Building 35,000 social houses in 5 years is not easy

Ho Chi Minh CityThe city wants to build 35,000 social houses in 5 years (2021-2025), but according to experts, this is not easy, it is necessary to remove a series of obstacles.

Sharing at the seminar “Sustainable development of the real estate market in a new context” organized by the National University of Ho Chi Minh City and the Central Economic Commission on the morning of March 11, Mr. Tran Hoang Quan, Director of the Department of Construction Ho Chi Minh City said that in the period 2016-2021, the city built about 16,000 social housing houses. The goal by 2025 will be to build over 35,000 apartments.

Recently, Ho Chi Minh City has reviewed, in which there are 33 commercial housing projects that spend 20% of the land fund to build social housing, if implemented, there will be about 70,000 more apartments. Among these, 14 projects have cleared the ground. However, Mr. Quan assessed that, in order to successfully build social housing, in addition to the city’s efforts, central levels must also actively support to remove difficulties.

“Because this is not only related to the real estate law but also the laws on land, investment, and property management,” Mr. Quan said.

A corner of the resettlement area of ​​Binh Khanh ward in Thu Thiem new urban area, Thu Duc city, March 2021. Photo: Thanh Nguyen

Businesses and experts also agree that making social housing is still very difficult nowadays. Even new regulations such as Decree 49 amending Decree 100 on social housing development and management have more troublesome points.

According to a representative of Hung Thinh Company, the regulation that commercial housing projects with a scale of 2 hectares or more in special urban centers of grade 1 must allocate 20% of the land fund for social housing, is impractical for the public. projects in central areas. Because with these land plots, the investor must compensate for the high price but are deducted for the social housing land fund according to the state unit price, businesses have to bear a large difference, increasing the house price even more.

Mr. Le Huu Nghia, Director of Le Thanh Company, Vice Chairman of Ho Chi Minh City Real Estate Association also said that the new Investment Law requires the submission of housing projects to be in accordance with the planning, but all planning in the city There are currently no places in the city that match the social housing specifications. “Decree 100 allows to increase the land use coefficient 1.5 times for social housing, but when it increases, it is not suitable for planning,” he said.

When building social housing, enterprises are entitled to deduct 20% of the land fund to build commercial houses. However, the profit from the commercial part must be included in the general profit of the social housing project, which is controlled at 10%. “This does not encourage investors to build social housing,” Mr. Nghia said.

Funding to build social housing is also difficult. In theory, businesses can borrow 70-85% of capital with an average preferential interest rate of 5%. But Mr. Nghia said that in fact, from 2016 to now, the refinancing capital for banks and businesses still has to borrow 11%, so the price of social housing cannot be reduced…

According to the research results “Reasonable housing development: Ho Chi Minh City case study” chaired by Assoc. Prof. Dr. Hoang Cong Gia Khanh, University of Economics and Law, Vietnam National University, Ho Chi Minh City. In the period 2011-2019, social housing only accounted for 5.44% in the expanded inner city and 6.9% in the suburbs.

By 2020, the low-income group’s demand for social houses will reach 16 million m2, but the supply 9 years ago was only 1.55 million m2. “The procedures for social housing are similar to those for commercial housing, even more complicated, so investors are not interested,” the research team assessed.

The study also said that households with a total income of between 14.3 million VND and less than 17 million VND per month in Ho Chi Minh City without land or house are facing the possibility of shortfall in payment for housing. great. Buying houses in this segment faces difficulties from both supply and demand. Therefore, the housing solution for this group is the form of rental-purchase social housing.

The expert group recommends that Ho Chi Minh City propose to the Government to allow businesses to decide on their own the percentage of deductions from profits from the sale, lease, and lease purchase of commercial housing areas in housing investment projects. in society when determining the selling price.

The representative of Hung Thinh also suggested that, in the immediate future, with the land plots created by the investor himself, the right to choose a land layout plan in an appropriate area for social housing development or in cash without dividing Differentiate the size of the land and the project.

In the long term, in the housing development strategy, there should be clean land funds, planning areas for social housing construction and assignment to the provincial housing business management agency as the investor to shorten the project implementation time. judgment. This agency will only conduct construction bidding.

Another idea is to use the form of “Social Housing Investment Certificate”, which is a kind of regulatory model like industry quota. Accordingly, the investor who completes the social housing project will be granted a certificate with a value equivalent to the scale of the project.

The investor has the right to transfer this certificate, create a certificate trading market to increase budget revenue (income tax from the sale of certificates), encourage businesses to build social housing and help businesses do business. The merchant buys the certificate to fulfill the social housing obligation for his project.

According to Mr. Le Huu Nghia, in addition to solving the problems mentioned above, it is possible to think of a solution to the social housing market. Because there are people who need to sell their social housing apartments urgently, they have to use handwritten papers before the 5-year time limit is reached. When there is enough time to legalize the documents, there is a risk of disputes. “Should there be a market that allows owners of social housing to be sold to other qualified people to buy social housing, avoiding the underground market,” he asked.

Yi Tung


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