HCM-based real estate businesses show low interest in social housing

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   08/11/2017

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   HCM-based real estate businesses show low interest in social housing

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   HCM-based real estate businesses show low interest in social housing, serviced apartment for rent in hcmc

   The reason businesses have less pulling power for social housing development includes limited land resource, excessive investment costs but minimal lack and profit regarding effective supporting policies via city authorities.

   Le Hoang Chau – Chairman of the Ho Chi Minh Real Estate Association (HoREA) said the existing interpersonal housing projects mainly produced from 2009 to 2014, when the real estate market was frozen as well as developers changed commercial real estate projects to social kinds.

   The actual known fact that most public housing projects in HCMC have had bad prestige

   would make property companies not want to develop this type or kind of houses.

   Recently, construction of these projects has been started out. In May 2016, HCM government approved 2 fresh social projects including: condominium project CC1, developed by Structure No . 1 Co. Ltd on Nguyen Van Dung Street (Go Vap District) and a residential-commercial complex, manufactured by Phuc Phuc Yen Investment decision Co., Ltd in Suntan Thoi Nhat Ward (District 12).

   According to Nguyen Nam Hien – General Home of Hung Thinh Real-estate Company, the reasons businesses have less fascination with social housing development comes with limited land resource, high investment decision costs but low earnings and lack of effective supporting policies from city government bodies.

   A representative of Himlam Property, which is the developer regarding affordable housing project in Phu Dong, said, however the price of apartment in the venture is only VND1 billion every unit, it is still a commercial housing undertaking, not a public one.

   He said: We lower price of our apartment job just because its location is far away from the city facility. However , it’s still offered as a commercial housing task. Developing a social housing project may harm our reputable brand.

   The fact that almost all social housing projects within HCMC have had bad stature makes property companies not need to develop this kind of housing.

   In addition to, on account of different opinions among ministries and agencies, the implementation associated with governmental policies for social housing under the 2014 Houses Law are being obstructed. As outlined by Le Hoang Chau, this really is another reason why real estate companies have shown low interest in social housing.

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