Limiting building houses to fight overpopulation, experts say

The Ministry of Construction has made an adequate suggestion of allocating the country’s land fund to apartment buildings and limiting the amount of houses in an attempt to cope with the overpopulation, property experts said.

An apartment building is under construction at Binh Thanh District, Ho Chi Minh City (Photo:Minh Tri)

The Ministry of Construction has just suggested allocating the country’s land fund to apartment buildings and limiting the amount of houses in an attempt to cope with the overpopulation.

Statistics from the ministry show there are more than 22 million residential properties nationwide, with houses making the largest part.

“People struggle to buy houses in cities as the amount of available lands is getting low with price surging too high. Therefore, building more houses will waste money and the country’s land fund,” said a property expert.

“Most of local people tend to speculate on property, considering it as the best asset class. People in developed countries, in contrast, only rent houses or pay by installments for a house in many years.”

The expense for building a house remains pretty high. Therefore, allocating the land fund to apartment buildings is the most adequate solutions to lower apartment prices,” said Nguyen Van Hiep, vice director of the Ho Chi Minh City Department of Construction.

The number of apartment buildings in Vietnam just increased steeply in the last 10 years, according to house builders. Among the most comfortable factors apartment dwellers enjoy is the green areas at every buildings.

However, some analysts said local people prefer houses, which are considered as a better investment than apartments.

“Front houses on main streets can be good places to open shops and offices. Some apartment buildings meanwhile are not quite safe and modern. Many apartment dwellers complaint builders set up too many unreasonable fees,” said a director of a HCMC-based property firm.

The Ministry of Construction should improve town planning, instead of restraining the amount of houses, said property experts and residents dissatisfied with apartment building.

“There should be various types of residential properties in a city. The government should encourage apartment building builders, as well as support property firms building houses for low income earners,” a property expert said.

In related news, public lands including dock warehouses and factories alongside Tau Hu and Doi channels in HCMC’s District 8 will be removed to make space for apartment buildings, according to the People’s Committee.

Around 16,000 slum housings of the district will be relocated to new apartment buildings in the period between 2011 and 2020, the committee said.

By Do Binh Minh – Translated by Vu Minh

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