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Tuesday, July 23, 2024

Bureaucratic hurdles continue to block housing projects

By N. Tan

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HCMC – Work on 18 social housing projects in HCMC is moving at a snail’s pace as paperwork roadblocks remain.

Of the total, eight have got off the ground this year. Among them are a dormitory in Thu Đuc City’s Linh Trung II Export Processing Zone that will house around 1,000 workers with 360 units and the MR1 project in District 7 that will provide over 700 homes to 1,400 low-income earners.

However, November saw no construction at the said projects. Meanwhile, other projects in Thu Duc City, such as Dragon E-Home and an affordable housing project in Long Truong Ward have yet to begin construction.

According to developers, the projects have been stalled by paperwork. Likewise, the 10 projects that have yet to commence construction are also awaiting the completion of paperwork.

Regulations for the construction of social homes are still incomplete, making it hard to complete procedures, which makes them less attractive than commercial housing projects, realty companies said.

Besides, the return to investment ratio remains low, with a profit margin of 10-15%, while developers have to leave at least 20% of social homes for rent for five years before selling them, lengthening the capital recovery period. 

They added that it would be hard to complete these projects without the Government’s help.

As for the slow progress, the Construction Department of HCMC attributed it to the slow compensation and site clearance.

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