Present supply of social houses does not meet market demand, according to the Ministry of ConstructionIn its report on the second quarter real estate market, the Ministry of Construction reported social housing projects for low-income people in big cities.
According to the report, the prices of houses in urban areas tend to increase compared to the general income as well as the growth rate of the economy because the price of land in some localities has been adjusted up and the price of some construction materials has also increased dramatically in recent years.
For instance, a few social housing projects in Hanoi have the average selling price of VND13.5-16 million per square meter such as IEC Thanh Tri (1,167 apartments with the price at VND15,8 million per square meter; Ecohome in Bac Co Nhue - Chem (3,040 apartments, at VND16 million per square meter; CT4 Kim Chung, Dong Anh (484 apartments, at VND13.5 million per square meter.)
Elsewhere in Ho Chi Minh City, a few social housing projects are being sold at the average price of VND13-25 million per square meter such as An Phu Tay (311 apartments at VND13 million per square meter ); Phu Tho DMC in Ly Thuong Kiet Street in District 10 (1,088 apartments, at VND25 million per square meter).
In the Central City of Da Nang, social housing construction projects are also very limited, with the average selling price much lower than that of Hanoi and Ho Chi Minh City at about VND7.2-12.7 million per square meter.
In Can Tho City, Gia Phuc social housing project costs VND9.5 million per square meter with the rent of VND68,904 per square meter a month while apartment project Nam Long-Hong Phat has the selling price of VND12 million per square meter, the rent VND58,750 a month.
A housing project for low-income people in the Northern City of Hai Phong’s An Duong District has the price from VND8 to VND10.6 million per square meter and the rent from VND55,000 to VND73,000 per square meter a month while another project in the same district fetches VND 14.5 million per square meter with the rent at VND89,000 per square meter a month.
The Ministry of Construction announced that it is studying, reviewing, and amending the Law on Housing, the Law on Real Estate Business, formulating a National Housing Development Strategy to 2030 and a vision to 2040 to balance the housing supply and the market demand, contributing to the stabilization of real estate market.
The Ministry of Construction also suggested localities promote the supply of social housing for low-income people in urban areas, industrial park workers, and affordable commercial housing for middle-income people. Moreover, local administrations should adjust the structure of the housing and real estate market to suit the needs of the market.