The real estate market is skewed ‘supply – demand’

Minh Hoàng
April 24, 2021

(TBTCO) – By 2020, the whole construction industry will complete the construction of more than 5.2 million m2 of social housing. However, the number of houses mentioned above cannot fully meet the expectations of people with low average income, and the demand for social housing is still very large.

High-end segment is oversupply – lack of social housing

– In the Decision No. 2127 / QD-TTg on approving the National Housing Development Strategy to 2020 and a vision to 2030, the Prime Minister asked to focus on studying, amending and supplementing synchronous mechanisms. policy on planning, land, finance and science and technology; work out plans to mobilize resources of all economic sectors to participate in the development of housing under the market mechanism.

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The amount of social housing built is not enough compared to the needs of the people. Photo: Tuan Nguyen

– Specifically, the National Housing Development Strategy to 2020 and a vision to 2030 sets the national average housing area by 2015 to reach about 22m2 / person, of which 26m2 / floor in urban areas. and in rural areas, it is 19m2 / person; strive to achieve the minimum housing area target of 6m2 / floor / person.

– According to information from the Ministry of Construction, the whole construction industry has so far completed the construction of more than 5.2 million m2 of social housing (social housing). However, the number of houses mentioned above cannot fully meet the expectations of people with low average income, and the demand for social housing is still very large.

– The Ministry of Construction also noted, in general, the structure of real estate goods (real estate) has been adjusted step by step, but still not really reasonable, there are still signs of oversupply in some High-end real estate segment in big urban areas, while there is a lack of segments of low-cost commercial housing and social housing. Some businesses still focus on investing in high-end real estate, resort real estate, do not attach importance to investing in affordable housing, rental housing, and social housing to meet the needs of the majority. The part of the people is still limited in income, especially the poor, the low-income people in urban areas, workers in industrial zones and economic zones.

– Mr. Le Hoang Chau – Chairman of City Real Estate Association. Ho Chi Minh City (HoREA) said that the real estate market is said to be out of the supply-demand phase, when the number of high-end real estate projects overwhelms the rest of the segment, especially the affordable housing segment. and Social Place.

– Typically in TP. In Ho Chi Minh City, in 2020, there are 31 projects certified by the Department of Construction to mobilize capital for future housing products, with a total of 16,895 houses, a decrease of 30.4% compared to 2019. In which, there are 7,114 houses in the high-end housing segment, accounting for 42.1% and up 15.9% compared to 2019; Mid-end housing segment has 9,618 units, accounting for 56.9% and increases 66.2% compared to 2019. Meanwhile, the affordable housing segment has only 163 units, accounting for only 1%, down to 98.6% compared to 2019. The market currently lacks supply of low-priced housing, social housing, office combined with accommodation …

Many mechanisms to promote social housing development

– To continue promoting the development of social places to serve the needs of people, the Ministry of Construction has continued to propose amending and supplementing a number of regulations related to the development of independent social places projects, regardless of scale. using land.

– Specifically, the Ministry of Construction has submitted to the Government No. 63 / TTr-BXD on promulgating a Decree amending and supplementing a number of articles of the Government’s Decree No. 100/2015 / ND-CP. In particular, the Ministry has proposed to amend and supplement a number of regulations related to the development of independent social housing projects (regardless of land use scale), such as: Supplementing regulations on policy approval. invest and collect appraisal opinions to approve the investment policy for investment projects to build social places in the direction of synchronous investment law and housing law.

In the 2016 – 2020 period, Hanoi aims to build about 6.2 million m2 of social areas, up to now, about 4.04 million m2 of floor area has been deployed. According to the plan of developing a social place for the period 2021 – 2025, Hanoi strives to build about 5 million m2 of new social place floor. Thus, by 2025, the city needs to invest in new construction of about 7.22 million m2 of social places (of which 2.2 million m2 is backlog from 2016 to 2020).

– Add the concept “Investment project to build a social place” to create a legal basis for the contents of guidance on construction investment procedures, procedures for investor selection, and determination of incentives for owners. Investment in construction projects of social places …

– Amend and supplement a number of mechanisms and policies to support and encourage investors of the social housing project in the direction: Allow the social housing project of the apartment type to be adjusted to increase construction density or land use coefficient to ensure that ensuring consistency with the law on planning and feasibility; The investor of the project is entitled to spend 20% of the total residential land invested in the construction of a technical infrastructure system within the scope of the project of social housing construction (including projects using 20% ​​land fund) to invest in the construction of commercial houses to offset investment costs, contribute to reducing selling prices, renting prices, renting and buying social places, and reducing costs for management and operation of social places after investment.

– It is allowed to deduct compensation and ground clearance costs when investors have to fulfill their financial obligations to the locality; supplementing preferential regulations for the investor who completes the investment in the construction of technical infrastructure within the scope of the social place construction project within 12 months from the date of land allocation or land lease, it will be issued by the People’s Committee. The province supports the connection of the technical infrastructure system in the project with the general technical infrastructure system of the region …

– In particular, in 2021, the Ministry of Construction will actively coordinate with the City People’s Committee. Hanoi in researching and proposing criteria for selecting an investor for an independent social place project, including an independent large-scale project (from 50 ha or more) in the research and construction process. The Circular details the Decree amending and supplementing a number of articles of the Government’s Decree No. 100/2015 / ND-CP, which is expected to be issued in 2021.

Source: VAN TUAN