Solutions to ease HCM City’s low-priced house shortage proposed
  • |, LD | August 21, 2019 02:25 PM
Ho Chi Minh City Real Estate Association (HOREA) have recommended some solutions to ease the city’s low-priced house shortage amid rapid population growth.

According to the association, HCM City is now home to around 9 million people which shows an increase of 1.83 million against 2009 or a rise of around 180,000 people per year on average.


HCM City faces low-priced house shortage

HCM City’s average housing area was estimated at 19.75 square metres per person compared to 25 square metre of the whole country.

The HOREA suggested that the city needs to have incentives to encourage businesses to carry out housing projects for low-income earners.

At present, state employees in HCM City can get a loan of up to VND900 million (USD39,130) from the municipal budget with a preferential interest rate of 4.7% per annum for 15 years to buy houses. Regarding this, the association proposed the capital increase for the fund and expanding the beneficiary.

The association has urged to focus on infrastructure development in the city’s suburban districts such as Cu Chi, Hoc Mon, Binh Chanh and Can Gio to serve housing projects. This would help mitigate traffic jams in the city centre.

Municipal authorities should also simplify administrative procedures in licensing low-priced housing projects. In addition, it is necessary to use 20% of the area of commercial housing projects of 10ha or more for building low-priced houses.

In the association’s opinion, the selection of investors for housing projects needs to guarantee transparency.

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