Government-initiated solutions to defuse the frozen real estate market aim to support “the poor”, affirmed Minister, Chairman of the Office of Government Vu Duc Dam at a press conference on Tuesday.
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He asserted that the Government always prioritizes resources to help vulnerable groups and have spared no effort to boost rural development and poverty reduction.
The solutions to warm up the real estate market are expected to provide the poor a chance to afford cheap houses, he added.
Under the Resolution 02, the Government planned to spend VND20-40 trillion through refinancing with reasonable interest rates and a maximum term of 10 years to support State-owned commercial banks in providing loans for low-income groups.
Meanwhile, commercial banks will allocate at least 3% of their total outstanding capital for low-income people, public employees, servicemen to lease or buy houses.
The Government is now encouraging the conversion of commercial housing projects into social housing ones in a bid to balance the demand and supply in the face of high inventories.
It will also review all housing projects to decide which ones will be continued or terminated and amend the Housing Law towards expanding range of buyers.
Other solutions include the establishment of funds on housing and real estate investment, of channels for medium- and long-term capital mobilization for the market.
Official statistics show that the volume of unsold apartments is huge, with 14,490 apartments worth VND 24,500 billion in Ho Chi Minh City. Meanwhile Ha Noi has inventory of nearly 5,800 apartments and 3,483 semi-detached houses.
Housing prices are extremely higher than the average income levels of the majority of people. Speculation and high interest rates have also made the problems worse./.
Source : VGP