Ho Chi Minh City—The Ho Chi Minh People's Committee has approved a plan to buy up unsold residential buildings from real estate companies for its resettlement housing fund, said Le Hoang Chau, chairman of Ho Chi Minh City Real Estate Association (HoREA) yesterday.
Chau said this could be a productive way to help warm up the frozen real estate market, especially the residential building sector.
However, many experts still predicted a gloomy future for real estate market this year at a meeting between HoREA and land development and real estate agencies yesterday. Proposed solutions included lowering interest rates and developing financial tools through the Property Investment or Housing Funds to inject capital into the property market.
Viet Nam's monetary policy this year would continue to exclude non-production business activities, like real estate, from its list of priorities, Vice State Governor Nguyen Dong Tien affirmed on Wednesday. Dong added that there would be some adjustment for property loan policy, promising that the State Bank of Viet Nam would provide credit loans in 2012 to real estate projects with the potential to contribute to economic growth on a macro level.
Nguyen Manh Ha, director of the Ministry of Construction's Housing and Real Estate Market Department, told a steering committee yesterday that the ministry had proposed two economical housing models for Viet Nam, which would be long term financial mobilization channels for housing development in the country.
Viet Nam's residential property market is experiencing heavy losses at the moment.
Last year, the Prime Minister approved the establishment of a housing savings fund as a non-profit organization with voluntary contributions from its members' monthly incomes.
Labourers in need of low-cost housing would be able to freely participate in the fund while only contributing 1% of their monthly income. Once in place, the fund would prioritize lending to its members and construction firms that engage in social housing development programs.
If participants no longer want to own a house, they can withdraw from the fund and have their contributions returned with 3-5% interest per year.
Statistics from the Ministry of Construction also show that about 7 million people living in urban areas nationwide now are in need of low-income housing. --VNS