Today: 25/09/2023 10:00:59 (GMT+7)

Prime Minister calls for more affordable housing

Prime Minister Pham Minh Chinh issued statements Monday urging property developers to combat the housing shortage by building more affordable homes that “meet the needs of more people.”

Property developers should focus on social housing and workers’ housing instead of high-end properties, according to the Prime Minister, who added that "real estate companies should restructure their products and market segments to lower housing and land prices."

Prime Minister, more affordable housing, Pham Minh Chinh, property developers,  housing shortage, more affordable homes, high-end properties

Apartment blocks and office buildings along Hanoi Highway and Metro line No. 1 in Ho Chi Minh City in February 2023.

PM Chinh asked ministries to clear away legal obstacles facing property projects, especially those that issue corporate bonds, use bank loans, or mobilize capital from home buyers.

He urged the State Bank of Vietnam to quickly implement an approved credit package of VND120 trillion (US$5.1 billion) for the development of social housing and housing projects for workers, and the renovation of old apartment blocks.

Under the package, loan interest rates for buyers or developers of social housing projects and worker housing projects will be 1.5-2% lower than average bank lending rates. The central bank has also been tasked with lowering interest rates at commercial banks.

The increasing costs of land, materials, labor, legal procedures, and interest rates, as well as speculation, have all been pushing housing prices up for years, according to experts.

In recent market reports, the Ministry of Construction has confirmed that housing prices are currently unaffordable for many people.

The real estate market, which contributes some 11% to Vietnam’s GDP, is dormant mainly because of credit and corporate bond tightening, high lending interest rates, and legal bottlenecks regarding property development and ownership.

Construction Ministry proposes $4.7B social housing credit
The Ministry of Construction has proposed that the National Assembly and the Government set aside a credit package of VND110 trillion (US$4.66 billion) for the development of social housing.
Settling down thanks to social housing credit program
(BGO) - Implementing the Government’s Decree No. 100/2015/ND-CP dated October 20, 2015 on social housing development and management (Decree 100), since 2018, the Vietnam Bank for Social Policies’ branch in Bac Giang province (VBSP Bac Giang) has offered loans under the social housing program.
Quang Ninh begins construction of social housing project with nearly 1,000 apartments
The People’s Committee of Ha Long City in Quang Ninh Province commenced construction of a social housing project for nearly 1,000 apartments in Ha Long City’s Hong Hai Ward and Cao Thang Ward on October 30.
Housing development plan approved in Bac Giang
(BGO) – The People’s Committee in Bac Giang province has issued Decision to approve for the housing developing plan in 2022 and 2021 – 2025 period in the province. Accordingly, Bac Giang will implement 379 housing projects in 2022, including 356 urban and residential area projects and 23 apartment ones.
At least 1 million housing units for low-income earners to be built by 2030
Prime Minister Pham Minh Chinh has asked the Ministry of Construction to work together with other ministries and agencies to draft and submit a plan on building at least 1 million apartments of social housing for workers and low-income earners by 2030 to the Government in August.

Source: VnExpress

Prime Minister, more affordable housing, Pham Minh Chinh, property developers, housing shortage, more affordable homes, high-end properties
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