HoREA recommends increasing construction density of low-cost housing projects

Allowing an increase in the construction density of social housing projects will help increase supply and reduce costs, according to the HCM City Real Estate Association. Photo vietstock.vn

HCM CITY – In order to realise the goal of building a million social housing units by 2030, the HCM City Real Estate Association (HoREA) has proposed many measures to increase supply and reduce prices.

HoREA proposed that the city should allow investors to increase construction density to 1.5 for social housing projects. Thus, on the same land area, the number of social housing built will be 1.5 times more than commercial housing.

Lê Hoàng Châu, chairman of the HoREA, said that if this proposal was accepted by the city, it would increase the supply of social housing on the market and reduce the cost of social housing due to compensation and site clearance.

On the other hand, this regulation would also have the effect of encouraging businesses to invest in social housing projects instead of other commercial projects, Châu added.

According to HoREA, the real estate market currently has a serious shortage of low-cost housing projects, but the mid- and high-end housing segments have a surplus.

Therefore, allowing increased construction density of low-cost housing projects will contribute to adjusting the structure of housing products and reduce house prices in the real estate market, according to Châu.

To attract more businesses to invest in social housing, HoREA previously proposed that the city add or strengthen preferential policies for investors of social housing projects.

HoREA has proposed that the Government consider raising the standard profit level for social housing project investors from 10 per cent to 15 per cent if businesses can arrange their own land funds.

On the other hand, in order to support capital sources for businesses, the Government should consider allowing investors to mortgage their social housing projects after acquiring a land fund, instead of having to mortgage another asset.

In addition, the Government should also consider allowing businesses to lease their social housing instead of only allowing sales.

The sociological report of the City Labour Confederation shows that about 60 per cent of immigrant workers only want to rent a house, not buy a house.

To meet the rental needs of migrant workers, the City currently has about 60,000 individuals and households investing in more than 560,000 boarding houses for rent. This contributes to solving the housing rental needs of more than 1.4 million immigrant workers. – VNS