Hà Nội said it has prepared 28.5ha of land for developers to build 27 resettlement housing projects with an estimated 19,800 apartment units.

 

The capital city recently submitted a document to the Government Office to clarify its proposed mechanisms for firms to develop resettlement apartments in the capital city.

 

Under the proposals, Hà Nội will prepare land and select developers with adequate capacity to develop these resettlement housing projects. An important criterion for developers is that they must promise not to calculate loan costs in the apartment price.

 

The developers will be allowed to make a profit of 10 per cent or sell 20 per cent of the apartments to the market.

 

After nine to 12 months, if the city failed to introduce home buyers, the developers will be allowed to sell the apartments to recover their investment.

 

It was estimated that the city needed more than 22,130 apartments by 2020 to meet the resettlement demand for site clearance to implement infrastructure development projects,

 

Currently, some 4,500 resettlement apartments were being developed and the city needed another 17,600 units.

 

The capital city said the new mechanisms would encourage developers to invest in resettlement housing projects.

 

Under the current mechanisms, the Government will have to spend money to develop or buy housing projects for resettlement. After that, the resettlement housing projects will be sold to citizens. The capital city said this mechanism was not efficient due to the tight budget. — VNS