Social housing projects are now underway and people for whom owning a house is almost a dream are now in a much better position.
The hopes of low-income earners, workers and students looking for social housing rose recently after the Hanoi Construction Department announced it would start to accept documents for renting and buying in April. According to Mr Vu Ngoc Dam, Head of Housing Development under the Hanoi Department of Construction, the Hanoi Peoples Committee will propose regulations on buying and selling social housing in March. Because the amount of social housing has been limited, initially the Department of Construction and the Hanoi Department of Labour, War Invalids and Social Affairs will confirm eligibility based on regulations submitted to the Hanoi Peoples Committee.
It is nearly a year since the first social housing of large scale in Hanoi officially broke ground, at Viet Hung town in Long Bien district. The project is being built with State budget funding of VND250 billion ($12.5 million) for 800 apartments, of which 500 are for renting and 300 for rent-buy. According to the Hanoi Department of Construction, the Viet Hung project is one of the first to be carried out under Decree 90/2006/ND from the government regulating in detail and guiding the Housing Law. The first social housing project getting of the ground will bring a great deal of hope to many.
Ms Trang, a primary school teacher, said she was happy to hear the news as she thinks she may have the opportunity to own a house. Her family was looking to buy but have limited financial ability as both she and her husband are public servants. She is currently renting a 20 sq m house for VND1.5 million ($85) per month. With four people in the family, space is limited. We are saving to buy a house but it is not easy in such an expensive land market, she said.
Similar to Ms Trang, Mr Vinh has kept track of the housing projects for low income earners and was optimistic when the Hanoi Department of Construction prepared to confirm eligibility for buying a house. My dream can come true, he believes. He is an army officer and lives with his family in a house belonging to his office. He is looking for a house to buy, but its difficult when the combined salary of he and his wife is only VND7 million ($389) per month.
In 2009 the government released Resolution 18/NQ-CP for developing social housing projects from social capital sources, including houses for workers in industrial zones, students and low-income earners in urban areas. To date, besides boosting the speed of projects, the Construction Department has now begun to complete procedures for determining who can buy and rent social housing. Mr Dam said that the target of the social housing projects were public servants because it isnt difficult to determine their salaries.
Under Decision 67/2009/QD-TTg issued by the Prime Minister, from June 1, 2010, people who are officers, workers in the military and economic sectors without a house, currently living in a house with less than 5 sq m per person or earning 1.5 million per month can rent or buy a house in a social housing project.
The estimated price for the apartments is between VND200 million ($10,500) and VND400 million ($21,000), considered suitable for low-income earners. The price of social housing is affordable for people like me, who have been renting and trying to save to buy, said Mr Vinh. According to Mr Nguyen Tran Nam, Deputy Minister of Construction, prices are reasonable and quality guaranteed.
Another housing project for workers at the Thang Long Industrial Park in Kim Chung commune, Dong Anh district in Hanoi is also underway. Upon completion it will supply about 10,000 accommodation spaces for workers. Ms Lan, a worker at Thang Long, said that she and her co-workers now rent cramped apartments but at a high price. It isnt easy to rent near the park. With low salaries we cant lease a bigger apartment because we must save money, she said. When asked about social housing for workers, she said she hoped she could rent better accommodation at a lower price.
The Hanoi Peoples Committee is to ratify an investment policy on social housing projects in Sai Dong town in Long Bien district, Ngu Hiep commune in Thanh Tri district, Kim Chung commune in Dong Anh district and Chuong My district. The projects have set a schedule to proceed in the first quarter of this year and there will be some 4,900 apartments in total.
But this supply is still short of demand. According to Mr Nam, all commercial and new town projects must set aside 20 per cent for social housing projects and this regulation has been applied throughout the country. Mr Nguyen Manh Ha, Head of the House and Real Estate Market Management Bureau under the Ministry of Construction (MoC) said: If the number of houses for low-income earners increases then it would solve part of the demand for social housing. It is necessary to check the land fund of every locality, in particular in highly-populated provinces. The MoC will have to specifically plan the land fund for social housing in localities, said Mr Nam.
There are now nearly 60 social housing projects for workers, students and low-income earners registered by local investors for construction from now to 2015. Some projects have been completed in Hanoi, Binh Duong, Thanh Hoa, Vinh Phuc and other provinces. According to Mr Nam, this confirms the determination of the construction industry and provinces in developing social housing programs and implementing the policies of the State to improve living standards.
Source: vneconomy