HCMC quickens low-income housing investment

Boomtown: HCM City has high demand for low-income housing. About 480,000 families who are legally registered to live the city with an official red book do not own an apartment or house. - VNA/VNS Photo

Social housing is built to accommodate the poor, near-poor, State staff, and people who have been recognised as making a great contribution to the country’s revolutions.

Speaking at a forum held in HCM City on early this week, Trần Trọng Tuấn, director of the Department of Construction, said a one-stop policy will begin in October to ensure faster granting of licenses to investors.

Investors will only have to apply for licenses at one agency, the Department of Construction.

From 2006 to 2015, the People’s Committee approved 51 social housing (low-income) projects with a total of 48,000 apartments, according to the department.

Of the projects, only 12 projects with 3,800 apartments have been completed.  

Slow progress was caused by the lack of preferential policies and shortage of State budget and land funds for social housing projects.

The State supports loans and other preferential treatments for social housing but administrative procedures are complicated. In addition, investors’ profits from such housing cannot exceed 10 per cent of investment capital.

Trương Anh Tuấn, general director of the Hoàng Quân Consulting Trading Service Real Estate Joint-Stock Company, said that his company had spent two years to complete procedures to invest in a social housing project in District 2. He said other provinces required only a few days.

Lê Hữu Nghĩa, director of the Lê Thành Company Limited, said many low-income people live in 10-sq.m rooms that have monthly rental of VNĐ1.2 - 1.5 million (US$55-68).

He said the city administration should invest in social housing for rent instead of for selling.

Lê Hoàng Châu, chairman of the city’s Real Estate Association, agreed, saying that the building of social housing for rent would better meet the city’s situation.

Tuấn, director of the Department of Construction, said research on the proposals would be conducted and submitted to the People’s Committee.

About 480,000 families (who are legally registered to live in the city) do not own housing, according to the Department of Construction. This does not count the number of migrants who are not legally registered with an official red book in the city.

"The Department of Construction plans to build an additional 39 social housing projects with 44,700 apartments in the next five years. Of the apartments, 30,000 will be completed by 2020,” Tuấn said.

To meet the target, the department has asked district people’s committees to review their land funds and allocate land for construction of social housing.

he HCM City Department of Construction plans to speed up the granting of investment licenses for social housing projects and redress administrative procedures to provide housing to low-income residents.