Hanoi authorities have announced that they will supply 15,500 apartments for low-income people by 2015, meeting 30% of the estimated demand.
|Director of Hanoi Department of Construction Nguyen The Hung|
The Director of the Department of Construction, Nguyen The Hung, confirmed this on July 3 during a meeting regarding urban development through 2030.
Between 2000 and 2010, a number of new urban areas were established, including Linh Dam and My Dinh. But most of the real estate projects in these areas focus on the high end sector of the market, practically ignoring the needs of those on limited incomes.
In addition, lax management has led to many abandoned properties because authorities grant land to investors with infeasable plans.
The total cost for the project will be divided into three phrase. The first phrase, from 2013 to 2015, will cost an estimated VND8.4 trillion (USD402 million), the cost of the second phase, from 2015 to 2020 will be over VND7.6 trillion and the phase, until 2030, will be VND8.6 trillion.
Hung also confirmed that they have sufficient funds for this long-term project, saying that "For the first phase, government has already given us VND3 trillion in bonds."
In the meantime, Hanoi authorities plan to place a temporary moratorium on land use rights for many large commercial projects while they carry out inspections on current ones.
"There is a surplus of commercial housing at this time, so we will halt some projects in the inner city." Hung said.
Hanoi has withdrawn approval for 25 projects and plans to withdraw nine others soon.