Social housing project in Hanoi’s Dang Xa area
Low-income earners complained they have to wade through mountains of paperwork involving various authorities and banks to prove their incomes are low enough to be eligible, only to hit a brick wall.
Even though social housing projects are supposed to assist low-income earners, offering exemptions on land fees and low interest loans, prices of such apartments in Hanoi and elsewhere are too high for them to afford, and vary widely.
Some projects wants VND9m a square metre, while others priced at VND14-15m a square metre, which are almost as high as commercial housing projects.
The Ministry of Construction said demand for social housing was expected to reach one million apartments in urban areas. with demand in each of HCM City and Hanoi at 130,000-140,000 apartments.
The ministry said housing projects have yet to meet demand ,and construction has stalled.
Construction Minister Trinh Dinh Dung attributed the situation to the lack of guiding regulations, and the absence of investment in social housing development.
“In order to step up social housing project, it is necessary that authorities at both local and central levels map out annual social housing development plans,” Dung said.
“Localities need to set aside land funds for such projects and encourage experienced investors," he said.