At the October 24 meeting of the Central Steering Committee on housing policy and real estate market, the Ministry of Construction's report said that localities have planned 9,757 hectares of land for social housing, with 622 projects being implemented with a scale of 565,177 units.

Of which, nationwide, 79 projects have been completed with a scale of 40,679 apartments; construction has begun on 131 projects with a scale of 111,687 apartments; investment policies have been approved for 412 projects with a scale of 411,076 apartments.

Social housing is the "savior" for low-income people. Photo: Thanh Vu

However, only 83 projects in 63 provinces and cities are eligible for preferential loans from the VND120,000 billion credit package. Of these, 15 projects have been committed to a credit of VND4,200 billion, 57 projects have investors who do not need loans, 6 projects are under appraisal, and 5 projects do not meet loan conditions.

Homebuyers at 32/83 social housing projects have been able to borrow capital under the entire VND120,000 billion program with a total outstanding debt of VND2,099 billion for 5,236 customers. Of which, the outstanding debt mainly arose at the Social Policy Bank with VND2,019 billion, due to more preferential lending interest rates.

According to the Ministry of Construction, the mechanisms, policies and preferential credit sources for investors in social housing projects are still not attractive enough. The source of investment capital for construction from the budget is still limited. The procedures for purchasing, leasing and renting social housing are still complicated, especially the confirmation of documents proving housing conditions, income and residence.

The achievements in social housing development are even more significant as the price level of commercial real estate continues to rise. During the meeting, the Ministry of Construction said that in the first months of 2024, the market supply, although showing positive changes, is still quite limited.

“The structure of housing products is mostly concentrated in the middle and high-end housing segments. Housing for low-income people is still lacking, and the structure of affordable real estate products is gradually decreasing,” the Ministry’s report said.

In the third quarter of 2024, real estate prices in some localities continued to increase, especially in Hanoi, Ho Chi Minh City and major cities. In addition, the Ministry said that the auctioned land market in some localities is continuously setting records, with winning prices many times higher than the starting price. Many subjects also abandoned their deposits after winning the auction, with the aim of establishing a virtual price level in the area.