(Dan Tri) - Chairman of Hoa Binh Group offers advice for localities to build 1 million social housing units in just one year.
In a press conference on December 17, Mr. Nguyen Huu Duong, Chairman of Hoa Binh Group (commonly known as Duong "Bia"), said that it is not difficult for construction companies like his to build social housing at reasonable costs.
According to his calculations, the price of social housing that this enterprise can offer to the market is 15 million VND/m2 for suburban areas and 20-21 million VND/m2 in Hanoi's inner city areas.
Construction materials and construction technology are increasingly improved, so construction prices are cheaper than before. Therefore, a price of 15-20 million VND/m2 is enough for a business to make a profit. This businessman even revealed that he had proposed to the General Secretary, Prime Minister and National Assembly to allow the business to build 1 million social housing units each year without the State having to pay.
The condition is that the People's Committees of provinces and cities plan land areas specifically for social housing. For example, Hanoi plans 5 areas for concentrated social housing and businesses will advance money for site clearance, infrastructure, and social housing construction.
After collecting tax money from home buyers and businesses supplying construction materials, the city can return the land clearance money to businesses according to regulations.
With the above method of calculating the plan of 10 million social housing units, the State budget will collect 33,100 billion VND without having to spend any money.
Mr. Nguyen Huu Duong (Photo: Manh Quan).
He said that at that time, building social housing was not difficult. The demand for products priced below 20 million VND/m2 was high, so the products were easily absorbed. When the market had social housing at suitable prices, the price of commercial housing would naturally decrease.
At the sharing session, Mr. Nguyen Huu Duong also announced that from now on he will no longer build commercial housing even though the company has "golden land" to develop this type of housing. He said he will only focus on building social housing to serve workers and the poor. In addition, implementing social housing projects also helps other small and medium-sized enterprises have jobs.
He also admitted that commercial housing is a game for big businesses, not for small businesses. However, this businessman believes that developing commercial housing needs to be calculated, to avoid falling into a situation like the Chinese real estate market when there are hundreds of millions of uninhabited houses and many ghost towns.
"Housing must be sold to people who need it and have enough income to buy it. Building houses to sell for several hundred million/m2, no one can buy them. Big companies building commercial housing must also reconsider," Mr. Nguyen Huu Duong expressed his opinion.
He also shared about the difficulties when wanting to build social housing in the inner city of Hanoi. This enterprise currently has 2 land plots in Hoang Mai district, Hanoi applying for social housing and has been approved by the city.
According to Decree 30 on social housing, it is required to issue an investment policy and appoint an investor within 20 working days after receiving the application. However, after 3 years, Hanoi City has not yet issued an investment policy for a project because this is a prime land. Hanoi City has requested that businesses develop commercial housing to collect budget revenue and avoid wasting prime land.
"In my opinion, the law on social housing is very clear, prioritized, and encouraged, but the People's Committees of provinces and cities are stuck with budget collection issues, so no provincial or city People's Committee supports businesses with prime land to build social housing," Mr. Duong shared.
Source: https://dantri.com.vn/bat-dong-san/dai-gia-duong-bia-he-lo-bi-kip-lam-nha-15-20-trieu-dongm2-o-ha-noi-20241217220754605.htm
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