VNRE - Deputy Minister of Construction Nguyen Tran Nam announced that the Prime Minister has approved a relief fund for low-income families to buy homes.
Under the plan, families would contribute 1% of their income in order to be provided with loans to buy houses.
Those who do not end up buying houses will be returned the principal along with interest (3-5% per year) upon retirement.
The fund, which will operate as a non-profit credit institution, will provide home buyers with loans, and also support developers who build affordable housing.
The Ministry of Construction estimates that Vietnam will need 2.5 billion square metres of houses in order to meet the demand of the rising population, estimated to be at 96 million by 2020.
Currently, there are only around 1.4 billion square metres, which means that the country needs to develop more than 100 million square metres every year.
Many affordable housing projects have been delayed due to a lack of capital. The Government is also considering the establishment a Real Estate Investment Trust (REIT) to create more opportunities for home buyers.
Statistics from the Ministry of Construction also show that about 7 million people living in urban areas nationwide now are in need of low-income housing, totaling an area of about 150 million square metres, The total investment would require between VND 300,000 and 400,000 billion (USD 14.5 - 19.4 billion).
Reported by Lan Huong | Dan Tri
Under the plan, families would contribute 1% of their income in order to be provided with loans to buy houses.
Those who do not end up buying houses will be returned the principal along with interest (3-5% per year) upon retirement.
The fund, which will operate as a non-profit credit institution, will provide home buyers with loans, and also support developers who build affordable housing.
The Ministry of Construction estimates that Vietnam will need 2.5 billion square metres of houses in order to meet the demand of the rising population, estimated to be at 96 million by 2020.
Currently, there are only around 1.4 billion square metres, which means that the country needs to develop more than 100 million square metres every year.
Many affordable housing projects have been delayed due to a lack of capital. The Government is also considering the establishment a Real Estate Investment Trust (REIT) to create more opportunities for home buyers.
Statistics from the Ministry of Construction also show that about 7 million people living in urban areas nationwide now are in need of low-income housing, totaling an area of about 150 million square metres, The total investment would require between VND 300,000 and 400,000 billion (USD 14.5 - 19.4 billion).
Reported by Lan Huong | Dan Tri
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