HCM City plans to build 900 social houses/year

The southern financial hub of HCM City plans to build 4,695 houses for officers and servicemen from now to 2015, the VnExpress reported on July 5.
In 2011 alone, the city expects to complete four social housing projects on total area of 1,746 hectares equaling to 69,300 square meters of floor area or 800 social houses.

By last year end, there were six social housing projects in such districts as 8, 10, Tan Binh, Thu Duc, Binh Tan with total 2,800 houses being constructed but not finished.

HCM City People’s Committee will buy back social houses with the price frame of construction cost (cost for ground clearance inclusive) based on audited figure plus bank loan rates and 10% as profit.

The city will raise land fund for the program through pricing land lots according to market prices and then hand over to bidding winners namely Saigon Construction Corp, Saigon Real Estate Corp. The committee also will impose 0% VAT on installation and construction bids of social housing projects, exempt CIT on investment in social housing construction in 4 years and 50% CIT for following 9 years.

HCM City has 17 social housing projects under pipeline, located in the districts of 4, 5, 6, 8, 9, 11, 12, Thu Duc, Tan Phu, Binh Tan and Binh Chanh. Total number is six thousand one hundred 50-smq houses.

The biggest difficulty for the programe, according to HCM City Construction Department, is the shortage of investment capital while enterprises are not interested in investing in the type of housing because capital withdrawal potential is not high. – Vietbiz24

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market