Increasing social housing area: Concerns about policy profiteering

That is the concern of experts when some real estate businesses proposed houses with an area of ​​90m2²also enjoy the same benefits as social housing.

The draft Decree on the development and management of social housing, which is being consulted by the Ministry of Construction, has increased the maximum area of ​​a social housing apartment to 90m2.², instead of 70m²as it is now. The question is whether this proposal is really reasonable for low-income people and how it will affect the development of social housing.

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The reason given by the Ministry of Construction for proposing to increase the maximum area of ​​social housing to 90m2²is to meet the housing needs of large, multi-generational households. As of now, a family of 7-8 people lives in a 60-70m2 apartment.²is overloaded. And in fact, many real estate businesses also support this proposal of the Ministry of Construction.

Mr. Luu Minh Ngoc - General Director of Bac Son Investment and Development Joint Stock Company said: "This regulation will give businesses many opportunities to choose different types of areas to build houses, meeting the needs of buyers."

However, with the current selling price of about 12 million VND/m2, each social housing unit has an area of ​​90m2.²will cost about 1 billion VND. This price will be difficult to sell to low-income people, the 30,000 billion VND loan package for low-income people will also be difficult to meet all the demand.

According to Mr. Pham Sy Liem - Vice President of Vietnam Construction Association: "With only 30,000 billion, when the house area increases, instead of 2 people being able to borrow, only 1 person will be able to borrow due to the increase in apartment prices. This will not serve many people".

Another aspect that experts have also raised is that if the proposal to increase the social housing area to 90 square meters is approved, many real estate businesses will benefit when converting similarly sized unsold apartments into social housing.

Although the conversion from commercial housing to social housing can help businesses release large apartment inventory, the conversion is not easy, due to complicated procedures. However, some real estate businesses have also proposed 90m2 houses²also enjoy the same incentives as social housing. This shows that the concern of experts about taking advantage of policies to push goods when proposing to increase the maximum area of ​​social housing from 70 to 90m2 is well-founded.

According to vtv.vn