HCMC – Despite the Government’s financial packages, low-income buyers still have difficulty acquiring a social home in HCMC due to red tape.
According to the city’s Department of Construction, HCMC has many long-stalled social home projects for low-income people and workers, with administrative obstacles looming over the construction.
The Tanimex apartment, a 472-unit social housing project in Binh Tan District, has yet to kick off despite the capital and land handover being completed in 2010.
The investor has been unable to begin work on the project as the building’s land use purpose adjustments, which are required for the administrative management, have been delayed for years.
Some other apartment projects, part of a social housing push promoted by the local authorities between April 30 and September 2 last year, have seen no progress due to incomplete legislative requirements.
Meanwhile, real estate developers have dealt with material construction cost fluctuations.
The credit package of VND110,000 billion for the social housing projects, recently proposed by the Ministry of Construction, is expected to support businesses and fuel the industry. Still, challenges remain in terms of regulatory barriers to financial access.
According to Le Huu Nghia, vice chairman of the HCMC Real Estate Association, if administrative processes get streamlined, investors might get funds, houses could be constructed and buyers could acquire a home.