Low-income and rental housing to be prioritised

According to the PM, the domestic property market has made remarkable progresses over the past years, with many housing and infrastructure projects. However, the sector still shows weaknesses, including unstable development. Housing prices remain high compared to incomes and particularly, there is a shortage of housing for lease.

The main source of capital for the real estate market are banks and mobilised from people. The sector really needs a medium and long-term source, the PM added.

To improve the situation, the PM has asked the Ministry of Construction to cooperate with ministries, agencies and localities to scrutinise housing projects that are already underway for classification, and then decide whether they should be continued. The ministry is also required to submit the Government a project on building homes for lease, with special priority given to low-income apartments by the first quarter of 2012.

He also instructed the Ministry of Finance to revise its regulations on corporate income tax on land and housing transfer activities.

The Ministry of Natural Resources and Environment will be responsible for instructing localities to speed up the grant of land ownership certificates as well as deal with management agencies who delay grants. 

The State Bank of Vietnam and the Ministry of Construction must provide instruction to credit organisations in providing loans for housing projects which would sell or lease to low-income households as well as workers in industrial parks and export processing zones. In addition they will consider those groups who are most in need of accommodation. 

The PM has requested that loan restrictions be placed on compensation and site clearance for newly-started and luxury projects. In addition, he said, stricter controls should be placed over loans to individuals for real estate business.