Hanoi to allocate more land for social housing
Hanoi is carrying out five social housing projects on a total area of 280 hectares in four outlying districts of Dong Anh, Thanh Tri, Thuong Tin and Gia Lam.
A social housing project in Quoc Oai District
The information was shared by vice-chairman of the municipal people's committee Duong Van Thuan at a recent government meeting on developing housing for workers and low-income people.
According to the Hanoi official, local authorities have arranged some 184 hectares for social housing projects in Dong Anh, four hectares for Thanh Tri and Thuong Tin each, and 55 hectares for Gia Lam. These projects are expected to supply 38,000 apartments with a total floor area of about 2.3 million square metres.
"Demand for social housing by 2030 is estimated at 113,000 apartments," he said. "We're considering between three to five more locations for developing social housing projects near industrial zones."
The official added that they completed 25 commercial housing projects with a total floor area of about 1.25 million square metres in the 2016-2020 period. Besides the five social housing projects, they're now carrying out 19 other commercial housing projects which are expected to be completed by 2025 and 33 more projects after 2025 with a total floor area of about 4.14 million square metres.
Vice Director of the Hanoi Department of Construction Mac Dinh Minh said housing prices have been on the rise over the years. In 2021, the prices climbed by 4-5 percent year-on-year, in which commercial house prices started at VND25 million (USD1,067) per square metre, beyond affordability for low-income groups.
“The most challenging issue for Hanoi is the lack of land or the development of budget housing projects, especially social houses, mainly due to the low profitability,” Minh said.
To solve the problem, Vice Chairman of the Vietnam Real Estate Association Nguyen Manh Ha suggested greater incentives for investors, especially in financial and land allocation, are pulling factors to promote additional social housing projects.
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