A view of Dang Xa social housing project in Hanoi’s Gia Lam District. (Photo: bizlive.vn)Hanoi (VNA) - Two new preferentialloans, unrestricted by scale and deadline, for social housing and cheapcommercial housing projects will be provided to low-income earners. The newpackages are expected to continue the 30 trillion VND housing stimulus package.
Nguyen Tran Nam, Chairman of Vietnam Real Estate Association (VNREA) told theassociation’s meeting held earlier this week that the Law on Housing 2014 andDecree No 100/2015/NĐ-CP on social housing and cheap housing stipulates thatcapital for the two packages would come from commercial banks and the VietnamBank for Social Policies.
Commercial joint stock banks with controlling State stake-holdingswould have to spend 3 percent of their total outstanding loans for developersand buyers of social housing projects.
The second source for loans for social housing projects would come from the VietnamBank for Social Policies. The bank would use 50 percent capital from the Statebudget and the mobilise the remaining capital to provide loans for people to buysocial housing with a maximum interest rate of 5 percent.
However, the policieshave not taken effect yet as it was infeasible for commercial banks to set up afund for loans for social housing projects. Most commercial banks have faceddifficulties in providing preferential loans to social housing projects.
Secondly, the Vietnam Bank for Social Policies has not only focused on loansoffered to low-income earners but other programmes such as agriculture,maritime economic development and supporting students.
VNREA in June sent a document to the Prime Minister, State Bank of Vietnam andthe minister of Construction to ask for specific laws enforced to provide capitalfor social housing.
The Chairman affirmed that there would be money inflows in the social housingsegment in 2017. VNREA targeted establishing a pilot property investment fundto have independent capital mobilisation for the market without depending on bankloans.
It also proposed mechanisms and policies to encourage the development of socialhousing and cheap commercial housing segments with areas of less than 75sq.mand selling prices of less than 15 million VND per sq.m.
The association suggested reducing VAT and corporate income tax tofacilitate real estate firms to build cheap apartments.
Nguyen Tran Nam, Chairman of Vietnam Real Estate Association (VNREA) told theassociation’s meeting held earlier this week that the Law on Housing 2014 andDecree No 100/2015/NĐ-CP on social housing and cheap housing stipulates thatcapital for the two packages would come from commercial banks and the VietnamBank for Social Policies.
Commercial joint stock banks with controlling State stake-holdingswould have to spend 3 percent of their total outstanding loans for developersand buyers of social housing projects.
The second source for loans for social housing projects would come from the VietnamBank for Social Policies. The bank would use 50 percent capital from the Statebudget and the mobilise the remaining capital to provide loans for people to buysocial housing with a maximum interest rate of 5 percent.
However, the policieshave not taken effect yet as it was infeasible for commercial banks to set up afund for loans for social housing projects. Most commercial banks have faceddifficulties in providing preferential loans to social housing projects.
Secondly, the Vietnam Bank for Social Policies has not only focused on loansoffered to low-income earners but other programmes such as agriculture,maritime economic development and supporting students.
VNREA in June sent a document to the Prime Minister, State Bank of Vietnam andthe minister of Construction to ask for specific laws enforced to provide capitalfor social housing.
The Chairman affirmed that there would be money inflows in the social housingsegment in 2017. VNREA targeted establishing a pilot property investment fundto have independent capital mobilisation for the market without depending on bankloans.
It also proposed mechanisms and policies to encourage the development of socialhousing and cheap commercial housing segments with areas of less than 75sq.mand selling prices of less than 15 million VND per sq.m.
The association suggested reducing VAT and corporate income tax tofacilitate real estate firms to build cheap apartments.
Several real estate firms and specialists said that the Governmentshould have stable solutions to increase the supply of social housing and cheaphousing projects.
VNREA said there have seen negative signs in the estate market, especially theunbalanced housing structure. Up to 70 percent of property products in themarket are high-end apartments while most people need low and medium houses.
It has been hard to create apartments with selling prices of less than 20 millionVND per sq.m in Hanoi and HCMCity. Since the end of 30 trillion VND stimulus package, estate firms have notattention to social and cheap commercial housing.
Nguyen Van Duc, Deputy Director of the Dat Lanh Real Estate Company, said thhatGovernment support in taxes, capital and administrative procedures werenecessary for the development of social housing programmes.-VNA
VNREA said there have seen negative signs in the estate market, especially theunbalanced housing structure. Up to 70 percent of property products in themarket are high-end apartments while most people need low and medium houses.
It has been hard to create apartments with selling prices of less than 20 millionVND per sq.m in Hanoi and HCMCity. Since the end of 30 trillion VND stimulus package, estate firms have notattention to social and cheap commercial housing.
Nguyen Van Duc, Deputy Director of the Dat Lanh Real Estate Company, said thhatGovernment support in taxes, capital and administrative procedures werenecessary for the development of social housing programmes.-VNA
VNA
