NEWS
Ministry to loosen requirements for buying low-income houses
19-10-2012
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The ministry plans to submit the draft decree to the Prime Minister for consideration by the end of this year.
According to Construction Deputy Minister Nguyen Tran Nam, the draft decree aims to simplify requirements for low-income people to buy houses. It is part of the ministry’s moves to warm up the frozen real estate market.
Under the draft decree, people are allowed to buy and sell low-priced houses within five years, down from the current regulated period of 10 years. A person who currently lives in eight square metres can buy this kind of house, instead of the current five square metres.
Those earning a monthly income of VND9 million (USD428.5) are permitted to buy low-priced houses, instead of the current VND4 million (USD190.4).
In reality, many apartments, which are not built for low-income earners, are being offered at prices equal to those for low-income group. For example, apartments in some projects in Hanoi were recently sold for VND10 million per square metre. The deputy minister said that once approved, the decree is expected to create competition in the sluggish real estate market.
Earlier, the Ministry of Construction asked the Bank for Investment and Development of Vietnam (BIDV) to appraise and provide capital for seven low-income housing projects in Hanoi, Vinh Phuc Province, Danang City and Hau Giang Province. Some of these projects have been delayed due to capital shortages.
