Malaysian developers share experience on social housing - Economy

Updated

October, 31 2012 09:31:55

Malaysian developers share experience on social housing

HA NOI (VNS)— Malaysian property developers shared their experience in social housing construction and development with the Ministry of Construction yesterday in Ha Noi.

The Malaysian construction delegation was led by former prime minister Abdullah Ahmad Badawi in a brief meeting with the Ministry of Construction.

At the meeting, Viet Nam Deputy Minister of Construction Nguyen Tran Nam presented an overview of the social housing construction and development in Viet Nam and blamed the disorganised planning to limited resources and inconsistent investment. By late 2011, the Government issued a national strategy on housing development with a vision to 2030, with the goal of housing for everyone.

Nam said the local real estate market was still unhealthy. Property developers focused on commercial and high-end housing which most people couldn't afford.

In recent years, the Government launched many housing programmes to help low-income earners in rural areas. The Ministry of Construction focused on housing programmes for students, workers and low-income earners in urban areas.

By 2015, at least 250,000 homes would be needed in Ha Noi and HCM City. To date about 40,000 have been built. Currently, Viet Nam has opened its door for foreign companies to join in the domestic construction market and called for other resources as well.

The delegation shared their experiences on social housing construction for low-income people in Malaysia. They also made suggestion on a number of issues relating to urban development planning to develop convenient transportation systems by connecting core urban areas with satellite cities to ensure sustainable development.

The Malaysians said developing social housing projects needed consistent co-ordination from the government, banks, investors and buyers. Land funds set aside for low-income people must be used for the right purposes and property developers were not allowed to speculate low-income housing developments. The price for social housing cost was half the market price.

The Malaysian Government assisted property developers in law and land only, not in money. Property investors may suffer losses in the early stages but they would collect their investment capital from the buyer's monthly payments. The Malaysian Government had also asked the Central Bank to support preferential interest rates for buyers.

Nam said he welcomed the Malaysian Premier Asia Capital company to join in developing housing projects in Viet Nam and that the Ministry of Construction was committed to supporting the company in term of policy and relations with local authorities. He said the ministry also wished to have access to information on the social housing legal framework in Malaysia. — VNS

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