Many localities are experiencing an imbalance between supply and demand
The Ministry of Construction has recently sent a letter to the People’s Committees of provinces and centrally-run cities regarding the construction and adjustment of the Housing Development Plan for 2021-2025, 2024, as well as the report on the implementation in 2023.
Many localities are experiencing an imbalance between supply and demand in the housing market.
The Ministry of Construction’s document states that, according to the regulations on housing, based on the National Housing Development Strategy approved by the Prime Minister, localities must approve housing development programs and plans as a basis for approving and implementing housing construction projects in their areas. For annual housing development plans, provincial People’s Committees must approve the following year’s plan no later than December 31 of the previous year.
The Ministry of Construction has issued documents requesting localities to urgently develop or adjust the 2021-2030 housing development programs and the 2021-2025 housing development plans, as well as annual housing development plans, to serve as a basis for approving and implementing housing construction projects.
However, according to the Ministry of Construction’s compilation, there are still some localities that have been slow in approving or adjusting the housing development plans according to the regulations (7 out of 63 localities have not approved the 2021-2025 Housing Development Plan, and 59 out of 63 localities have not approved the 2024 Housing Development Plan).
Some localities have approved or adjusted the content of their housing development programs and plans incompletely, not in accordance with the legal provisions on housing, leading to an imbalance between supply and demand in the housing market, especially for different target groups in the area.
Some localities’ approval of social housing related indicators is not close to the actual demand, causing difficulties in allocating and balancing resources for social housing construction according to the government’s direction.
In addition, many localities have reported incomplete data on floor area, number of completed housing units, as required by the Ministry of Construction, which makes it impossible to evaluate the housing development situation based on the approved plans.
Urgently approving the 2024 housing development plan
Based on the above reality, the Ministry of Construction has requested the People’s Committees of provinces and centrally-run cities to urgently implement the following contents:
Specifically, for localities that have not approved the 2021-2025 Housing Development Plan, they need to urgently develop and approve the 2021-2025 and 2024 housing development plans in accordance with the legal provisions on housing.
The Ministry of Construction requests localities to urgently approve the 2024 housing development plan.
For localities that have already approved the 2021-2025 Housing Development Plan, they need to urgently approve the 2024 housing development plan in accordance with the legal provisions on housing. At the same time, it is necessary to evaluate the implementation of this housing development plan to adjust any content and indicators that are not appropriate according to the regulations in Article 2a, Article 4 of Decree No. 99 dated 20/10/2015 by the Government (amended, supplemented by Decree No. 30/2021 dated 26/3/2021).
In implementation of the National Housing Development Strategy and the Government’s Resolution No. 01 dated 06/01/2023, the Ministry of Construction has been assigned the task of compiling and evaluating the implementation of certain indicators, including the average floor area per capita of housing nationwide.
Therefore, the provincial People’s Committees are requested to report the average floor area per capita, total floor area of ​​housing in the province, and total population of the province in 2023 for the Ministry of Construction to compile and report to the Prime Minister.
Regarding the data on the implementation of the housing development plan in 2023, on December 12, 2023, the Ministry of Construction issued a document to the People’s Committees of provinces and centrally-run cities announcing the information for Q4 and the whole year 2023 on housing and real estate market, including a request to report data on the floor area and number of completed housing units in 2023 for each type of housing (commercial housing, social housing, resettlement housing, public housing, renovation, reconstruction of old apartment buildings, self-constructed housing projects outside planned areas, housing programs, targets).
Therefore, it is requested that the People’s Committees of provinces and centrally-run cities direct the functional agencies to review and supplement the missing data on the floor area, number of completed housing units in 2023 according to the Ministry of Construction’s requirements.
In addition, review and report on the implementation of social housing investment on the area where locality has registered in 2024 to implement the Project “Investment in construction of at least 1 million social housing units for low-income individuals, workers in industrial zones in the 2021-2030 period”.
