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Develop affordable housing, seen from the experience of Korea and Thailand

Experts discuss the afternoon session of the conference

Experts from Korea and Thailand shared their experiences in developing low-cost housing and social housing in the afternoon session of the international real estate conference, held today (6 September ) in Hanoi.

South Korea: Low Price Rental Policy and Housing Funding

According to Noh Jae Keuk, a social housing expert at the Land and Housing Company in Korea, the construction of social housing is greatly supported by the government.

Experts discuss the afternoon session of the conference
Experts discuss the afternoon session of the conference

“We provide low-income housing in the form of rental housing for 10 years. After 10 years, they can be sold to people in the form of social housing. The government will provide financial support for this housing.

“We divided into 10 income groups, first is low income and the top is rich. Each group will enjoy a different policy. Poor people can not even rent a house, so the government will build the rental housing and provide financial support. The rent is about 30% lower than the market.

“For the low income group, we assisted with a slightly lower rent. Groups 3 and 4 are rented 15% lower than the market. For middle-income, not low-income, the Korean government will support lower interest rates so they can buy houses, “said Noh Jae Keuk.

Mr. Noh Jae Keuk also added that Korea has housing funds. This fund is made up of two sources: the government budget and people’s contributions.

“Each month they contribute a fortune to the housing fund, from $ 100 to $ 500. Those who want to buy a house are required to pay for the housing fund. We have a mechanism to encourage people to save for housing funds. As in the Seoul area, housing funds will be widely publicized on indicators and transparency so that people are assured of saving on that housing fund, “said Noh Jae Keuk.

Thailand: Build 1 million cheap homes

Vichai Viratkapan Ph.D (Real Estate Information Center, Housing Bank of the Government) said in Thailand, the government created quite a lot for low-income people when buying a home.

Specifically, the government exchanges with housing development companies so that they can sell houses to low-income people at low prices. In addition, the government also provides capital support to buyers.

“We offer very low interest rates and hold at 3-4% per annum during the first three years. Every month, people pay only 1,500 – 2,000 baht a month, “he said.

Vichai Viratkapan, Ph.D, said the government plans to build 1 million low-cost homes. The program was launched in the second quarter of this year at a cost per unit of about 1 million baht (equivalent to VND700 million).

“We expect that in 2018 there will be 100,000 units available for sale to low-income people. The remaining 900,000 units will continue to be built in the coming years, “he said.

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Develop affordable housing, seen from the experience of Korea and Thailand
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