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The Social Housing Segment Needs Attention

Social Housing

The real estate market is experiencing a phase difference in supply and demand as the luxury segment is facing surplus supply, while the segment of affordable housing and social housing is scarce. In order for the market to develop sustainably, attention should be paid to affordable housing and social housing to rebalance supply and demand.

Good news for social housing

 According to the Ministry of Construction, the National Assembly has approved a package of $87 billion, of which part is the program of supporting the construction of houses for people with meritorious services to the revolution, the remainder is supplemented by the Social Policy Bank to implement social housing support policy. The Ministry of Construction is also requesting the Social Policy Bank to quickly receive funding for social housing support and implement the loan this year.

According to the Ministry of Construction, real estate supply and demand imbalance still occur in some segments. In particular, the supply of social housing, commercial low-cost housing is still much short of real needs.

Social Housing
Segment of social housing

Le Quang Hung, Deputy Minister of Construction, said that in the second quarter of 2017, the country has completed the construction of 184 social housing projects with 72.000 apartments. Localities are continuing to implement 195 projects, with the construction scale of 165.000 units

In Ho Chi Minh City, through a survey of the HCM City Department of Construction and the Ho Chi Minh City Development Research Institute, in the 2016-2020 period, the city will have about 81.000 households in need of social housing.

However, this supply is still insufficient to meet the demand, because now the population of Ho Chi Minh City has reached nearly 13 million people, of which nearly 3 million immigrants, accounting for about 23% of the population. ; there are more than 400.000 students; Every year there are more than 50,000 new married couples … Not to mention the staff, officer, government officials in the city, there are about 139,000 people without housing.

Moreover, a total of more than 402.000 workers and workers are working in the city’s export processing zones and industrial parks, as many as 284,000 people are required to rent accommodation.

Mr. Hung said that the Ministry of Construction is coordinating with ministries, sectors, and localities to remove difficulties in the allocation of budget funds for the implementation of the key social housing program. In particular, to remove administrative procedures, support businesses to borrow money to encourage and mobilize resources for social housing development.

But not enough

Tax support policies, interest rates, especially the $1,3 billion package, social housing segment, affordable housing is firing fire to thaw the real estate market.   However, as soon as the $1,3 billion support package has been discontinued, this segment has fallen into hardship.

Therefore, from Congress, information through a package of $87 million brings expectations for this segment. However, Vu Van Phan, deputy director of the Department of Housing Management and Real Estate Market (Ministry of Construction) said that this amount is still too low compared with the situation and real demand.

According to Phan, in this package of $87 million, $36 million will be allocated to support the construction of houses for people with meritorious services to the revolution. Thus, only $50 million is for low-income people. If account will take into the capital mobilized by the Social Policy Bank, there are only $100 million.

See more: Vietnam Real Estate News

So the segment that many people are interested in is still facing many difficulties,” He emphasized.

Social Housing
The social housing segment is still facing many difficulties

According to reporters, due to the lack of funding support, many social housing developers have proposed to pay land use fees to transfer the project to commercial housing.

We want to build and develop social housing, but the capital is not enough to support, which makes it difficult for both investors and buyers. If we take commercial loans to continue the project, then the price of the product will be higher. Thus, it does not meet the criteria and aspirations of people with low income,” Representative of a project investor in District 9 (HCM City) shared.

Many experts say that due to the lack of supportive capital, the social housing segment is often overlooked by investors. Meanwhile, the demand for this segment is very large, housing for low-income people also to bring social significance. Therefore, this segment needs the attention of ministries in the coming time, thereby rebalancing supply – demand of the real estate market, helping the market to develop more sustainably.

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