VietNamNet Bridge – General Secretary of Viet Nam Real Estate Association Nguyen Van Minh spoke with Hai quan (Customs) Newspaper about rental housing as labourers experience a shortage despite unsold apartments being available.

People, including newly-married couples and new employees, usually look for rental housing because they can't afford to buy a house. What do you think about rental housing segmentation for this group?

Until now, we have paid more attention to the privatisation of State-owned houses with the policy of selling the houses to their tenants, than to those who have real demand for housing. Real estate prices are currently too high for people with average incomes to afford to buy a house. So, it is understandable that they have to look for rental accommodation to reduce their housing expenditure.

In my opinion, demand for rental housing is outstripping supply. In the coming time, it will be reasonable to follow market trends if we have policies to promote this market segmentation.

What is your opinion about using 20 per cent of the area of projects that are over 10 hectares for low-income rental housing?

Since 2002, every project in Ha Noi is regulated to put aside 20 per cent of its land so that the State can allocate the land fund to targeted groups in accordance with the city's planning.

In other localities, the percentage for rental housing or for resettlement areas depends on their development master plan and real demand. Local authorities will set up the land funds on their own. I think that it's good to take part of the land fund to build accommodation for rent.

How has the association called on enterprises to engage in projects to build low-cost rental accommodation?

Since 2008, the Viet Nam Real Estate Association recommended the Government draft policies on rental housing issues including solutions and investment programmes. In addition, the association has encouraged enterprises to join such programmes. However, the policy to tighten credit for real estate investment has partially held back the real estate market's development, especially in terms of social housing. Trillions of Vietnamese dong for the programmes is still in banks and has yet to be disbursed.

VietNamNet/Viet Nam News