HCM City reports low social house supply
Despite the rising demands for affordable and social housing, supply in HCM City remains limited.
However, from March to July, the real estate market has been badly affected by Covid-19, especially the affordable housing sector.
In the first nine months, the Department of Construction confirmed that 20 projects met the conditions to call for capital. However, only 2.5% of them are affordable housing, a decrease of 98.5% compared to the same period in 2019 even though applications for social houses and demand for affordable houses are rising.
According to many experts, the land plots near the city's centre are expensive so it's more reasonable to build far away but the investor will have to develop the infrastructure too. The land fund for social housing projects in HCM City is also running out and it's impossible to find an investor that is willing to spend a huge amount of money on infrastructure development.
Le Hoang Chau, chairman of the HoREA, asked HCM City authorities to review the proposals in order to have suitable criteria for investors and contractors for state-owned social housing projects. The authorities can provide support package so that buyers can access preferential bank loans.
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However, from March to July, the real estate market has been badly affected by Covid-19, especially the affordable housing sector.
In the first nine months, the Department of Construction confirmed that 20 projects met the conditions to call for capital. However, only 2.5% of them are affordable housing, a decrease of 98.5% compared to the same period in 2019 even though applications for social houses and demand for affordable houses are rising.
According to many experts, the land plots near the city's centre are expensive so it's more reasonable to build far away but the investor will have to develop the infrastructure too. The land fund for social housing projects in HCM City is also running out and it's impossible to find an investor that is willing to spend a huge amount of money on infrastructure development.
Le Hoang Chau, chairman of the HoREA, asked HCM City authorities to review the proposals in order to have suitable criteria for investors and contractors for state-owned social housing projects. The authorities can provide support package so that buyers can access preferential bank loans.
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