Hanoi is about to have nearly 6,000 low-cost apartments for sale.

The information was given by the Hanoi Department of Construction in a discussion at the forum "To restore the real estate market to health and development" organized by Hanoi Radio and Television today, November 16.

The department said that the city currently has 69 social housing projects that have been and are being implemented. Of which, from 2021 to now, about 0.64 million square meters of social housing floor space has been completed, with more than 10,270 apartments in 8 fully completed projects and 3 partially completed projects.

About 0.345 million square meters of social housing floor space, 5,923 apartments in 11 projects are expected to be completed in the 2024-2025 period.

Thus, with 19 projects expected to be completed in the 2021-2025 period with about 0.952 million m2 of social housing floor space, about 15,440 units, reaching about 78.3% of the target in the City's social housing development plan (1.215 million m2 of floor space).

Entering the 2026-2030 period, the Hanoi Department of Construction said that there are 50 projects under implementation with about 3.21 million square meters of floor space, about 57,170 apartments.

According to information from the management agency, Hanoi is organizing the appraisal of investment policies to serve the bidding to select investors for 4/5 social housing areas (independent) concentrated in Dong Anh, Gia Lam, and Me Linh districts with a total land use scale of over 200 hectares, about more than 12,000 apartments.

Specifically, there are 2 social housing areas in Tien Duong commune (Dong Anh district); a concentrated social housing area in Co Bi commune (Gia Lam district) and a concentrated social housing area in Dai Mach commune (Dong Anh district), Tien Phong commune (Me Linh district).

The supply of social housing in Hanoi in the coming time will also be supplemented by converting student housing in the new urban area of ​​Phap Van - Tu Hiep into social housing for rent.

According to the Department of Construction, the City People's Committee is currently assigning the department to prepare a project proposal for investment and submit it for approval in 2024. It is expected to complete the renovation and upgrading of buildings A2 and A3 in 2026 and complete the investment and construction of building A4 in 2027 at the latest.

In addition, the city has assigned the Department of Planning and Architecture to coordinate with the People's Committees of districts, towns, and the Hanoi Industrial and Export Processing Zones Management Board to review and supplement about 15 land funds to create large-scale, independent social housing areas with synchronous infrastructure (about 2,000 social housing apartments/area). In which, it is proposed to select 2-3 areas located near industrial zones to invest in building social housing for rent using public investment capital according to the policy of the Politburo in Directive No. 34 in 2024.

Real estate tax needed to cool down housing prices

The development of social housing, low-cost housing, and affordable housing has been one of the issues of the real estate market in recent times. Discussing at the forum, many experts pointed out the current shortcomings of the market: the structure of housing products is not reasonable, there is a lack of low-cost housing, and affordable housing.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that high real estate prices hinder the sustainable development of the real estate market.

In Hanoi and Ho Chi Minh City, about 70% of new supply on the market is high-end and super luxury products. Even houses costing over 1 million USD are increasingly appearing, while affordable housing is disappearing.

At the forum, many experts continued to propose applying real estate tax tools to cool down housing prices.

Mr. Le Hoang Chau assessed that it is necessary to develop and apply a real estate tax policy because this tool will regulate the market when there is feverish speculation or when there is difficulty or freezing.

However, he noted, it is necessary to have resources to build an accurate, regularly updated database of real estate transactions and prices, creating a basis for application.

From the management agency, Ms. Nguyen Thi Phuong Hoa, Deputy Minister of Natural Resources and Environment, said that the Government has proposed a pilot project for investors to negotiate the right to use agricultural and non-agricultural land for commercial housing for 5 years. If approved by the National Assembly at the 8th Session, this pilot resolution will help to clear the supply for the market and help cool down housing prices.