The Ministry of Construction recently issued information saying it is studying and reviewing to propose solutions to establish a National Housing Fund. And up to now, the Ministry of Construction has proactively assigned specialized units to urgently research international experiences, review current legal regulations and propose solutions for implementation.
The real estate market is developing in a phase-off, causing a serious shortage of affordable housing and social housing. According to statistics, from 2021 to now, Ho Chi Minh City has not had apartments priced under 25 million VND per square meter. The average price of newly opened apartments in the area is about 50 million VND per square meter and has continuously increased over the years. Apartments priced under VND40 million per square meter in the area have also become a rare item.
Even in satellite markets, housing prices are no longer cheap. The scarcity of land funds in large cities and the continuous increase in selling prices have caused the affordable housing segment to gradually disappear. This increases the gap between actual needs and the affordability of the majority of people.
Faced with that reality, experts assess that the establishment of a National Housing Fund at this time is a breakthrough solution, helping to solve the housing needs of policy beneficiaries and low-income workers, ensuring social security, and creating conditions for people to settle down.
Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association - suggested that it is necessary to develop a strategy for developing affordable commercial housing, while promoting the social housing segment. The establishment of a National Housing Development Fund on a larger scale will not only support the construction of social housing but also aim to promote the supply of affordable housing, through mechanisms suitable for each type.
Experts also have the view that the most important thing is the way the fund operates for the right purpose and subjects. Preferential loans from the fund need to be flexibly designed to suit the ability to pay for each group, along with clear commitments to ensure that the fund's resources are not used for the wrong purpose, avoiding profiteering from support policies.
Ms. Do Thu Hang - Senior Director, Research and Consulting Department of Savills - expressed the view that the fund needs to focus on financial support for people who want to buy or rent a house at an appropriate price. In fact, many workers with low average incomes do not meet the conditions to buy social housing but do not have the financial capacity to own commercial housing, especially in large cities. Therefore, there needs to be a mechanism to evaluate the contribution level and payment capacity of target groups to ensure fairness and compliance with the target.
In addition to contributions from workers, businesses and the state budget, for the National Housing Fund to operate sustainably, it is necessary to encourage the participation of real estate businesses. In return, the state can apply preferential policies such as tax exemptions, financial support, etc. to attract investment in the social housing segment.
Building a large model like the National Housing Fund requires taking into account many factors so that when implementing, there will be no problems and waste. Factors such as legal framework, management structure, capital sources, financial support mechanisms, public-private coordination, supervision mechanisms, etc. are all major issues that need to be clearly built, Savills experts stated.
