House for rent market need to be developed

Posted at: 28/02/2019
In reality, the demand for house renting is high while in big cities such as Hanoi, Ho Chi Minh city is quite high while the number of house for rent is limited, house for rent model is unfamiliar to normal citizen and investors. .

Provide abundant supply for social house for rent will meet the demand of  living area for people.

 

For years, house-for rent has been a hot issue in Vietnam. Many big cities such as Hanoi, Ho Chi Minh city… annually welcome ten thousands of immigrants to work and study. Most of them are low or average income people; can not afford to buy house and need to look for bedsits.

Housing for rent market has been left open

For years, house-for rent has been a hot issue in Vietnam. Many big cities such as Hanoi, Ho Chi Minh city… annually welcome ten thousands of immigrants to work and study. Most of them are low or average income people; can not afford to buy house and need to look for bedsits.

 Living in decent, affordable housing in a reasonable location is one of the most important goals for all Vietnamese people.

Many social house-for-rent projects have been developed by the State, but they are not enough to meet the increasing demands, particularly in big cities like Hanoi and Ho Chi Minh City,

In many recent years, normal citizen must rent from private bedsits  around the city, due to the fact that Hanoi hasn’t got supply of housing for rent under large and concentrated project.

According to experts, the housing for rent segment has not been paid attention and developed properly because, the aspects of the rental segment, there are still some barriers in investment process for this type of apartment. , because the large amount of capital mobilization, slow capital recovery time, difficult to manage tenants, etc, so there are very few investors who are interested in.

The representative of Viglacera Infrastructure Development and Investment Company said that their enterprises deployed houses for rent project mostly for community and society responsibility. In reality, it is the way of spending big amount of money and collecting small money afterward. Based on calculation, Enterprises should used 20% area for house for rent, which is account for 20% of total investment, in which return on revenue can not be over 10%. As the results, not many enterprises are interested in taking part in building houses for rent.

Confirming the situation of supplying of house for rent do not meet the demand of citizens, Expert Dang Hung Vo have noted that in developed countries, housing for rent is an inseparable part of the socio-economic development plans. Rented homes made up of 84% in Singapore and 40% in the Republic of Korea and Japan.

 However, the house-for-rent market has been left open in Vietnam although there is a great demand for rental houses. There are only a few of short term bed sits from individual, households and some enterprises. To coop with this situation, mechanism and policies needed for organizations and individual from different economic segments to invest on social houses for rent to meet the demand for affordable houses for rent.

Developing social rental housing projects is expected to changing Vietnamese habit of owning a house, experts said

Recently, Ministry of Construction also cooperate with Korea International Cooperation Agency (KOICA), Land and Housing Institute of Korea- LHI Consortium to build general policy for housing for rent in Vietnam in 2021-2030 period, based on international experience and current situation exploration of Vietnam to propose policies for housing for rent which is suitable with current situation and development trend of Vietnam in 2021-2030 period.

Deputy Minister of Construction Nguyen Van Sinh noted that: in the coming period, the project will assess the legal policy execution in developing social house in the past time. Based on this basis, finding the limitation and shortcomings, difficulties affecting the development of social house for rent in the past time. Besides, continuing to study and study international experiences; proposing policies the Government as well as consulting the Government to propose to the National Assembly to amend the current regulations, especially the Housing Law related to the development of social housing in general and social housing for rent in the near future ...

Experts said that it is necessary to build all kinds of houses for rent, especially social housing and comfortable houses with acceptable prices. Forming a rental market is also an extremely important measure to stabilize land prices, so there should be policies to encourage investment enterprises. From a market perspective, when low-cost rental housing can be developed, it will compete directly with the current bet sits and may be an alternative product for some low-cost commercial apartment ...

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