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Sunday, January 23, 2022

HoREA offers suggestions to develop low-cost commercial housing projects

By Viet Dung

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HCMC – The HCMC Real Estate Association (HoREA) has written to the Ministry of Construction proposing adding seven mechanisms and support policies to make it easier to develop low-cost commercial housing projects.

Preferential levels from the seven mechanisms and policies are equivalent to 25%-50% of those applied to social housing projects.

Accordingly, HoREA proposed a 50% cut in land use and rental fees for commercial housing projects, while social housing projects are entitled to an exemption of fees.

In addition, the association also proposed lowering value-added and corporate income taxes by 25%.

Besides, the association proposed offering loans with preferential interest rates of 7.2%-7.5% per year for a 10–15-year tenor to buyers of commercial homes.

The following proposal allows buyers of commercial homes to sell or transfer their houses without repaying land use fees previously supported after five years of buying these houses.

Also, investors should be prioritized to access land for investment in low-cost commercial homes, according to HoREA.

Furthermore, the association proposed simplifying procedures for the investment in and development of low-cost commercial housing projects.

It is necessary to develop a mechanism to control the number of beneficiaries, meaning that one person is entitled to the preferential policies for social or low-cost commercial houses once.

If these proposals are approved, each square meter of a commercial house will be priced at no higher than VND25 million depending on location, according to HoREA.

The demand for buying or renting social or low-cost commercial houses is high as some 1.9 million people in the city live in boarding houses.

Among over 280,000 workers at 17 export processing and industrial parks, a mere 16% are living housing areas for staff, while up to 60% are boarding houses on rent.

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