HCMC encourages the construction of apartment buildings and social housing | Ho Chi Minh City

Many residential construction projects are underway along Thu Duc City subway station

It is estimated that from 2021-2025, the population of HCMC will be 10.25 million and needs 367,000 houses in an area of ​​50 million square meters, reaching the ratio of 23.5 m2 per person in 2025. Over the next 5 years, when the population reaches 11.29 million, the city will need to use an additional 57.5 million square meters for residential purposes to increase the ratio to 26.5 million2 per person.

In the first period from 2021 to 2025, the city plans to develop 40.7 million square meters of single-storey houses under the single-family house construction project and 9.3 million square meters of apartment buildings. to apartments. 5 years later, it will be time to build more one-storey houses on 44.7 million square meters and apartments on 12.8 million square meters.

The construction department of HCMC said that these residential projects over the next 10 years will require a large capital of VND 1.52 quadrillion ($65.4 billion), which is expected to be raised from businesses, credit organizations , accumulated household capital and other sources. The development of public housing will take the capital from the mobilization of the contribution of enterprises, preferential credits and 10% of the city budget.

The total area needed to develop housing over the next 10 years will be 5,239 ha, including 4,788 ha of commercial residences and 451 ha of social housing.

To fulfill these missions, HCMC promotes the growth of apartment buildings and land use around subway stations, increases the proportion of rental housing to meet the demands of low-income residents, and offers a variety of payment methods like rental, rental-purchase, purchase, with priority for companies that build rental housing and housing below market prices.

In the city center, HCMC is accelerating the development of apartment buildings, along with corresponding infrastructure upgrades to avoid overcrowding. The districts of 7, 12, Binh Tan and Thu Duc City will focus on project-based housing development, while the suburbs will focus on infrastructure growth for below-market housing projects to serve immigrants. from the city.

HCMC Construction Department Director Tran Hoang Quan confirmed that HCMC has land resources for 70,000 public houses; however, only 13 such construction projects are entering the clearing phase. When all 33-34 projects have completed this stage, the land for social housing will be over. Municipal authorities pay great attention to the growth of this type of housing and create favorable conditions for private companies to carry out their social housing projects. Anyone in difficulty can ask the State to help them choose investors.

President Phan Van Mai said there must be both short and long term directions for housing development in HCMC, with careful analysis of market demands, social security policies, as well as consistency with the development of urban space, land use planning and infrastructure. .

During urban planning and industrial park planning, the city should allocate land resources to residential areas. Commercial residences and industrial park projects must essentially include spaces intended for public housing. Transparency in the choice of investors through auctions for urban development projects is also desirable.

He added that to solve the problems related to capital, the city should encourage the participation of all economic sectors in residential projects, use all possible sources of capital from banks, legal mobilization. The city can adopt preferential tax policies such as tax exemption or VAT reduction for companies that build social housing. More importantly, the real estate market should avoid evil intentions, while the city should reform administrative procedures to save money for investors.

The general manager of Phuc Khang Corp said that to fulfill such huge housing and infrastructure development missions in the next 10 years, there must be close cooperation between the government and companies to ensure the legal aspect. and speed of these projects.

Urbanism and planning expert Dr Nguyen Minh Hoa suggested that HCMC needs more appropriate mechanisms, roadmaps via better housing policies, favorable conditions for the private sector to join the game, appropriate policies allowing households to borrow money for the repair or construction of housing. HCMC’s target of 100,000 public housing units for the poor requires credit support, as the alarming state of HCMC’s large property companies shift their focus to housing in other provinces, which may lead to a lack of resources.

By Do Tra Giang – Translated by Yen Nhi

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