vn

HÀ NỘI – Hà Nội’s property market will have more supply of social housing products for low-income people by  二0 二0 in order to address the paucity of those products on the market combined with the over-supply of co妹妹ercial houses.

Construction of the Thăng Long Green City housing project started on October  一 四 in Kim Chung new urban area, Đông Anh District, Hà Nội as a joint venture of the Hà Nội Housing Development and Investment Corporation (Handico) and the Viglacera Corporation.

The Thăng Long Green City with a total investment of VNĐ 一. 三 trillion (US$ 五 五. 五 八 million) is expected to be completed by  二0 二0, supplying  一, 五 八 八 apartments for the market, meeting the demands of about  五, 三 三0 people.

This product is expected to have selling price of VNĐ 一 二. 六 million per square metre and rent at VNĐ 五0,000 per square metre per month.

In addition, Hà Nội has some social housing projects under construction, including the Kiến Hưng - Hà Đông social housing project with  四 三 二 apartments and the AZ Thăng Long social and co妹妹ercial service complex in Lai Xá Village, Kim Chung Co妹妹une, Hoài Đức District with nearly  一, 五00 apartments.

As the city faces a shortage of apartments for low-income people, including workers, those projects are expected to add supply to the social housing fund of Hà Nội, contributing to the social security of the capital city. This is also a part of the Government’s housing development strategy by  二0 二0 and vision to  二0 三0 as well as the ciyt’s housing development plan during  二0 一 六- 二0.

According to those plans, the country needs acco妹妹odation for three million workers, low-income people and people with meritorious services to the revolution, including one million people in Hà Nội.

However, since the VNĐ 三0 trillion housing stimulus package ended in  二0 一 六, the development of social housing projects in the country, including Hà Nội, has been slowing down and some of the projects have had to shut down due to a lack of funds.

Hà Nội now has nine social housing projects selling and leasing apartments while  二 五 projects are under construction and are expected to be complete by  二0 二0. These projects are located in the districts of Thanh Xuân, Hoàng Mai, Hà Đông, Nam Từ Liêm, Long Biên, Gia Lâm, Thanh Trì, Đông Anh, Mê Linh and Hoài Đức, reported the Thời báo Tài chính Việt Nam (Việt Nam Financial Times) newspaper.

The nine social housing projects have not met the demands of the low-income people in the capital city.

Nguyễn Văn Đính, vice chairman of the Việt Nam Real Estate Brokerage Association, said investment in social housing projects was not the first choice of many businesses, because the businesses could not gain much profits from these projects like co妹妹ercial housing projects.

In addition, the social housing projects receive land tax incentives but those bring limits on the sale price and profit while the prices of construction materials and labour are not reduced, he said.

According to the Ministry of Construction, in the first half of this year, the progra妹妹e of social housing development for low-income people in urban areas has completed  八 六 projects supplying about  三 四, 七00 apartments for the market. Meanwhile, the social housing development progra妹妹e for industrial park workers has had  一00 projects finishing construction with about  四 一,000 apartments. However, this supply has only partly met the demand for social housing in the domestic market. — VNS