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How Will HCM City Make VND 100 Million House?

Real Estate

Talking with leaders of Binh Duong province, Secretary Dinh La Thang said that although the Department of Construction and the Labor Confederation of Ho Chi Minh City have learned to report on the model of VND 100 million houses in Binh Duong, so far TP HCM has not done this yet.

The city has also directed the relevant units to consider adjusting the local planning in Tan Thuan Export Processing Zone and adjacent areas, thereby setting up a land fund for the construction of social housing for workers in various forms. : Buy, rent, hire purchase and related issues.

Read more: Vietnam Real Estate News

Meanwhile, in Binh Duong up to now, many enterprises have registered to develop social housing, of which two state-owned companies in the area have a lot of experience developing socially Becamex IDC and General Corporation Binh Duong Import – Export – Production Company Limited (3-2). At the same time, some developers of commercial housing development projects are also converting their capacities into POns for low-income workers to meet the needs of the market.

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construction works social housing

According to the Binh Duong Department of Construction, up to now, over 15,000 workers have been living in the NEZ invested by Becamex IDC. At the beginning of April 2015, Becamex IDC inaugurated and put into operation 4,895 apartments in 4 provinces in the province: Thuan An Town (752 apartments), Thu Dau Mot Town (2,435 apartments), Ben Cat Town (1,388 units) and Bau Bang district (320 units). This is the first phase of Binh Duong Province Project completed after 2 years of construction and handed over to customers.

It is known that each apartment is 5m wide and 4m long including 1 mezzanine with a total area of 30m2 in the apartment from 2 to 5 floors, corridor, the common path between 2 apartments is 1.4m. Particularly, the first-floor apartment (ground floor) is 5m wide and 9.4m long, so the frontage can be used for both living and business purposes or serving the residents in the apartment area.

Thanks to the adjustment of the first floor can serve the commercial purpose so investors are easy to pay back, maintaining the criteria of affordable housing for the upper floor. At stage 2 of the project, Becamex IDC boldly adjust the area of the apartment up to 50 sqm and height up to 15-16 floors to continue to meet market demand.

Tran Thanh Liem, the vice chairperson of Binh Duong People’s Committee, said that the development of PLWH beyond the goal of creating thousands of shelters for low-income people is to improve the efficiency of workers’ Developing sustainable industries and attracting investment into the province.

A more profound purpose, NXXH is a cluster of urban development sustainable development in overall planning and urban development of Binh Duong, contributing to Binh Duong province to become the first class city before 2020.

According to the provincial leaders, in order to meet the demand for housing for the urban poor, cadres, civil servants, and workers, the province has decided to approve Becamex’s project to build more than 64,000 apartments. Total investment is nearly  VND 11,000 billion.

The scheme began in 2012, so far has handed over 5,000 apartments to the people with a selling price of only VND 90 million / apartment with 30 sqm. Stage 1 of the project will build 10,000 apartments area from 50 to 70 sqm for middle-income people. The remaining apartments will continue to be built in areas with many industrial parks.

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building social housing

In order to have the land fund to build affordable housing, Binh Duong has taken many steps ahead. Specifically, it is compulsory for industrial zones to set aside housing for housing, allowing transfer after 5 years instead of 10 years as previously stipulated by the Government and social housing.

After receiving clean land, investors only charge the construction price, while the cost of land, compensation, and construction of infrastructure inside and outside the apartment is supported by localities such as road construction, kindergarten, public Park, commercial and service area, garage, health care, entertainment services …

With 30 sqm social houses (20 sqm, 10 sqm), the price is over VND 100 million, buyers only have to pay 20%, the rest is borrowed from the VND 30,000 billion credit package and pay VND  1-2 million per month.

Thus, according to leaders of Binh Duong province, with strong support from local authorities, the remaining investors have to speed up the construction time for workers, Low income. They have a house to stay early.

Mr.Dinh Duy Trinh, Managing Director of Viet Land Land Company, calculated that HCM City could completely build a low-cost social housing like in Binh Duong if the state supported the preferential loans from Government support package. Like Binh Duong, the state needs to support investment in connecting infrastructure, building utilities such as electricity, roads, schools, stations, and markets.

According to calculations of Mr. Trinh, if the low-rise buildings such as Binh Duong, no elevator, construction costs about 4 million/ sqm of floor construction. Thus, an apartment with a minimum area in accordance with social standards of the Ministry of Construction is 25 sqm, the cost is about VND 100 million/unit.

Talking about whether HCM City can do the same as Binh Duong, Mr. Le Hoang Chau, chairman of the HCMC Association of Real Estate, said that the city can completely make VND 100 million standard apartment Of the Ministry of Construction (minimum area of 25 sqm).

But to do according to Mr. Chau, Ho Chi Minh City need a clean land fund, free land use, the height of about 4-5 floors back, no elevator. The state must support 100% of capital to invest in infrastructure such as roads, electricity and water supply, etc. It may be land in farms in Cu Chi, Hoc Mon, Can Gio and Binh Chanh, The same apartment will help lower the price, but the quality is guaranteed.

In addition, the Ministry of Construction will also need to support the design of social housing so that localities can take samples without having to spend on design. Authorities and most importantly the Ministry of Construction should support the maximum policy, help shorten the time to carry out administrative procedures, as simple procedures, the shorter the time, the more help sell off.

In the coming time, HCM City and Binh Duong Province will cooperate to study the development of adjacent land between two localities to invest in the housing development in this model. In parallel, Ho Chi Minh City will soon study the promulgation of more flexible mechanisms to regulate the object of buying social housing. Because there is still a mechanism for asking, “queue waiting for distribution”, people have trouble ringing in the purchase and transfer.

According to Mr. Tat Thanh Cang, Vice Chairman of HCM City People’s Committee, this flexible mechanism will diversify the financial mechanism for buying objects, such as the purchase of right from the beginning, buy at different terms, hire purchase. Also, with housing projects worth VND100million built in bordering locations. People, living near Binh Duong, can buy houses in Binh Duong.

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How Will HCM City Make VND 100 Million House?
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