Proposal to Expand Land for Affordable Housing: Careful Consideration Needed for Sustainable Development

Expanding land for the construction of affordable housing is an important measure to promote the development of the real estate market and address the current difficulties in homeownership, especially given the rising property prices. However, the implementation of this policy needs to be considered carefully to ensure its sustainability and alignment with the country’s development goals.

1. Current Situation and the Need to Expand Housing Land

According to the 2014 Housing Law, starting from July 1, 2015, developers can only implement commercial housing projects if they have the right to use residential land. This policy has limited the development of housing in areas where land for residential purposes is scarce, especially in new regions. The government has realized that the current policy is unable to meet the housing needs of the majority of people, especially as the market is dominated by high-end housing projects while affordable housing demand remains unmet.

Therefore, the government has proposed expanding the scope of land that can be converted into commercial housing land, including agricultural and non-agricultural land that is not residential. This aims to address the current shortage of land for housing projects. This move will not only help alleviate the pressure on citizens in acquiring homes but also promote the balanced development of the real estate market.

2. HoREA’s Proposal and Public Concerns

Le Hoang Chau, President of the Ho Chi Minh City Real Estate Association (HoREA), has proposed prioritizing developers who have financial capacity or land reserves for the development of affordable housing projects. He believes that this will help restructure the market and allocate more resources to projects that meet the actual needs of the people, especially low- and middle-income groups.

However, many National Assembly delegates expressed concerns during a recent discussion. They worry that expanding land conversion could lead to situations where completed housing projects remain unoccupied or fail to meet the real needs of the people. These delegates emphasized that social housing and affordable housing remain urgently needed in many regions, but developing these projects has encountered numerous difficulties.

3. Criteria and Oversight Mechanism for the Pilot Program

To avoid abuse during the land conversion process, the government and HoREA have proposed some key criteria. Specifically, pilot projects should be located in urban areas and should not involve land that is subject to expropriation. Additionally, according to the planning, the increase in residential land area should not exceed 30% during the planning period. This standard aims to prevent excessive land conversion and avoid the misuse of agricultural or cultivated land for residential development, thus ensuring national food security.

Furthermore, HoREA has also suggested that clear standards be established for investors proposing land conversion projects to ensure that they meet local needs and planning requirements. This mechanism will strengthen oversight, ensuring that the pilot program is not abused.

4. Challenges and Prospects

One of the biggest challenges in expanding land for affordable housing is the gap between land prices and housing prices, especially in areas with high land prices like the suburban districts of Hanoi. Recently, land auction prices in these areas have skyrocketed, significantly increasing the cost of building affordable housing projects.

However, if implemented successfully, this policy could help address the housing difficulties faced by citizens, reduce the pressure on housing prices, and provide more opportunities for low- and middle-income people to own homes. The key is for government agencies to establish effective regulatory mechanisms to ensure that affordable housing projects are properly implemented and not exploited by developers.

5. Conclusion

Expanding land for commercial affordable housing is a necessary measure to promote the sustainable development of the real estate market and address citizens' housing needs. However, in order to achieve this goal, the government and regulatory agencies need to establish clear oversight mechanisms to prevent policy abuse and ensure that affordable housing projects genuinely meet the needs of the public. Only in this way can the real estate market develop in a balanced manner, providing more affordable housing options for citizens.