Housing for Low-income people in Hanoi are suffering because prices are too high. Projects that are selling houses are deserted, and there are quite a few customers who don't have money to pay and have to withdraw or run away.
Customers criticize high prices
Hanoi continues to accept applications for two low-income housing projects in Dai Mo (Tu Liem) and Sai Dong (Long Bien). But unlike previous application rounds for the project, the atmosphere this time was quite subdued.
In the second lottery round for the Saigon Dong residential project of Hanoi Construction Company No. 3 (Hanco 3), only 30 customers chose their apartment locations. More than 100 apartments remain unsold.
Similarly, the Sai Dong residential project of Handico5 (Investment and Construction Company No. 5) also only has over 100 customers paying for a total of 420 apartments.
0px; border: 0px; outline: 0px; font-size: 12px; vertical-align: baseline; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; color: #000000; font-family: Arial, Helvetica, sans-serif; text-align: justify;">The least popular project is probably the Dang Xa project of Viglacera Corporation in Gia Lam. In the second lottery round, only 15 people signed contracts and paid. Thus, out of the 4 social housing projects currently for sale in Hanoi, 3 projects are experiencing significant unsold inventory, with a total of 1,000 apartments remaining unsold.
The most frequently cited reason remains that social housing prices are approximately the same as commercial housing prices. It's easy to see that while commercial housing prices in many areas have reached 14-15 million VND/m2, affordable housing is commonly around 13 million VND/m2. Payment schedules, installments, and loan terms are also extremely restrictive.s-serif; text-align: justify;">Ms. Nguyen Thu Huyen, a buyer of a house in the Dang Xa project, frankly stated that a project intended for low-income earners, guaranteeing social welfare, is being sold at such prices that people will never be able to afford it. "I estimate that if the government facilitates loans for people to buy 60m2 apartments over 5 years, people would have to pay more than 100 million VND per year, not including interest." "100 million VND divided by 12 months means each month's payment is 8-9 million VND."
"That amount of money to repay the bank loan is not for low-income earners, but for high-income earners," Ms. Huyen said.
" border: 0px; outline: 0px; font-size: 12px; vertical-align: baseline; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial; color: #000000; font-family: Arial, Helvetica, sans-serif; text-align: justify;">Doing a simple calculation, if people spend nearly 800 million VND to buy a 60 m2 low-income apartment, they could also use that money to buy a smaller commercial house in urban areas, or choose a mini-apartment. Not to mention, they are not bound by complex conditions and requirements regarding ownership, transfer time, approval... like NTNT. It was very difficult to buy a house. However, after being granted the right to buy a 70 m2 apartment in the Kien Hung project (Ha Dong) and having paid 30% of the apartment's value, Mr. Nguyen Dinh Toan, currently living in Ha Cau ward, Ha Dong district, Hanoi, felt unlucky. The reason Mr. Toan gave was that he didn't know where to get the nearly 200 million VND needed to pay the second installment to the developer. Therefore, if he couldn't get an extension on the payment schedule, his final solution would be to withdraw his house purchase application and accept the penalty. Businesses are struggling Not only are there difficulties due to design standards, apartment size, projects, and interior and exterior materials, but according to construction businesses, the rapid price fluctuations over time are also a cause of increased interior design costs, creating difficulties for businesses in both input and output. Mr. Tran Van Nguyen, Deputy Director of Hanco 3, explained that prices depend heavily on the time. The Sai Dong project started in late 2010, and from 2010 to 2011, the market price of materials fluctuated by 20% to 30%. The high house prices are mainly due to market prices. After inflation, many people did not have enough money to buy. The NTNT Sai Dong project - Handico 5's first social housing project - has 420 apartments. Recently, some customers returned their apartments, so only about 300 have been sold, leaving more than 100 apartments unsold. Mr. Nguyen Van Da - Deputy Director of Vinaconex Xuan Mai Company also shared that the Kien Hung residential project (Ha Dong), which his company is the investor of, is also facing a situation where many customers are withdrawing their applications and not buying houses. Sympathizing with the "hardships" of businesses, the Head of the Housing Development Department, Hanoi Department of Construction - Mr. Vu Ngoc Dam - said that the Government's policy on affordable housing includes VAT exemption, credit support for businesses participating in construction, and land fee exemptions and reductions.
NTNT failure? When launched program to do NTNT in 2009, the Ministry of Construction expects to partially meet Housing needs for inner-city residents. Specifically, the period from 2009 to 2015 included 189 projects, serving approximately 700,000 people.
However, to date, the Ministry of Construction has not been able to summarize the program because only 39 projects (only 26% of the planned number) have been started, with a total investment of... Approximately 4 trillion VND. In particular, out of these 39 projects, only nearly 1,800 apartments have been completed so far, reaching only 1% of the plan, and the projects currently on the market have no buyers.
Many experts believe that with prices ranging from 11-13 million VND/m2, the poor cannot afford them. Yes. Policies on developing low-income housing should focus on building and establishing a rental housing market. The State will play a leading role in implementing the projects.
"Even with small designs of 30 m2 or 50 m2, this group cannot afford to buy them. Housing policy for low-income earners is a program where the State must play a key role; it is a housing policy for rent with preferential rental prices. Only then will it be possible." "This will solve the pressing problems currently arising" - Mr. Nguyen Tan Van - Chairman of the Vietnam Association of Architects stated.viewpoint. Previously, Mr. Tong Van Nga - Former Deputy Minister of Construction, Standing Vice Chairman of the Vietnam Real Estate Association also proposed that rural housing should be considered state assets; Simultaneously, assign an agency to manage leasing to individuals with average, stable salaries and incomes.
For the general public, the proposal suggests that leasing and lease-purchase agreements should only be available for 10-20 years, ensuring that those with stable incomes and occupations will be able to purchase.
"With reasonable rental prices, anyone with a stable income would want to live there. As for lease-to-own, it's a long-term plan; initially, the buyer pays annually, and after 10-15 years, the house becomes their property. I believe that the right policy will yield results, therefore the Association will certainly persevere in proposing this direction to the Ministry of Construction," - Mr. Nga stated. decision.