No loan has been funded under the VND120 trillion credit package for the social housing development program launched one month ago, according to the State Bank of Vietnam (SBV).

At shareholders’ meetings held recently, real estate developers affirmed their priority to develop social housing and affordable residential housing, with a plan to build thousands of apartments in 2023.

Under a new initiative approved by Deputy Prime Minister Tran Hong Ha, at least one million homes will be built for low-income and industrial park workers by 2030.

Though things are ready for the rollout of a soft loan package worth VND120 trillion, disbursement has been far slower than expected as there are almost no takers, said banks.

Van Hung, 40, a security guard living in Hanoi, has not been able to buy a social housing apartment despite three months of trying.

By 2030, the total number of completed dwellings in localities will reach about 1,062,200. Of these, about 428,000 will be completed by 2025 and 634,200 by 2030.

Developers of social housing projects buyers of this kind of houses are entitled to benefit from a credit package worth 120 trillion VND (5.1 billion USD) which was started by the State Bank of Vietnam (SBV) earlier this month.

The Prime Minister has approved a plan to build more than a million apartments for low income earners in urban areas and workers in industrial parks nationwide for 2021-2030.

The government has done what it can do to help warm up the real estate market. However, realtors have to also take action by slashing selling prices and accepting lower profits, analysts say.

Realtors who specialize in high-end real estate projects should think of adding social housing projects to their business strategies, because the projects ensure sustainability and stability for them.

The lack of affordable social housing has raised whether foreign developers should be allowed to invest in this segment in Vietnam.

The Government has decided to implement a low-interest credit package of about VND120 trillion for social housing development.

In the first two months of the year, 1,895 real estate units left the market, according to the General Statistics Office (GSO).

Sellers cannot sell products and take back their investment capital; many people can't buy because of limited financial capability; and the state has failed to collect tax and land-use fees. Such is the current state of the property market.

The Ministry of Construction has backed off from the VND110-trillion credit package for banks to lend on to developers and buyers of social housing.

A shortage of affordable housing products, a high number of outstanding loans, and many bankrupt real estate firms are some of the problems mentioned at the recent national conference on the Vietnamese real estate market.

Capital city Hanoi is projected to spend US$18.35 billion from now until 2025 on housing infrastructure, according to a development plan recently approved by the city’s People Committee.

The Ministry of Construction has proposed the prime minister lower the target of building social homes for workers and low-income people to just over one million in 2021-2030.

With an average monthly income of VND7.5 million, Vietnamese need to save money for 50 years to be able to buy an apartment with two bedrooms.

While many experts have called for action to rescue the real estate market, others believe that it is necessary to be cautious when pumping more money into the market.