Demand high for cheap homes

Saturday, Dec 20, 2014 11:26

Accommodation for workers of the Duong Huy Coal company in Quang Ninh Province. Demand for low-priced houses is very large in the northern province, but supply remains modest. — Photo

HA NOI (Biz Hub)— The northern Quang Ninh Province faces a large demand by low-income earners and workers for houses, as the total number of labourers is expected to reach 800,000 by 2020.

However, the supply of social housing projects remained modest, according to Department of Construction Deputy Director Nguyen Manh Tuan.

No commercial housing projects were converted into social housing projects in the province thus far. Meanwhile, there were only few low-priced commercial housing projects.

Currently, only two projects at Ha Long Marina Urban Area invested by Syrena Viet Nam, a member of BIM Group, are eligible to borrow from the government's VND30 trillion (US$1.4 billion) support package.

However, experts disclosed that the disbursement of the $1.4 billion support package remained slow due to the scarce low-priced housing supply and complicated procedures for loan acquisitions from the package.

Do Van Khanh, a representative from the provincial Labour Federation, said that the demand of accommodation for workers and low-income earners is very large in the province, which has 11 industrial zones and many industrial clusters.

However, incomes of local labourers remained low, which only amount to an average of roughly VND3.5 million–4.5 million ($165–212) per month. These salaries are not enough for residents to set aside money to purchase houses – even low-priced apartments, he added.

Do Thi Loan, deputy director of Vietcombank Quang Ninh, pointed out that complicated procedures for preferential loans from the support package has been one of the major problems.

Statistics from the State of Viet Nam's branch in Quang Ninh Province showed that 56 individuals have been provided loans from the package, with a total outstanding loan of VND33.5 billion ($1.58 million), as of the end of October.

Syrena Viet Nam Sales Manager Pham Van Nam noted that property investors would cooperate with banks to support home-buyers in completing the loan procedures. — VNS

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