That's why, in order to meet this demand, specific mechanisms need to be created to attract investors in the low-price housing sector.
Up to 30% of nearly 8 million people in Hanoi are immigrants. They live in small houses with an area of 3 square meters per person at most. The demand for apartments of low and medium-income residents in the city is large. Some say that there should specific mechanisms to attract investors to this real estate sector.
Nguyen Chi Thanh, Vice Chairman, Vietnam Association of Realtors said: Only some investors who buy land in advance with reasonable prices can offer low-price properties. This will help meet a part of the demand. In order to solve the shortage, strategies need to be developed for low-price housing until 2030 in big cities
Le Khac Tiep, Vice Chairman, Board of Directors, Vingroup said: I think procedures should be more simplified so investors can implement their projects more easily and faster. In addition, the government should also pay attention to the transportation system in areas where low-price housing projects are carried out, because they are usually built in the outskirts.
“We are currently working on the mechanisms but there haven't been specific ones yet. However, we will have mechanisms to support people who have low income and are not subject to buy social houses”, Vu Van Phan, Vice Director, Housing & Real Estate Market Management Agency Ministry of Construction added.
After 8 years of implementing policies to develop social housing for poor people, only 28% of the demand for low-price property of low-income people in urban areas and workers in industrial zones has been met. This is partly due to the low profits of such projects and the fact that they attract just a few investors. Therefore, mechanisms are vital to develop the low-price real estate segment./.
