Social housing (NƠXH) continues to be a hot spot when Hanoi City allocates more land funds. However, businesses and buyers still need support in terms of capital and bank interest rates.
According to experts, social housing in Hanoi is returning to the "focus" as the city continuously allocates more land funds for new projects. This move is not only technical in terms of planning but also a clear signal showing that housing pressure is strongly accumulated in urban areas, where the dream of owning a house for the majority of workers is becoming increasingly distant.
Talking to a reporter from Lao Dong Newspaper, Mr. Tran Dinh Quan - Business Director of Evergreen Bac Giang Sustainable Development Investment JSC said that the first issue is market absorption. In major cities such as Hanoi and Ho Chi Minh City, demand is always high. Hanoi alone has about 2 million people in need of social housing, accounting for about 1/6 of the population.
Meanwhile, in some other localities, the demand is only at a moderate level due to few industrial parks and export processing zones with large concentrations of workers. In addition, in order for investors to access the project, it should not only be assigned to a number of large enterprises but also expanded to small enterprises, especially units that commit to construction, construction and handover progress.
According to Mr. Quan, to develop a social housing project, the operating apparatus needs to be compact, because operating costs only account for about 10%. Therefore, large enterprises are often not enthusiastic, while small and medium-sized enterprises (SMEs) are more suitable.
However, SMEs face difficulties in accessing capital sources. In the context of fluctuating input materials and fuel prices, project implementation becomes increasingly difficult, affecting progress. Therefore, there needs to be support mechanisms such as price stabilization funds or preferential interest rate policies at 4-6% in the first year to stabilize social housing prices, avoid chasing after commercial housing prices.
With a social housing project of about 2,000 units, the implementation time is only about 24 months. If supported with interest rates of 4-6%, the cost per square meter will be significantly reduced. At the same time, there needs to be preferential capital to make it easier for homebuyers to access," Mr. Quan said.
Currently, the land fund for social housing is relatively large, but many small businesses have not yet accessed it, so they need more support in terms of capital and interest rates. Mr. Quan emphasized that social housing prices are at a high level due to increased input costs, many projects are up to nearly 40 million VND/m2. Buyers must pay in advance about 30%, this is a large amount of money for workers, even equivalent to the price of a social housing unit in other localities.
From a market perspective, a paradox is actually existing: the supply of commercial housing increases in value but decreases in accessibility. Real estate prices are anchored high by land costs, finance and profit expectations, while people's incomes cannot keep up. This gap forces many real homebuyers to shift to social housing - a segment considered a "lifesaver" for real housing needs.
According to Mr. Do Van Long - representative of Dova Land Real Estate Company - Hanoi's proactive addition of land funds for social housing can be seen as a "regulating valve" for the market. However, this is only a necessary condition, while the big problem still lies in the implementation mechanism.
Reality shows that many social housing projects are behind schedule due to legal obstacles; profits are controlled, making businesses less interested; and buyers face barriers in approval procedures.
Experts believe that social housing should not only be seen as a supportive policy, but should be positioned as an important component of the real estate ecosystem. When developed correctly and fully, this segment not only solves the social security problem but also contributes to cooling down the price level, reducing speculative pressure and creating a long-term stable foundation.
The issue is that Hanoi needs to go further than land allocation, including reforming procedures, designing financial policies, loan capital sources and attractive interest rates, while linking social housing development with infrastructure planning and employment. At that time, social housing will not only be a temporary solution but become a fundamental solution for the Capital's real estate market.
