Announcement of 2%/year interest rate support to buy houses and projects to benefit
The Ministry of Construction said that, on May 20, 2022, the Government issued Decree 31 on interest rate support from the state budget for loans of enterprises, cooperatives and business households in which have social housing and renovate old apartments.
Accordingly, the ministry asked the People’s Committees of the provinces and centrally-run cities to report on social housing and the project to renovate old apartment buildings in the 2021-2025 period.
Specifically, with social housing, it is necessary to clearly report housing needs for low-income subjects in urban areas and industrial park workers; implementation situation and loan demand (if any); difficulties, problems and recommendations.
With the renovation of old apartments, it is necessary to pay attention to the list of renovation projects; implementation situation and loan demand.
The Ministry of Construction requested the People’s Committees of the provinces and centrally-run cities to closely review and take responsibility for the proposed projects, ensuring compliance with the law. These reports are sent to the Ministry of Construction before June 10, 2022.
Recently, the Government issued Decree 31 on interest rate support from the State budget for loans from enterprises, cooperatives and business households. The support package is part of the approved plan from the socio-economic recovery and development program, and the interest rate support capital for businesses, cooperatives and business households is VND 40,000 billion.
In which, the supported subjects are enterprises, cooperatives and business households with the purpose of using loan capital to implement projects on construction of social housing, housing for workers, renovation of old apartment buildings on the list of projects synthesized and announced by the Ministry of Construction.
In addition to the above support package, the construction industry also offers a support package for preferential loans through the Bank for Social Policies with individuals and households to buy, rent and buy social housing, housing for workers; build new or renovate and repair houses according to the policy on social housing with a maximum loan capital of 15,000 billion VND.
Worrying trillions have no place to spend
Sharing at a previous seminar, Mr. Nguyen Manh Khoi, Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) said that in two years (2020-2021), the real estate supply decreased sharply, in 2021 housing supply will decrease by 34% compared to 2020, in 2020 the number of new projects will decrease by 50% compared to 2019. Social housing has almost no new licensed projects, while this is a segment with high demand. highest demand.
According to Mr. Khoi, the program of economic recovery and development is an opportunity for the real estate market.
“15,000 billion VND to support tenants and buy houses with low interest rates, but now where can I get the supply to let people buy social housing? That is, in order to disburse VND 15,000 billion above, there must be a supply of social housing for the people. So, in 2 years, will you spend 15,000 billion?”- Mr. Khoi said.
In the period 2011-2020, the whole country only implemented 248 social housing projects with about 100,000 apartments, reaching only 41.4% of the plan. According to the results of the state audit of the social housing program in Hanoi, out of a total of 15 social housing projects, there are 2 projects that have not been implemented, 7 projects that have not been approved for investment policies, 1 The project has no information on implementation status, 2 projects have stopped being implemented and 3 projects have been approved to convert investment into commercial housing. In Ho Chi Minh City, in the period 2016-2020, it has made great efforts, but only nearly 15,000 apartments have been completed, reaching 75% of the plan.
But it must also be recognized the fact that although social housing is always in a state of insufficient supply and demand, there is still a adversity that many social housing projects “swelling” even though the price is only around 10 million VND/m2.
It can be mentioned as the project of social housing and commercial services AZ Thang Long (trade name Bright City) in Hoai Duc district, Hanoi, invested by Thang Long Confectionery Company Limited. The project has a total of 1,496 apartments, of which 264 are for sale; 911 apartments for sale and 312 apartments for rent. The estimated selling price of the apartment in this project is more than 14 million VND/m2 (excluding VAT and 2% maintenance fee). However, from the first sale in 2015 to the 23rd opening for sale, the project has only sold 847 apartments and 113 houses for rent.
This was originally a commercial housing project, but during the implementation process, the project has been “covered” many times. By 2014, the investor would like to convert this project to a social housing project. AZ Thang Long is a social housing project in the credit package of VND 30,000 billion.
Also in Hanoi, a Another social housing project is Bamboo Garden of CEO Group Joint Stock Company in Quoc Oai district is the project that the investor converted from commercial housing to social housing project since 2014 in order to enjoy the preferential package of 30,000 billion VND.
The project has a total of 432 apartments, including 346 apartments for sale, 86 apartments for rent. The temporary selling price of social housing apartments is less than 10 million VND/m2 (including VAT and maintenance fees). With such a cheap price, this project is still open for sale more than 20 times, but it is still not over.
Assessing this situation, many real estate experts believe that people buy houses to live in and that place must also have buildings that meet the minimum needs in their lives such as utilities, schools, etc. Hospitals, transport infrastructure…
Meanwhile, areas far from the center often lack many conditions in terms of transport connections with other areas, low quality of social infrastructure and services. Where there are many agencies, businesses, and organizations that generate a lot of labor, there are very few affordable and affordable housing projects. This causes a paradox in the fact that people’s demand for housing is still very large, especially for those with low and middle income, but there are still projects like Bright City, Bamboo Garden open for sale this year. year after year, still.
Experts say that this is also an issue to keep in mind when implementing support packages in the near future.
Up to now, the whole country has completed 275 social houses, with about 147,000 apartments. The whole market is continuing to deploy 339 other projects, with about 371,500 new apartments, coming to the market.
However, the number of such housing projects has yet to meet expectations. According to the leader of the Ministry of Construction, the main reason is the lack of land fund to build social housing; problems in the investor selection procedure; There is a lack of preferential capital and the incentive mechanism for investors is not substantial and not strong enough to attract businesses.
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at Blogtuan.info – Source: vietnamnet.vn – Read the original article here
