Ministry of Construction proposes new loan package for social housing, capital from government bonds

According to the Ministry of Construction, to implement the Government's project to build 1 million social housing units in the 2021-2030 period, about VND500,000 billion is needed.

Therefore, the Ministry is drafting a resolution on preferential credit capital of VND100,000 billion, equivalent to 20% of total capital demand, for the Social Policy Bank to lend to buy, hire-purchase, build, renovate, and repair social housing.

The social housing loan package proposed by the Ministry of Construction will be funded by government bonds. Photo: Trong Tin

The loan criteria and conditions of the package will be applied according to Decree 100/2024/ND-CP. Accordingly, people will be able to borrow up to 80% of the value of the contract to buy or lease-purchase social housing. In case of new construction or repair of houses, the maximum loan amount is 70% and not exceeding 1 billion VND.

The interest rate of the VND100,000 billion credit package will be equal to the lending rate for poor households as prescribed by the Prime Minister in each period (currently 6.6%/year). The maximum loan term is 25 years.

The disbursement period of the preferential credit package of VND100,000 billion will be extended until the credit package is fully disbursed. However, the deadline will not exceed December 31, 2030.

Regarding the implementation roadmap, it is expected that in the period 2025 - 2029, the package will disburse about 16,500 billion VND each year. In 2030 alone, the disbursement amount will increase to 17,500 billion VND.

To implement the preferential credit package of 100,000 billion VND, the Ministry of Construction proposed that the Government assign the Ministry of Finance to review and carefully and specifically evaluate the possibility of issuing government bonds to provide capital for the Social Policy Bank to lend for purchasing, leasing, constructing, renovating and repairing houses.

Vietnam real estate prices increase faster than the US, Australia, Japan

In a conference held on December 3, when sharing about macroeconomic factors, Dr. Can Van Luc, Chief Economist of BIDV, always expressed optimism about the positive prospects of the economy. However, when mentioning the story of real estate prices, that enthusiasm was no longer there.

“Housing prices are increasing so fast! From 2019 until now, prices have increased by 50-70%, mainly in the apartment segment. Part of the reason for the high prices is the lack of supply. I think the market is hiding some abnormalities. Real estate businesses need to consider and calculate the price of the product, so that it is reasonable and sustainable,” Dr. Can Van Luc raised the issue.

To reinforce the above statement, the expert said that by the end of September 2024, housing credit increased by only 4.6%, despite the continuous decrease in loan interest rates. This slow growth reflects the cautious psychology of home buyers, before the "price storm" period of the real estate market.

Real estate price growth and rental yields across countries.

According to Global Property Guide, Vietnam’s real estate prices are growing at the fastest rate in the world. With prices increasing by 59% after 5 years, the figure is even higher than the US (54%), Australia (49%), Japan (41%), Singapore (37%). In fact, Vietnam’s growth rate is 3-6 times higher than that of other Southeast Asian countries such as Indonesia (9%), Malaysia (11%), and Thailand (18%).

In addition to the data numbers, the most popular topics on the internet are also revolving around housing prices. Accordingly, the most searched keywords are “young people find it difficult to buy a house”, “real estate tax”, “high real estate prices” and “crazy real estate prices”.

Ho Chi Minh City removes obstacles for 5 more real estate projects, expected to collect over 18,000 billion VND

Recently, Chairman of Ho Chi Minh City People's Committee Phan Van Mai chaired a meeting of the Working Group to remove obstacles and difficulties for investment projects to consider removing obstacles for 5 real estate projects.

The projects that are being considered for resolution this time include: Lotte Eco Smart City complex project in functional area 2a in Thu Thiem New Urban Area of ​​Lotte Group; 14.8 ha land in An Phu ward, Thu Duc city, payment for BT contract of Long Thanh - Dau Giay Expressway Song Hanh project invested by Nguyen Phuong Company;

The Observation Tower Complex in the Functional Area in Thu Thiem New Urban Area is invested by Empire City Joint Venture Company Limited; the high-rise residential area in Phu My Ward, District 7 is invested by Hung Loc Phat Real Estate Investment Joint Stock Company; the I-Home commercial and apartment area at 359 Pham Van Chieu Street, Ward 14, Go Vap District.

Lotte Eco Smart City complex project of Lotte Group with expected land use fee collection according to valuation certificate is 16,000 billion VND.

Notably, of the 5 projects that have just been resolved, 2 projects are in the group of 22 projects with land valuation in the fourth quarter of 2024.

