Reasons for proposing price ceilings for social housing:
The Ministry of Construction is seeking opinions on the draft resolution on piloting several mechanisms and special policies for social housing development, which will be submitted to the National Assembly for approval at the 9th session.
In the assessment report of the draft resolution, the Ministry of Justice requested the Ministry of Construction to consider adding provisions on price ceilings for social housing for sale and rent to ensure people’s access to housing.
The Ministry of Justice proposed adding price ceiling regulations for social housing to the National Assembly’s special policy resolution. Image: Ninh Phan. |
The Ministry of Justice also suggested including provisions for ex-post evaluation to prevent abuse of social housing policies.
According to current regulations, the selling price of social housing is determined by the investor, taking into account all costs for capital recovery, interest (if any), and a maximum of 10% profit margin. This price is approved by the provincial People’s Committee, excluding any state incentives.
In response to the Ministry of Justice’s proposal, the Ministry of Construction stated that, according to the 2023 Housing Law, the rent for social housing includes maintenance fees and is agreed upon between the investor and the tenant based on a framework set by the provincial People’s Committee.
Therefore, the Ministry of Construction suggested not adding price ceiling provisions for social housing to the draft resolution. However, they accepted and incorporated the proposal on ex-post evaluation of social housing projects into the draft.
In the assessment report, the Ministry of Justice also recommended that state agencies approve the information and dossiers of social housing buyers instead of enterprises to ensure transparency.
The Ministry of Justice argued for sanctions against investors who fail to meet the implementation progress of social housing projects. They suggested a mechanism to force the transfer of projects to other investors to prevent time waste and ensure people’s access to housing.
Regarding this proposal, the Ministry of Construction shared that they are developing a housing and real estate market information system, which will integrate data on individuals who have purchased social housing for monitoring and management. Additionally, provisions on enterprises’ comprehensive responsibility for progress, non-profiteering, corruption, etc., have been included in the draft resolution.
Proposed addition of a social housing fund for sale to officials, public employees, and workers
The Ho Chi Minh City Real Estate Association (HoREA) also provided feedback on the draft resolution. They proposed adding regulations for the National Housing Fund to invest in constructing and establishing a social housing fund for officials, public employees, and workers to buy, in addition to the current options of renting and rent-to-own.
Mr. Le Hoang Chau, Chairman of HoREA, stated that Article 103 of the Housing Law regulates the development of housing for the people’s armed forces. According to the law, the state invests in constructing housing for the people’s armed forces using public investment capital for leasing to the subjects specified in Clause 7, Article 76 of the Law.
The state invests in constructing housing for the people’s armed forces using the capital source specified in Point b, Clause 1, Article 113 of this Law for the subjects specified in Clause 7, Article 76 of the Law to buy, rent-to-own, or lease.
Real estate businesses invest in constructing housing for the people’s armed forces for the subjects specified in Clause 7, Article 76 of the Law to buy, rent-to-own, or lease.
HoREA proposed applying similar regulations to supplement and perfect Clause 3, Article 4 of the draft resolution. According to Clause 2, Article 4 of the draft resolution, the National Housing Fund is a state financial fund outside the budget, with capital sources including allocated budget capital and various other sources such as voluntary support, contributions from organizations and individuals inside and outside the country, revenue from selling state-owned housing assets, and other legitimate sources outside the state budget.
Therefore, HoREA suggested adding regulations for the National Housing Fund to invest in constructing and establishing a social housing fund for officials, public employees, and workers to buy, in addition to renting and rent-to-own. This proposal aims to ensure that officials, public employees, and workers can buy or rent-to-own housing according to government regulations and to maintain consistency with other social housing policies stipulated by law.
Ninh Phan
– 11:37 13/05/2025
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