An overview of 143 Tran Phu project. Photo SDU

HA NOI (Biz Hub) —▌Ha Noi People's Committee has agreed to convert part of a proposed commercial housing project at 143 Tran Phu Street in Van Quan Ward, Ha Dong District, into social housing, according to the Ministry of Construction.

The approval makes the 11.300 sq.m building the first project to be approved for transformation under the Ministry of Construction's initiative to change commercial real estate projects to social housing in an effort to warm up the property market.

The Tran Phu project, which is backed by Song Da Urban Joint Stock Company, will consist of 512 apartments in 35 storeys.

Being changed to social housing project, enables investors to assess preferential loans and be exempt from land-leasing fees.

However, they will have to set aside the first floor for community activities, and the second and third floors for kindergarten, first aid and fitness centres.

The investor is also responsible for building infrastructure such as roads and green space.

Upon completion, the apartment building will be sold to low-income earners. The project will cost an estimated VND507 billion (US$24 million).

The municipal people's committee asked the investor to start building in the second quarter of this year and finish by the end of 2015.

The committee also approved a similar proposal for the AZ Thang Long apartment building and Trung Van residential area in Tu Liem District.

About 10 projects in the city are expected to get similar permits this year. About six will start within a year.

Statistics from the Ministry of Construction reveals that 50 property investors nationwide propose to resize apartments or transform projects to social housing. — VNS.