Low income housing policy may soon change

The Ministry of Construction requested that the Hanoi People’s Committee make some changes in its low-income housing policy.

The move is aimed to expand groups which are eligible for buying low-income houses, and help deal with low sales in the real estate market.

According to the ministry, people with an average living space of 8-10 square metres should be eligible for buying low-income houses, instead of the current 5 square metres. In addition, the new policy would consider all residents of Hanoi, even temporary residents, eligible for buying such homes.

Under the current regulations, only people living within Hanoi’s inner districts are eligible.

Deputy Director of the Hanoi Department of Construction Nguyen Quoc Tuan said there is a large demand for low-income homes. The department and other local agencies have also proposed to the municipal People’s Committee a reduction in the transfer time for these homes from 10 to 5 years.

Other considerations

“Public opinion, however, differs on these changes, especially those concerning the time of transfer. Many believe that the policy should be considered more carefully before being adopted.”

According to the Ministry of Construction, the 10-year period is reasonable for low-income households, because it discourages illegal transfers, and people taking advantage of the system. Recently, the illegal transfer of an apartment of CT1 Ngo Thi Nham Building in Ha Dong District, Hanoi, caused public outrage. The owner, Cao Thi Loan, sold the apartment to another at the price of VND1.1 billion (USD53,398). Loan bought the house for just VND600 million (USD29,126).

There are many other similar examples that have been publicised. Often the price disparity is can be as much as VND20-23 million (USD961 – 1,100).

Tags: Vietnam Low income housing policy, Vietnam Property market, Vietnam property sector, vietnam real estate market