In
Vietnam's urban areas there are many large, empty luxury homes, while
low-income earners are in need of accommodation.
This was one of the problems addressed at a
conference to seek the opinions of ministries and agencies concerning land use,
through the year 2015 and planning through 2020.
Dang Hung Vo, the former Deputy Minister of
Natural Resources and Environment, said many localities have allocated amounts
of land for urban development, including the massive construction of
residential areas, which exceed the permitted level, resulting in land waste.
Many of these residential areas have been left
empty for years after construction, including Quang Minh urban area, which is
the site of over 300 luxury houses in the Me Linh District of Hanoi.
The 40-ha area came online in 2006, but to
date, 90% of it remains unused.
Throughout the city, 35% of luxury homes have
remained vacant for several years, according to an inspection by the Ministry
of Construction’s Housing and Real Estate Market Management Department and the
Hanoi Department of Construction carried out in April.
The main reason for this problem has been
years of speculation in the Hanoi's real estate market, along with lack of
infrastructure, such as schools and hospitals to support such large residential
areas, said Vu Xuan Thien, Deputy Head of the Housing and Real Estate
Management Department.
Another problem has been the increase in
licensing of golf courses and large resorts. For many localities, the priority
has been to attract investment. Often, though, the priority of investors is to
sit on the property until they have a chance to sell it at a profit.
Le Quoc Nhung, Former Deputy Head of the
National Assembly Economic Committee suggested that more careful consideration
of projects be made before making land allocation decisions.
He also pointed out the modest amount of land
set aside for low-income housing.
In a recent interview with Tien Phong, Deputy
Minister of Construction Nguyen Tran Nam said, currently, of all the
residential space in Vietnam, apartment blocks, which tend to be more
affordable account for only 6%. Hanoi's rate is higher, at 16%, but Ho Chi Minh
City comes in at lower than 6%.
A large number of houses from 120 to 200
square metres have been built in big cities. These can be priced at anywhere
from VND40 million (USD1,923) to VND100 million (USD4,807) per square metre.
This places them far out of the reach of low to middle income people.
Nam added that, in its long-term
administrative plans, Vietnam plans to restrict the development of luxury and
semi-detached homes and increase the construction of apartment blocks to 80% of
new residential projects.
Source: Dtinews
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment