The social housing market faces challenges, especially when it comes to pricing. To address this, the Ministry of Construction introduced the 2023 Housing Law and Decree No. 100/2024/ND-CP, which took effect on August 1, 2024. These regulations introduce new policies to encourage and boost investment in social housing, making it more affordable for low-income earners and workers.
The law and decree include provisions such as selecting investors for social housing projects, offering incentives to those investors, and simplifying the conditions for purchasing or renting social housing. They also cap profit margins at 10% of total investment costs to ensure that sale and rental prices are within reach for low-income earners and workers. Rental rates will be agreed upon between landlords and tenants, following a framework set by provincial People’s Committees.
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Additionally, to meet the housing needs of workers in industrial zones, the 2023 Housing Law has introduced regulations regarding worker dormitories. These dormitories must have adequate infrastructure and functional areas to serve the needs of the residents, including healthcare, cultural activities, recreation, sports, and public utilities. Along with the social housing support policies, workers can now consider renting these dormitories at agreed-upon rates, following a framework set by provincial People’s Committees.
Accelerating disbursement of the 120 trillion VND credit package for social housing
Deputy Prime Minister Trần Hồng Hà has recently issued directives regarding the implementation of the 120,000 billion VND credit package for investors and buyers of social housing, workers’ housing, and projects for the renovation and construction of apartment buildings.
Astonishingly high price for old and dilapidated apartment buildings reaching nearly 200 million VND/m2, rivaling the most luxurious condominiums in Hanoi
Old collective apartments with prices starting from 100 million VND/m2 are usually the first-floor units that can be used for commercial purposes, while the upper-floor units are priced at 60-80 million VND/m2 for residential purposes.
Danang demolishes “waiting-to-collapse” apartment buildings
Three apartment complexes that were allocated for rent by the Da Nang City Hall since 2001 are now severely deteriorated and in need of relocation.
The truth about the State Bank banning loans for future home purchases
Due to the recent regulations issued by the State Bank, many individuals are concerned about their ability to obtain loans for future housing purchases starting from July 2024. The State Bank has provided more detailed information regarding these new regulations.
Challenging to Get Affordable Loans for Social Housing
The discrepancy between legal regulations and lending policies of banks has made it difficult for businesses to access favorable loans for social housing development.
