HoREA 'gives hint' to increase social housing supply

According to HoREA, the draft decree detailing a number of articles of the Housing Law on the development and management of social housing still has some inappropriate provisions. Therefore, the association has suggested adding a point regulating that social housing projects can adjust the land use coefficient or construction density to a maximum of 1.5 times.

Explaining this, HoREA said that Article 82 of the 2023 Housing Law stipulates the types of houses and area standards of social housing with similar content to Article 55 of the 2014 Housing Law and Point a, Clause 1, Article 7 of Decree 100/2015/ND-CP stipulating the types of houses and area standards of social housing.

HoREA proposed that social housing projects be adjusted to increase construction density or land use coefficient up to a maximum of 1.5 times. (Photo: SS)

Accordingly, the regulation that social housing projects are adjusted to increase the land use coefficient or construction density to a maximum of 1.5 times will have an impact on increasing land use efficiency. Because, with the same land area, social housing projects will create an apartment supply about 1.5 times higher than the apartment supply of commercial housing projects.

In addition, allowing social housing projects to adjust the land use coefficient or construction density up to a maximum of 1.5 times further proves the correctness of the impact on increasing land use efficiency in the case of "investors of commercial housing construction investment projects must reserve a part of the residential land area in the project that has invested in building technical infrastructure systems to build social housing" (stipulated in Clauses 2 and 3, Article 83 of the Housing Law 2023).

At the same time, the above amendment will increase the supply of social housing in the market and help reduce the cost of social housing, because the cost of compensation and site clearance to create land fund for project implementation is allocated less for each social housing apartment, because the number of social housing apartments of the project is more (increased by about 1.5 times).

Furthermore, it also “encourages” businesses to make “agreements on receiving land use rights or having land use rights” to use these land funds to participate in the goal of developing 1 million social housing units in the 2021-2030 period.

"If we do not allow "social housing projects to adjust the land use coefficient or construction density up to a maximum of 1.5 times", businesses will choose to use the land funds they have, in accordance with the planning, to carry out real estate and commercial housing projects for business instead of building social housing", HoREA analyzed.

HoREA assessed that the current real estate market is both lacking in housing supply and "out of phase" in the high-end housing segment, lacking affordable commercial housing and social housing, so the regulation that "social housing projects are allowed to adjust the land use coefficient or construction density up to a maximum of 1.5 times" will have a positive impact in contributing to adjusting the housing product structure and reducing housing prices in the real estate market.

Source: https://www.congluan.vn/horea-mach-nuoc-tang-nguon-cung-nha-o-xa-hoi-post302060.html