Stricter enforcement on shady deals on low-income housing

Hanoi authorities begin stronger enforcement on illegally-traded houses for low-income earners and strictly deal with the violators.

An apartment project for low-income earners in Hanoi

This action has been prompted by information posted on websites concerning the selling of low-income apartments in Building CT1, in Ha Dong District.

Two different prices have been asked for the same square footage apartment – 61.4-square metres. One price, sent through the same mobile phone, was VND1.3 billion (USD62,200) and the other VND1.28 billion (USD61,244). The proper price should be VND600 million (USD28,708).

As we contacted the number posted on those websites, the person said that he was just helping his friend to sell the apartment and that it would not be possible to have a notarised sales contract, only a handwritten one. The buyer would be allowed to keep VND50 million (USD2,392)-VND60 million (USD2,870) until the transaction is finalised.

Prices for apartments in this building often range from VND20 million (USD956.9) to VND23 million (USD1,100) per square metre. This is around two and a half times higher than the price fixed by the project investor.

On the other hand, these prices might be considered somewhat reasonable in Hanoi’s current real estate market. For this reason, the apartments continue to be sold at inflated rates.

According to the regulations of the Hanoi People’s Committee, low-income houses are only allowed to be transferred to another buyer after 10-year use period. In cases the buyer has lived in the space for less than 10 years, despite having paid in full to the investor, he can only sell the house back to the investor, or to an agency, who will again transfer it to another low-income family.

Dang Hoang Huy, General Director of General Director of Vinaconex, the investor of the CT1 Building project, said that other types of sales, such as the one mentioned above, is illegal.

He highlighted that from now on houses will only be transferred to buyers whose names are written in the contracts.

Vinaconex Xuan Mai will join hands with local authorities to supervise the use of the houses by checking the registration of residents. – Dtinews

Tags: Vietnam Low-income housing, vietnam real estate market