HCMC tackles crisis of unsold housing inventory

The People’s Committee of Ho Chi Minh City convened a meeting on June 4 with related departments associated with housing and construction to discuss the ongoing crisis of unsold housing inventory in the City.

HCMC will complete construction of 3,000 new social housing apartments in 2013 to meet demand for government employees, military personnel and low-income earners (Photo: Bao Long)

According to statistics given by the Department of Construction, around 308 condominium blocks in HCMC have had to put on hold all construction for lack of buyers and frozen property market.

But on the other side, 736 projects in the City have been implemented, such a 118 in District 2 and 92 in Binh Tan District.

Since the beginning of the year, 1,877 apartments were sold, accounting for 13 percent of total apartment inventory but 12,613 apartments are still unsold, which are worth VND22,414 billion ($1million).

After the Government issued a Decree to ease difficulties for realty businesses, the Department of Construction has received proposals to convert commercial housing projects into social housing projects.

Since then, a 360 apartment project in District 2 will be converted into a hospital and three other commercial housing projects in Districts 2, Tan Phu, and Binh Chanh will convert to social housing projects.

The Department of Construction said it will complete construction of 3,000 new social housing apartments in 2013 to meet demand for government employees, military personnel and low-income groups.

In related news, on June 4, VietinBank in Nha Be District and Hiep Phuoc Industrial Park signed a contract in which the bank will give credit aid to Hiep Phuoc Industrial Park for the second phase with a  loan of VND555.5 billion($26,624,933) for a period of 62 months.

On June 4, the State Bank of Vietnam held a meeting with five banks, namely Vietnam Bank for Agriculture and Rural Development, Bank for Investment and Development of Vietnam, Vietnam Joint Stock Commercial Bank for Industry and Trade, Bank for Foreign Trade of Vietnam, and the Mekong Housing Bank about the government credit aid package of VND30 trillion ($1.44 billion) for low income groups, who can borrow at only 6 percent a year to purchase apartments under social housing projects.

As per the agreement between State Bank and five banks, the latter have assigned money for the program and will target borrowers for the loans. Disbursement has been on since June 1 and will continue until the central bank disburses all VND30 trillion ($1.44 billion) in next 36 months.

By staff writers - Translated by Anh Quan

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