HCMC finds ways to reduce housing inventory

The Department of Construction in Ho Chi Minh City on March 14 reported to the People’s Committee on housing inventory and measures to deal with the present dire condition.

An apartment block project in HCMC (Photo: SGGP)

According to the Department, the City now has 1,321 housing projects with 572,420 apartments, of which only 131 projects have been built with 27,000 apartments. The value of unsold apartments is about VND24.5 trillion (US$1.171 billion).

Several investors have asked to transfer commercial projects into social housing, so as to enjoy preferential and assistance policies. The Construction Department has proposed to the City People’s Committee to permit them to do so if they meet certain requirements.

The price of an apartment of less than 70 square meters should not exceed VND12 million ($573) per square meter, including Value Added Tax. The State will not spend on unsold apartments but investors will trade directly with customers.

Civil servants and those in the military and police forces should be given loans at reasonable interest rates to buy apartments. This will not only allow them affordable housing but also help businesses sell their inventory.

Le Hoang Quan, chairman of the City People’s Committee, said that the City will not support all real estate projects but focus on specific projects.

By Luong Thien – Translated by Hai Mien

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