ID :
29905
Thu, 11/13/2008 - 09:14
Auther :
Shortlink :
http://m.oananews.org//node/29905
The shortlink copeid
Construction sector urges gov't to fund low-income housing
Hanoi (VNA) - Construction and real estate experts have recommended the Government provide more flexible policies to encourage more investment in low- and-mid-range housing.
Experts said now was a golden opportunity for the Government to encourage
construction, as the supply of construction materials has been exceeding the
building demand. Falling demand has led to low material prices, especially
for steel.
A tone of steel currently sells for roughly 14 million VND, down from 19
million a few months ago.
The General Director of the Hoa Binh Construction and Property Trading Joint
Stock Company, Le Viet Hai, believes that at this time, when high-end
apartment projects are not selling well, real estate investors will happily
invest in housing for low income earners if incentives and capital were
available.
Hai estimated that construction prices for low-and-mid-range housing would
fall roughly 20-30 percent if the Government issued an incentive policy.
A low cost 30 sq.m apartment in HCM City costs around 20,000 USD at
present. The price could be even lower if the Government provided real
estate investors incentive policies, including tax incentives, said Hai.
The Chairman of Indonesian FIABCI (International Real Estate Federation),
Ir.F.Teguh Satria, also recommended the Government consider implementing a
low income housing policy like that of Indonesia .
Government incentives had helped Indonesian investors provide over 100,000
low-end homes over the past two years, he said. Satria said that apartments
in a six-storey building without an elevator offered 21-36sq.m apartments at
a cost of around 15,000 USD each. The price of land in HCM City was
similar to that in Indonesia , he said, at around 1,000 USD per sq.m.
The Indonesian Government applies incentive policies, such as exemption of
value added tax, and a reduced construction tax rate of 1 percent, from the
standard 5 percent, according to Satria.
The HCM City Real Estate Association has also recommended the Government
revise the Housing Law to help investors take part in low income housing
projects.
Current regulations state that apartments of less than 30sq.m are illegal.
Real estate experts believe that besides helping low income earners to buy
homes, the move, if approved, would also remove difficulties for the
construction materials industry, which is facing a downturn in the wake of
the global financial crisis.-Endtiem
Experts said now was a golden opportunity for the Government to encourage
construction, as the supply of construction materials has been exceeding the
building demand. Falling demand has led to low material prices, especially
for steel.
A tone of steel currently sells for roughly 14 million VND, down from 19
million a few months ago.
The General Director of the Hoa Binh Construction and Property Trading Joint
Stock Company, Le Viet Hai, believes that at this time, when high-end
apartment projects are not selling well, real estate investors will happily
invest in housing for low income earners if incentives and capital were
available.
Hai estimated that construction prices for low-and-mid-range housing would
fall roughly 20-30 percent if the Government issued an incentive policy.
A low cost 30 sq.m apartment in HCM City costs around 20,000 USD at
present. The price could be even lower if the Government provided real
estate investors incentive policies, including tax incentives, said Hai.
The Chairman of Indonesian FIABCI (International Real Estate Federation),
Ir.F.Teguh Satria, also recommended the Government consider implementing a
low income housing policy like that of Indonesia .
Government incentives had helped Indonesian investors provide over 100,000
low-end homes over the past two years, he said. Satria said that apartments
in a six-storey building without an elevator offered 21-36sq.m apartments at
a cost of around 15,000 USD each. The price of land in HCM City was
similar to that in Indonesia , he said, at around 1,000 USD per sq.m.
The Indonesian Government applies incentive policies, such as exemption of
value added tax, and a reduced construction tax rate of 1 percent, from the
standard 5 percent, according to Satria.
The HCM City Real Estate Association has also recommended the Government
revise the Housing Law to help investors take part in low income housing
projects.
Current regulations state that apartments of less than 30sq.m are illegal.
Real estate experts believe that besides helping low income earners to buy
homes, the move, if approved, would also remove difficulties for the
construction materials industry, which is facing a downturn in the wake of
the global financial crisis.-Endtiem