Specifically, the Lotte Eco Smart City Complex project of Lotte Group, with an estimated revenue according to the valuation certificate of 16,000 billion VND. This project was broken ground in September 2022 by Lotte Group (Korea) as the investor. However, due to financial obligations, it has remained dormant until now.

The second largest project is a 14.8-hectare land plot in An Phu Ward, Thu Duc City, to be paid for under the BT Contract for the Long Thanh – Dau Giay Expressway parallel road project of Nguyen Phuong Real Estate Joint Stock Company. The estimated revenue from this project is VND 3,500 billion according to the valuation certificate.

The City People's Committee said that the results of resolving the above 5 projects will help increase budget revenue by over 18,000 billion VND, support investors in completing legal procedures related to investment, construction licensing, financial obligations to implement construction and complete projects to develop urban areas according to planning, avoiding land waste.

At the same time, remove obstacles to resolve the granting of land use right certificates for 498 cases that have purchased apartments at the I-Home commercial and apartment project, ensuring the legitimate and legal rights and interests of the people.

Detain the person who offered land price of 30 billion VND/m2

On December 3, the Investigation Police Agency - Hanoi City Police temporarily detained and investigated the act of violating regulations on property auction activities against 5 subjects, including Pham Ngoc Tuan, Ngo Van Duong, Nguyen Duc Thanh, Nguyen The Trung, Nguyen The Quan.

According to the testimony, before the auction, the subjects determined the winning price to be only about 30 million VND/m2. To control the auction results, the subjects agreed on the price through 6 mandatory rounds.

Auctioned land in Dong Lai village, Quang Tien commune, Soc Son district. Photo: Phan Thien

Specifically, if in round 4, the price offered by investors is higher than 30 million VND/m2, then in round 5, they will offer a sudden high price to win overwhelmingly. Then in round 6, the group will agree to withdraw and not continue participating in the auction. The purpose is to prevent the land lot from being won.

With this trick, 36/58 plots of land were paid up to nearly 100 million VND/m2 by the above subjects in collusion. Some plots were even paid up to 30 billion VND/m2 by Pham Ngoc Tuan.

Faced with unusual signs of the auction, the Director of Hanoi City Police Department directed the Department of Investigation of Corruption, Economic Crimes, Smuggling, and Environmental Crimes to coordinate with relevant units to urgently investigate, verify, and clarify the acts of the subjects with signs of law violations.

At the same time, direct professional units to strengthen inspection, promptly detect, combat, prevent and strictly handle acts of taking advantage of legal policies to commit illegal activities in the field of property auctions in general and land use rights auctions in particular in the city.

Currently, the Investigation Police Agency - Hanoi City Police is consolidating documents and evidence to initiate a case, prosecute the accused, and strictly handle related subjects according to regulations.

On November 29, the Soc Son District Land Fund Development Center organized an auction of 58 plots of land in Dong Lai village, Quang Tien commune. The plots of land have an area of ​​90 - 224 m2 with a starting price of 2.4 million VND per m2, the deposit is 223 - 550 million VND/plot. According to the regulations, the auction is organized in the form of direct voting through at least 6 rounds.

Thanh Oai District stops auctioning nearly 200 land lots, returns deposits

Joint Auction Company No. 5 - National and Joint Auction Company Vietnam Auction have just announced the suspension of the 4th, 5th and 6th auctions in Man Ca, Man Cong, Ma Man Trong areas, Van Quan village, Do Dong commune, Thanh Oai district (Hanoi). The announcement is based on the official dispatch requesting the suspension of auctions for 197 land plots in the above area from the District People's Committee.

According to the plan, 3 sessions with a total of 39 plots of land are expected to be auctioned on December 7, December 14 and December 21. Of which, the 4th session has 19 plots of land with an area of ​​74-92m2, the 5th session has 24 plots of land with an area of ​​88-175m2, and the remaining 20 plots of the 6th session have an area of ​​96-149m2. These lots all have a starting price of 5.3 million VND/m2.

The announcement states that the auctions will be held after the decision of the competent authority. Customers who have purchased the participation documents and paid the deposit should contact the auction organizer for instructions on the procedure to receive the refund of the deposit.

Ninh Thuan temporarily suspends Hacomland's real estate trading floor

The Department of Construction of Ninh Thuan province has decided to temporarily suspend the operation of the Hacomland real estate trading floor of Hacomland Ninh Thuan Joint Stock Company. The suspension period is from December 3, 2024.

