State capital plays the role of "bait capital
In the context of continuously high house prices, the dream of owning a house for many people, especially urban youth, is becoming increasingly distant.
The conclusion of General Secretary and President To Lam on the situation of implementing Directive No. 34-CT/TW of the Secretariat on social housing and housing development orientations in the coming time recently emphasized the orientation: Housing development in the coming period according to the market mechanism with the orientation and effective management of the State. The State does not subsidize housing, but also does not completely let the market self-regulate.
In addition to housing for sale, it is necessary to prioritize the development of rental housing, especially apartment models for rent in large urban areas, industrial parks, economic zones, driving zones and important economic corridors.
This shows that the direction of long-term rental housing development is considered a noteworthy shift in the thinking of real estate market development and social security in Vietnam.
Talking to a reporter from Lao Dong Newspaper, Mr. Nguyen The Diep - Member of the Vietnam Real Estate Association - shared that social security, especially social housing and low-income housing, is extremely important for salaried workers or people who do not have sufficient conditions to access commercial housing to have housing.
The conclusion of General Secretary and President To Lam clearly stated the direction for real estate to go in the right direction, meeting current practical requirements.
According to Mr. Diep, this policy does not distort the market mechanism but orients a second market on social security to meet practical needs, when house prices are too high compared to the affordability of the majority of people.
The core thing here is a breakthrough change in thinking, shifting from ownership thinking to usage thinking. To achieve this, state capital plays a role as a source of borrowing capital and creates favorable policy mechanisms for businesses to access resources to build rental houses.
We cannot apply egalitarian thinking because social housing and affordable housing actually account for only about 15-20% of the market. Instead, it is necessary to prioritize strategically and promote both state resources and external social resources" - Mr. Diep expressed his opinion.
Releasing large financial resources for economic development
Mr. Nguyen The Diep emphasized that previously, the construction of houses for rent was mainly carried out spontaneously by outside individuals without a clear policy, but now the State has oriented to create conditions for businesses to participate, creating a completely new turning point.
However, the most important issue is that the rental price must be suitable for the salary of workers in each period. The State needs to have a mechanism to orient and control prices instead of letting them float, helping people feel secure and no longer have the pressure to accumulate to own houses.
This person cited that in countries such as Germany, the US or France, up to 60-70% of people rent houses to save financial resources to invest in bonds, stocks and other economic activities.
Opening up this direction not only meets current requirements but also helps people release a very large financial resource to do business instead of burying capital in real estate.
Dr. Nguyen Van Dinh - Vice Chairman of the Vietnam Real Estate Association, Chairman of the Vietnam Association of Realtors (VARS) said that this is a very noteworthy sign because rental housing has long been a "lacking piece" of the Vietnamese real estate market.
According to Mr. Dinh, in the context of rapid urbanization, high house prices and high labor mobility demand, the development of long-term rental models will help people have more choices of housing suitable to their financial capacity instead of being pressured to own at all costs.
