A good start for low-cost housing program

VietNamNet Bridge – After introducing two five-storey apartment buildings priced at VND195 million per unit in Thuy Xuan Tien Commune in Hanoi’s Chuong My District, Vinaconex Xuan Mai Concrete and Construction Joint Stock Co. plans to develop another project offering 40,000 square meters of low-cost apartments late this year.

Surprisingly, the two buildings look like high-class commercial complexes with kindergartens, high-schools, entertainment zones and shopping centers. Each condo is well-designed with two bedrooms, a living room, a bathroom and a common space.

Very low prices

A view of the Vinh Yen condo building in Vinh Phuc Province.

To everybody’s great surprise, Vinaconex Xuan Mai, a subsidiary of Vietnam Construction Import-Export Joint Stock Co., has offered the two buildings in Chuong My District at VND4-5 million per square meter and estimated to price the new building at just VND3 million per square meter. Located in Lien Bao ward in Vinh Phuc Province, the Vinh Yen building will comprise 536 flats at VND4.5 million per square meter on the first floor, VND3 million on the second or third and around VND2.7 million above that.

Home buyers will have to pay 40% down. “We provide a quality guarantee despite the low prices,” Vinaconex Xuan Mai’s chairman and general director Dang Hoang Huy stresses, given that the low prices may raise quality concerns.

Thanks to technology and advanced building materials, the entire five-story, 30 unit building went up in just three months at reduced cost and labor, Huy explained.

“If we can enjoy value added tax exemptions we will reduce prices to VND2.2-2.3 million per square meter,” Huy adds.

These projects were denied bank loans as they were considered infeasible. “If we get more financial support in interest rates or land use fees, we can build thousands of low-priced houses in any locality nationwide,” Huy says.

A praiseworthy model

Vinaconex Xuan Mai is sacrificing some of its potential profits to create jobs and share the low income housing burden. “This is long-term development strategy of our company,” Huy says. The enterprise is developing a condo project next to the Xuan Mai apartment building which is expected to be complete in mid-October. Condos measure 60-65 square meters and are VND5.9 million per square meter. “The project is designed for all home buyers and we will help customers access 15 year loans for 70% of the value of the house,” Huy says.

He also suggests the Government help enterprises join the policy housing program and the removal of restrictions that limit the height of the buildings to below six stories and 60 square meters per flat. “House prices vary from one place to another and the regulation will trouble enterprises,” he explains.

Deputy Minister of Construction Nguyen Tran Nam in a recent press briefing has encouraged enterprises to adopt low-priced housing projects of Vinaconex Xuan Mai. “Many low-income residents can buy houses at VND195 million each,” Nam says.

The Construction Ministry will submit its social housing plan to the Government this week. The project is invested with nearly VND1.5 trillion to supply around 330,000 square meters of low income housing by next year. Each house is 50 square meters and between VND165-200 million.

VietNamNet/SGT