Luxury apartment projects must reserve 20% of land fund

Mr. Nguyen Manh Ha, Director of the Department of Housing and Real Estate Market Management, said that the Ministry of Construction will include this recommendation in the Draft Decree.

At the program to listen and discuss the supply and demand of social housing, Mr. Nguyen Thanh Toan, Deputy Director of the Department of Planning and Architecture of Ho Chi Minh City, said that the Department will propose that the City recommend to the Government that all projects must reserve 20% of land fund for social housing, not just projects over 10 hectares as at present.

Mr. Nguyen Manh Ha, Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) said that the Ministry will include this proposal in the Draft Decree, but whether it is accepted or not and when it will be implemented will be decided by the Government.

Previously, the allocation of 20% of land fund for social housing in all projects was also mentioned by Deputy Minister of Construction Nguyen Tran Nam.

However, the proposal to reserve 20% of land fund for all projects makes many high-end real estate investors worried, especially for high-end resort or villa projects.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that reserving 20% ​​of the land fund is necessary, but should be considered for each project, it can be converted into another land plot, or converted into money and the investor must pay that amount. That amount is used to implement social housing in another location.

In projects with high selling prices, fully equipped with large shopping malls, luxury hotels and restaurants, and high service fees, if social housing is arranged, the buyers will not dare to live there.

Sharing the same opinion, the Danang Department of Construction said that the regulation that social housing must be available in all apartment buildings will destroy the landscape and aesthetics of high-end villa projects.

Regarding this issue, Mr. Nam frankly said: “It is not right in the building, but that does not mean that it cannot be arranged in dozens of hectares, even hundreds of hectares. It can be arranged right next to it, the better the social housing benefits from the surrounding infrastructure for the people. There is no such thing as social housing having to be in the suburbs, in the fields, in the fields”.

While investors of high-end projects are concerned, investors of low-cost commercial projects support this proposal.

Mr. Le Huu Nghia, General Director of Le Thanh Company, said that if the State converted it into the number of apartments, it would be great. Enterprises do not have to pay a large amount of money in advance, but only hand over the apartments when the construction is completed, the State will definitely collect the money in the form of apartments, people will have a house to live in immediately without having to wait for the construction time like other projects.

In fact, some projects in Ho Chi Minh City have applied this method such as Project 19/19 Lac Long Quan or Project Carillon Hoang Hoa Tham.

While the issue of allocating land for social housing in all projects in Vietnam is still a proposal and debate, in the US, the Government of this country stipulates that at least 5-10% of apartments must be reserved for social housing. Priority is given to first-time homebuyers with a salary equal to 60% of the national average salary./.

According to vov