HCM CITY – Residents living along canals in HCM City’s District 4 cannot afford to buy “relocation” apartments since their prices exceed the compensation they will receive, according to reports.

The issue was raised at a city People’s Committee meeting to assess urban renovation and development plans for 2016-20, Thanh Niên (Young people) newspaper said.

Trần Hoàng Quân, chairman of the District 4 People’s Committee, said there were around 1,700 households along the Đôi Canal.

Though apartments were being built to safeguard their right to have a place to live after the government acquires their lands for other works, the relocated residents themselves were not keen on the apartments because of their high prices, he said.

“A 30sq.m apartment will cost VNĐ700 million (US$30,765) while around 50 per cent of households will be paid less than VNĐ500 million ($22,000).”

Overall in the city there are 13,851 houses along canals, and 61 projects are planned in their locations.

The projects are divided into three groups.

The first includes 52 state-funded projects for which 13,827 households will be moved out and paid total compensation of more than VNĐ21.5 trillion.

The second group includes six public-private-partnership projects and 6,223 households will be relocated and paid VNĐ19 trillion.

The last includes three housing projects for which 1,801 households will be relocated and paid VNĐ2.7 trillion.

The city planning and architecture department admitted that the relocation of families living along canals was a difficult task for the city.

It said it would work with authorities in districts where people live along canals and rundown residential buildings to find out what the challenges are in relocation.

Nguyễn Thành Phong, chairman of the city People’s Committee, said local administrations should find ways to improve people’s living conditions and relocate them.

Some districts reported that some households along the canals were not legally eligible for compensation, but Phong exhorted them be “flexible” and resettle them properly. — VNS