National Social Housing Conference is coming up
Prime Minister Pham Minh Chinh recently issued directions to urgently implement key tasks after the Lunar New Year holiday. In particular, the Ministry of Construction is required to lead and coordinate with agencies and localities to organize the National Social Housing Conference in February.
The Ministry of Construction is also tasked with concentrating resources to complete and ensure quality and progress according to the requirements for guiding documents of the Law on Housing (amended), the Law on Real Estate Business (amended); early guiding the method of determining the price of materials at mines exploited under the specific mechanism for localities to announce the basis price for investors to approve payment prices for contractors.
The National Social Housing Conference will take place on the morning of February 22, chaired by the Minister of Construction.
Immediately thereafter, the Ministry of Construction issued dispatch 637/BXD-QLN inviting participation in the conference to implement the Project “Investment in construction of at least 01 million social housing units for low-income people, workers in industrial parks in the period of 2021-2030” in 2024.
The dispatch of the Ministry of Construction states that on April 3, 2023, the Prime Minister issued Decision 338 approving the Project “Investment in construction of at least 01 million social housing units for low-income people, workers in industrial parks in the period of 2021-2030”.
In Resolution No. 01 dated January 5, 2024 on tasks, the main solutions to implement the Plan for socio-economic development and state budget estimates for 2024, the Government set a target of making efforts in 2024 to complete 130,000 social housing units nationwide.
To implement the assigned tasks, the Ministry of Construction respectfully invites the leaders of the agencies to attend and make remarks at the conference to implement the Project “Investment in construction of at least 01 million social housing units for low-income people, workers in industrial parks in the period of 2021-2030” in 2024.
Accordingly, the conference will be chaired by Minister of Construction Nguyen Thanh Nghi. The event will take place from 08:30 to 12:00 on February 22, 2024 in the form of online meeting at the headquarters of the Provincial People’s Committee.
The local participants include: Chairmen of Provincial People’s Committees; leaders of Departments: Construction, Planning – Architecture (for Ho Chi Minh City), Finance, Planning and Investment, Natural Resources and Environment; leaders of State Bank of Vietnam Branch, Social Policy Bank Branch; commercial banks; enterprises participating in social housing investment in the province invited by Provincial People’s Committee.
Will there be more than 47,500 social housing units in 2024?
Experts believe that with the policies of the Government as well as the efforts of ministries, sectors and localities in promoting the development of social housing, it is hoped that this housing supply will rebound and lead the market in 2024.
Ms. Pham Thi Mien, Deputy Head of the Market Research and Investment Promotion Consultancy Department (Vietnam Real Estate Brokers Association) believes that although the real estate market still faces many difficulties, promoting the development of social housing is the “foundation” for the new development cycle of Vietnam’s real estate market. The social housing segment, affordable commercial housing will perform well and lead the entire market from mid-2024.
In 2024, localities have registered to complete a total of 108 social housing projects with more than 47,500 units.
Meanwhile, Mr. Vo Hong Thang – R&D Director of DKRA Group – predicts that in the period 2024 – 2025, when the market enters a new cycle, residential real estate will be the first segment to recover. Therefore, focusing on residential real estate, especially social housing projects, affordable housing, mid-range and affordable apartment segments is optimistic, suitable for market demand, as well as the national housing development strategy in the period 2021 – 2030.
Mr. Nguyen Van Dinh – Chairman of the Vietnam Real Estate Brokers Association – assesses that developing affordable housing will open up opportunities to solve the imbalance between supply and demand, reducing the overall housing prices in the market.
According to the Ministry of Construction, the number of registered social housing projects to be completed in 2024 by localities reaches a total of 108 projects, with a scale of over 47,500 units this year. In which, the top 3 localities in the country in terms of completing social housing goals are Bac Ninh, Binh Duong, and Hai Phong. Ranking first, Bac Ninh has registered the most social housing projects with 5 projects, a scale of 6,000 units. Ranking second is Binh Duong with 20 projects, a scale of 4,500 units. And Hai Phong city ranks third with nearly 4,000 units from 8 projects.
Besides, Hanoi has registered 3 projects with nearly 1,200 units, while Ho Chi Minh City has 6 projects with a scale of nearly 3,800 units. The targets of these two localities in the 2021-2025 period, according to the Prime Minister’s project of building 1 million social housing units, are over 18,700 units and over 26,000 units, respectively.
Regarding the implementation of the VND 120,000 billion credit package for social housing loans, according to the reports of localities and investors, currently 27 provinces have announced the list of 63 projects eligible for loans under the VND 120,000 billion credit program with a loan demand of VND 27,966 billion.
As of the end of 2023, some social housing projects in localities have been disbursed with a capital of about nearly VND 180 billion.
