Hanoi authorities have approved the sale of social housing to give low-income people an opportunity to buy in Hanoi.

The first 328 low-income apartments will be up for sale soon.

Social housing will be available on the market in the next 2 months at a price of VND 8.8 million (USD 455) per square metre, excluding VAT.

With speculation surrounding this matter, DTiNews held an interview with Dang Hoang Huy, General Manager of Vinaconex Xuan Mai Company - investor of the social housing project located at CT1 on Ngo Thi Nham, Ha Dong District.

The low-income apartments are expected to be up for sale once all the legal proceedings have been completed.

What is your opinion on this recently issued decision of Hanoi’s People’s Committee?

I am glad that finally, regulations regarding the selling, renting and housing management for people with low income in Hanoi’s urban areas have been issued.

This will not only be a joy for low-income families, but also help our business to have a return on our capital because with this project, we didn’t make any loans with any financial institution.

Designed for low-income earners, the construction of building CT1 with 328 apartments has basically been completed and is currently in its final stages.

Will the state management agency or the company yourself be in charge of selling these apartments to low-income people?

The current regulations on this matter are very clear. Initially, based on the criteria that has recently been publicised, whoever can meet these criteria will have to submit an application to us - Vinaconex Xuan Mai Company.

Based on scores from high to low, we will then submit this list to the city’s Department of Construction for inspection and a decision to be made. In my opinion, this is an adequate regulation that matches well with reality as the supply is low and the demand is high.

With such high demand, what should be done to create fairness in the selection of home buyers?

Although I have not received any applications so far, I can already imagine the complexity of the problem. With these first 328 apartments, we have been ordered to process and review all applications very carefully.

The Department of Construction will participate with us in the final selection stage. In the case where there are too many applicants all meeting the same criteria, we will have to use the draw method.

When will the sale for social housing start?

This decision will have been effective 10 days after the day it was signed, plus it takes us about a month to receive all the applications. If everything goes smoothly, I think, within the next 2 months, the first family that applied to buy our social housing apartment will be informed of our decision.

Previously, you said that the CT1 project is intended for low-income people however, you could not make any loans. How then would you be able to encourage other businesses to develop this type of housing?

The Ministry of Construction and the Vietnam Development Bank have recently agreed to cooperate in sponsoring social housing projects. I hope, in the future, it will be implemented more rigorously. To date, according to what I know, virtually no low-income housing project is entitled to loans.

We are currently working with the Vietnam Development Bank to deploy other projects in Vinh Yen, Ha Dong and Ho Chi Minh City.

What is the expected selling price for an apartment at CT1 on Ngo Thi Nham?

We have proposed for it to be VND 8.8 million per square metre (excluding VAT). Currently, we don’t have any VAT exemption policy for home buyers, but I hope this matter will be reconsidered by the city’s authorities so that discounts can be provided for these people.

Thank you!