Việt Nam expects a boom in affordable homes for low-income earners

Saturday, Apr 20, 2024 09:46

A social housing project under construction in Bắc Giang Province. — VNA/VNS Photo Tuấn Anh

Việt Nam expects a boom in affordable homes for low-income earners due to improving legal frameworks that are paying the way for removing bottlenecks to social housing development.

The amended Law on Real Estate Business, the Law on Land and the Law on Housing will come into force from the beginning of 2025, helping to resolve problems, maximise resources and promote the development of the property market and the affordable segment.

Social housing development is considered pressing as Việt Nam is facing a serious shortage of homes for low-income earners.

Hoàng Hải, Director of the Housing and Real Estate Market Management Department under the Ministry of Construction, said the amended law on housing will create more favourable conditions for both developers and buyers while facilitate the development of this segment.

A new point is that the designation of 20 per cent of land for social housing development will fall under the responsibility of each locality who will know more exactly about the local demand for the most appropriate social housing development planning in line with their local socio-economic development orientations.

Procedures will be made simpler to implement social housing projects.

Nguyễn Văn Đính, Vice President of Việt Nam Real Estate Association, said the amended law on land will enable enterprises to access land with more transparency.

The Ministry of Construction’s statistics showed that 108 social housing projects with a total of 47,532 units are registered to be completed within this year, signaling a room in the supply of affordable homes.

In early 2024, many new large-scale affordable housing projects were announced.

Vinhomes began work on two social housing projects branded Happy Home in Hải Phòng and Khánh Hoà worth VNĐ5.8 trillion and VNĐ3.8 trillion, respectively, covering an area of more than 100 ha.

When completed, these projects will supply more than 4,000 affordable apartments in Hải Phòng and 3,300 units in Khánh Hoà.

Vinhomes said that another social housing project of 3,100 units will be implemented in Thanh Hoá in 2024.

Other players also join in social housing development such as BIC Việt Nam with a plan of developing Rice City Tố Hữu of 711 apartments and Rice City Long Biên of 600 apartments in Hà Nội and Newland with 1,260 apartment Tân Phú Hưng project in Hải Dương.

Property expert Đinh Trọng Thịnh said the increase in the supply of affordable apartments will help free up cash flow into the real estate market and promote the market development over the difficult time.

Social housing will be the highlight of the real estate market this year and following years with the improving legal framework which will help attract more enterprises to invest in social housing development.

Before the laws come into effect, it is necessary to develop synchronised and detailed regulations to ensure its enforcement in reality and motivate enterprises. — VNS

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