HCM-based real estate businesses show low interest in social housing

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HCM-based real estate businesses show low interest in social housing

Postby Amandabui252 » Tue Oct 25, 2016 3:34 am

HCM-based real estate businesses show a low interest rate in social housing, serviced apartment for rent in hcmc

The reason why businesses have less pulling power for social housing development is sold with limited land resource, excessive investment costs but lower profit and lack of successful supporting policies from area authorities.

Le Hoang Chau - Chairman of the Ho Chi Minh Real Estate Connection (HoREA) said the existing sociable housing projects mainly produced by 2009 to 2014, as soon as the real estate market was frozen as well as developers changed commercial houses projects to social ones.

The truth that most social housing tasks, serviced apartment in HCMC have had awful prestige

helps make property companies not want to build up this type or kind of houses.

Recently, structure of these projects has been started out. In May 2016, HCM government approved 2 brand new social projects including: house project CC1, developed by Building No . 1 Co. Ltd on Nguyen Van Ordure Street (Go Vap District) and a residential-commercial complex, developed by Phuc Phuc Yen Investment decision Co., Ltd in Tan Thoi Nhat Ward (District 12).

According to Nguyen Nam Hien - General Representative of Hung Thinh Real estate investment Company, the nice reasons why businesses have fewer interest in social housing advancement includes limited land source, high expense costs but low income and lack of effective aiding policies from city specialists.

A representative of Himlam Property, which is the developer involving affordable housing project with Phu Dong, said, although the price of apartment in the project is only VND1 billion per unit, it is still a commercial housing task, not a public one.

He said: "We lower price of our apartment project just because its location will be far away from the city center. However , it’s still purchased as a commercial housing venture. Developing a social housing task may harm our highly regarded brand. "

The fact that the majority of social housing projects within HCMC have had bad stature makes property companies not need to develop this kind of housing.

In addition to, as a result of different opinions among firms and ministries, the implementation regarding governmental policies for social housing under the 2014 Houses Law are being obstructed. As per Le Hoang Chau, this can be another reason why real estate businesses have shown low interest in sociable housing.
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