The Ministry of Construction has rejected a Ho Chi Minh City Real Estate Association proposal for housing developers to construct mini apartments that measure less than 25 square meters each.
The association has proposed the Ministry of Construction give the green light to developers to construction these mini apartment units for rent to replace many slums and cramped, dirty apartment buildings in Ho Chi Minh City that fail to meet both quality requirements and living conditions for tenants.
The Ministry gives the reasons of rejection
The association explains that the majority of low-income earners can afford to own these small units, which will result in a substantial improvement in their living environment and security issues. However, the ministry said the proposal was not in line with its Circular 20/2016 TT-BXD.
Specifically, the circular specifies households or individuals can develop rooms for rent with a minimum area of 10 square meters, as the majority of such individuals develop these housing units on their land that is usually not large. These regulations are aimed to encourage households or individuals to build homes for rent.
Meanwhile, the enterprises must cover at least 25 square meters to develop each budget housing apartment since they can secure vast areas of land to develop their projects. In addition to apartment units, they have to invest in technical and social infrastructure in order to guarantee residents’ quality of life, the ministry added.
Regarding a question by the Ho Chi Minh City Real Estate Association over funding for social housing projects to support the poor, the ministry said the Government has directed the Ministry of Finance to work with relevant ministries and agencies to map out a mechanism for partly covering interest rates for social housing apartments, which are budget homes for poor people.
Besides, the Ministry of Planning and Investment has been assigned to coordinate with the ministries of finance and construction to determine the amount of money needed.
The State Bank of Vietnam and the Vietnam Bank for Social Policy are responsible for devising interest rates. Then, the Prime Minister will have a final say on this.
Source: The Saigon Times