To bring the "boost" from the 30,000 billion credit package into life

Deputy Prime Minister Hoang Trung Hai, Head of the Central Steering Committee on housing policy and real estate market, has just chaired a meeting with ministries and branches on the implementation of Resolution No. 02 of the Government and the disbursement of the VND30,000 billion credit package for housing support loans.

Deputy Prime Minister Hoang Trung Hai said that the results of implementing the preferential credit support package of VND30,000 billion are still very modest. Photo: VGP/Nguyen Linh

After the Government decided on a preferential credit support package of 30,000 billion VND and the National Assembly adjusted the tax reduction for social housing and commercial housing with an area of ​​less than 70m2 and a selling price of less than 15 million VND/m2, real estate prices continued to decrease. Most projects decreased by 10-30% compared to the end of 2012, some projects decreased by 50%.

Positive reactions

According to reports from 55/63 localities, the total inventory value of housing development projects is about 102,000 billion VND. Of which, there are about 23,007 apartments, 15,000 low-rise houses, 10.6 million m2 of residential land, and 2 million m2 of commercial land. Thus, the inventory value has decreased by 26,660 billion VND compared to March 2013.

The Ministry of Construction, after conducting an interdisciplinary inspection of 11 key areas, has compiled statistics showing that there are currently 4,015 housing and new urban area projects nationwide, with a total investment of VND4.5 million billion and a total planned land area of ​​102,228 hectares. Currently, the number of projects continuing to be implemented is 3,154 (78.6%) with a land area of ​​78.7%), the number of projects requiring structural adjustment is 455 (12%) with a land area of ​​about 21,087 hectares. The number of projects temporarily suspended is 524 (13%), with a land area of ​​16,865 hectares.

The State Bank said that the real estate credit situation has begun to change, lending in the real estate sector is changing more positively, banks have started lending again for urban area projects, offices, home repairs, etc.

Social housing implementation is still slow

According to the Ministry of Construction, to date, the country has 96 completed social housing projects with a scale of 31,850 apartments, with a total investment of VND8,820 billion, of which 34 projects are for low-income people, with 18,850 apartments; 62 housing projects for workers with 13,000 apartments.

There are currently 125 other social housing projects under construction with 79,000 apartments, including 86 low-income housing projects with a scale of 52,000 apartments and 39 housing projects for workers. Currently, Hanoi is implementing 18 projects with about 19,600 apartments, Ho Chi Minh City has 14 projects with over 6,600 apartments with prices ranging from 8-11 million VND/m2.

Along with that, there are currently 57 projects registered to convert commercial housing to social housing with a scale of 34,837 apartments; 52 projects adjusting the apartment structure with the number of registered units adjusted from 25,917 units to 32,922 units.

According to the Ministry of Construction, the implementation of social housing is moving in line with the current market supply and demand situation. However, the implementation of the housing support credit package is still facing many difficulties. After 5 months of implementation, the number of projects proposed for loans is 72 with a total loan of 6,657 billion VND, but only 7 projects have been approved with a total amount of 870 billion VND and disbursed to 4 enterprises with an amount of 91 billion VND. For individuals, banks have committed to lending 939 customers with an amount of 325 billion VND, disbursed to 920 customers with an outstanding loan of 221 billion VND.

According to the State Bank of Vietnam, the low disbursement is due to the scarcity of social housing and commercial housing with an area of ​​less than 70 square meters and priced below VND15 million/square meter at this time. Among the projects proposed to borrow from the VND30,000 billion package, many projects have not completed the procedures.

Some comments from banks also reflected procedural difficulties related to the notary office not agreeing to notarize the Mortgage Contract for future secured assets, which is a house formed from borrowed capital. Similarly, the commune-level confirmation procedure for the current housing status is still difficult and is considered not convenient for people in need.

Overview of the meeting. Photo: VGP/Nguyen Linh

Removing procedural obstacles, boosting social housing supply

Concluding the meeting, Deputy Prime Minister Hoang Trung Hai acknowledged the efforts of ministries and local agencies in implementing Resolution No. 02 on solutions to remove difficulties for the real estate market in recent times. However, the Deputy Prime Minister also said that the results of implementing the preferential credit support package of VND 30,000 billion are very modest, the disbursement level and the number of beneficiaries have not met the goals of an important and urgent policy as well as the urgent needs of the people today.

The reason why a good policy has not really entered the responsible life of relevant agencies is that it has not created a truly attractive supply source and has not yet cleared procedures, facilitating the flow of State support capital to the beneficiaries.

In that spirit, Deputy Prime Minister Hoang Trung Hai requested the Ministry of Construction and localities to continue reviewing and promoting the implementation of social housing projects, resolutely ensuring the 20% land fund as prescribed for this type of housing. The Ministry of Construction directly urges, supervises the volume, surveys each project as well as beneficiaries, grasps and handles arising issues so that the project implementation is smooth, on target and effectively supports preferential loans from banks.

Regarding construction and loan procedures, in addition to urgently developing, submitting for promulgation and issuing documents and legal frameworks related to social housing, the inter-sectoral Justice, Construction, and Natural Resources and Environment, the State Bank quickly issued instructions to resolve the issue of mortgages on future housing. The State Bank provided instructions on a number of procedures related to loans and debt repayments by customers for unified application in the system.

Localities, especially Hanoi and Ho Chi Minh City, closely coordinate with ministries and branches to continue reviewing and classifying projects to adjust the structure and type of housing to suit market demand and social resources. Develop construction criteria and data, thereby providing standard assessments of scale, demand, and current procedures in the spirit of creating more favorable conditions for businesses and beneficiaries.

According to Chinhphu.vn