According to the Department of Construction, the reason for the suspension is that the real estate brokerage practice certificates of the real estate brokers have expired. It is known that this decision is based on the inspection results on November 28, 2024 of the Inspection Team of the Ministry of Construction (according to Decision No. 431/QD-BXD).

During the suspension period, the Department of Construction requires Hacomland real estate trading floor to be responsible for fully implementing the contents as prescribed in Point d, Article 17, Decree 96/2024/ND-CP, dated July 24, 2024 of the Government.

Specifically, according to the provisions of Decree 96, during the period of temporary suspension of operations, the real estate trading floor must pay all outstanding taxes, continue to pay other debts, complete the implementation of signed contracts with brokers and employees, unless otherwise agreed; for service contracts signed with customers but not yet completed, an agreement must be reached with the customer on the implementation of that service contract.

Hacomland Real Estate Trading Floor was established by Hacomland Ninh Thuan Joint Stock Company, headquartered at Lot TM09, Dang Quang Cam Street, Binh Son - Ninh Chu Urban Area (K2 Area), My Binh Ward, Phan Rang - Thap Cham City.

According to the posted information, Hacomland real estate trading floor is currently introducing projects in Ninh Thuan including apartments in the Northeast New Urban Area - Area K1 (at the Hacom Galacity Apartment Project which has been opened for sale, Hacom Mall Commercial Center is under construction); Northeast New Urban Area and Binh Son - Ninh Chu Coastal Urban Area (Area K2)...

Kon Tum terminates FLC's VND1,700 billion project

On December 4, Kon Tum Department of Planning and Investment announced that it has just issued a notice to terminate the operation of the Commercial Complex, Entertainment Services and Townhouses Project of FLC Group Joint Stock Company.

According to Kon Tum Department of Planning and Investment, this project was terminated because FLC Group Joint Stock Company decided to terminate the project of Commercial Complex, Entertainment Services and Townhouses according to Point a, Clause 1, Article 48 of the Investment Law.

Kon Tum Department of Planning and Investment also stated that FLC Group Joint Stock Company is responsible for completing the procedures for liquidating the investment project and fulfilling the investor's obligations in accordance with the law. Kon Tum revokes Official Letter No. 1952 and Official Letter No. 4165; these documents will cease to be effective at the time the notice takes effect.

The project of Commercial Complex, Entertainment Services and Townhouses has a total investment capital of more than 1,700 billion VND.

The project started in 2019 on Truong Chinh Street, Kon Tum City with a total investment of more than 1,700 billion VND, with a land use area of ​​about 18 hectares, with the goal of investing in the construction of a complex of trade, services, entertainment and townhouses with synchronous planning and high quality. However, after more than 3 years of implementation, dozens of villas have not been completed, and grass is growing wildly around the project.

In 2022, the Government Inspectorate concluded that many violations and shortcomings of the project existed. According to the Government Inspectorate, this project was assigned by Kon Tum province to FLC Group with an area of ​​nearly 18 hectares. However, the Provincial People's Committee assigned the Land Fund Development Center to sell assets on the land and transfer land use rights through auction, which is a violation.

At the time of inspection, FLC Group did not fulfill its financial obligations. In addition, the project was not completed, the Kon Tum Provincial Land Registration Office advised on granting certificates of land use rights, house ownership rights and other assets attached to the land; arbitrarily dividing the land area and granting separate certificates of land use rights, house ownership rights and other assets attached to the land to FLC Group for a long term, which is not in accordance with the provisions of the Land Law.

Quang Nam proposes spending 416 billion VND to support investment in social housing projects

Quang Nam province has just submitted to the Provincial People's Council for consideration and issuance of a Resolution regulating the support mechanism for implementing social housing construction investment projects in Quang Nam province until 2030.

According to the report of the People's Committee of Quang Nam province, the total estimated cost of implementing this Resolution is about 416 billion VND, from the land fund revenue of 20% of commercial housing projects and other legal capital sources.

Quang Nam province will have policies to support investment in social housing projects.

This policy will support 100% of the costs for compensation, support and resettlement according to the provisions of land law; creating clean land funds for investors to invest in building social housing.

Support 50% of investment costs for construction of technical infrastructure systems within the project scope, including projects with investment phases approved by competent authorities, but not exceeding 10 billion VND/project. Support 100% of fees and charges for investment procedures.

The subjects of application for this Resolution are investors in social housing construction projects invested with trade union financial resources.

Investors in social housing construction investment projects do not use capital sources specified in Clause 1, Article 85 of the Housing Law dated November 27, 2023.