3000 residents in Ho Chi Minh City celebrate Tet in affordable homes

With the real estate prices in Vietnam relatively high for the average Vietnamese, owning a house or an apartment in big cities like HCMC or Hanoi can be stressful. Yet around 3000 households last year were able to celebrate Tet on their own property, thanks to affordable housing projects.

Meet Nguyễn Thị Thúy and her family in Ho Chi Minh City.

This year's Tết is different for her family, as they have just moved into their new house. Living on the income of office workers, Thúy and her husband did not think they could afford an apartment in a high-rise in Ho Chi Minh City. Yet the low-income housing policy has made their dream possible.

"If it had not been for government support, we could not buy a house, because the lending rate is very high. We are so happy to enjoy Tet in our own house for the first time." - Nguyen Thi Thuy, Duc Khai Condo, HCM City.

As per the policy, homebuyers enjoy a favourable price, with an interest rate of 3 per cent per annum, one third of the market lending rate.

"We will deposit 20 per cent of the housing price. Each month, we will pay about 260 USD for about 15 years. This is too good for a household like us." - Dang Cong Huan, Duc Khai Condo, HCM City.

In 2015, there are about 3000 families able to purchase apartments under social housing projects. It is expected that the number will go up in 2016, as the authority has resolved several bottlenecks in administering social housing.

"We will use 20 per cent of current commercial housing projects for lower income populations. The private sectors are encouraged to join us to make more housing available to people." - Tran Trong Tuan, Director, Department of Construction, HCM City.

According to the World Bank, affordable housing will be instrumental to help Vietnam achieve its goal of increasing productivity and inclusive urban growth.