More than 200,000 new social housing units are about to hit the market?

According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, the disbursement rate of social housing credit is low because there are still many difficulties related to land funds, planning, procedures, capital and output.

Social housing credit disbursement is too slow

Sharing at the workshop "Hai Phong: A bright spot in social housing development", Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), said that regarding the disbursement of the VND 120,000 billion credit package in the Program to build 1 million apartments in the period of 2021-2030, according to VARS statistics, the disbursement rate only reached 1% with the amount of VND 1,234 billion, an increase of VND 594 billion compared to the end of the first quarter.

Of the total disbursed amount, disbursement to investors is about 1,202 billion VND, accounting for 97.4%, disbursement to people borrowing to buy houses is about 32 billion, accounting for 2.6%.

According to Mr. Nguyen Van Dinh, the disbursement rate is low because social housing projects still face many difficulties related to land funds, planning, procedures, capital and output.

Fortunately, with the efforts of the Government and ministries, three new laws (Land Law, Housing Law, Real Estate Business Law) were activated from August 1, contributing to a strong impact on social housing projects.

Accordingly, the new law clearly stipulates that the provincial People's Committee must allocate sufficient land funds for social housing development according to the approved provincial housing development program and plan, overcoming the shortage of land funds for development, allowing project development enterprises to choose to allocate land funds with built technical infrastructure in the developed commercial housing project or in other areas or pay equivalent money.

Second is to expand the investment subjects of social housing, adding cases of enterprises, cooperatives, and cooperative unions in industrial parks participating in social housing development, this is a very new point.

Third, investors do not have to carry out land use exemption procedures. This procedure used to take 2 years or even more.

Fourth, investors are not required to reserve 20% of the area for lease. VARS assesses that this helps investors rotate capital faster and participate more in social housing development.

"For social housing project investors, the fact that 20% of commercial service area is not subject to profit margin is a very strong open regulation, helping to increase profits for investors. It is considered one of the very new bright spots," Mr. Dinh commented.

In addition, the new points of the 3 laws also affect people in need of social housing. That is the abolition of regulations on residence conditions. Increasing output for the market when people can participate more easily. The market opens up more opportunities; increasing the minimum income from 11 million to 15 million/month. Mr. Dinh commented that this is a clear and stimulating new point.

In addition, two more groups of beneficiaries of social housing support policies compared to the current ones are added, which are poor and near-poor households in urban areas and enterprises, cooperatives, and cooperative unions in industrial parks.

There will be more than 200,000 new social housing units soon.

According to VARS' forecast, the new revised regulations will contribute to solving the "both shortage and unsold" situation of the social housing segment, especially in developed provinces and cities with high demand.

Mr. Nguyen Van Dinh forecasts that the supply of social housing will improve from the first months of 2025 and the end of 2026, with an estimated completion of over 200,000 units.

However, the Chairman of VARS assessed that the Project of 1 million social housing units by 2030 is still a big challenge and needs time to be absorbed into the law.

Mr. Nguyen Van Dinh predicts that the supply of social housing will improve from the first months of 2025 and the end of 2026.

Therefore, Mr. Dinh recommended that it is necessary to organize policy dissemination programs, closely monitor, and ensure that relevant agencies fully prepare the conditions for implementing the new legal corridor.

Continue to promote and complete social housing projects that have been started, especially in cities with great demand such as Hanoi and Ho Chi Minh City.

Early approval of the adjusted VND 140,000 billion credit package. The People's Committees of provinces and cities need to be proactive, review the housing needs of local people and review and adjust the planning to arrange and plan additional land funds for investment in social housing construction in accordance with the needs to ensure good implementation of policy goals, avoid taking advantage of policies and negativity.