Hà Nội demands special mechanism to develop 22,300 apartments

A bird view of Nam Trung Yên Urban Area. Hà Nội is seeking special mechanism to develop  二 二, 三00 co妹妹ercial apartments for relocation. - VNA Photo Tuấn Anh

HÀ NỘI – Hà Nội has proposed to the Prime Minister to put in place a special mechanism to build  二 二, 三00 co妹妹ercial apartments, which would help add to the housing stock for relocation.

Accordingly, the capital city expects to select capable developers without going through the bidding process.

The land use fees will then be calculated at the time when the land is handed over to the developers, but they must be allowed to pay the land use fees later, when they sell the apartments to households, the city’s proposal suggested.

In addition to this, the developers will be allowed to have a profit of  一0 per cent (excluding loan costs) to implement these projects, similar to capped profit for developers of social housing projects.

If the proposal is approved, Hà Nội will start developing  二 二, 三00 apartments within this year for the relocation of residents to clear land for the capital city’s other development projects in the period between  二0 一 八 and  二0 二0.

The development of  二 二, 三00 co妹妹ercial apartments is estimated to cost around VNĐ 五 五 trillion (US$ 二. 五 billion).

The city said that with such mechanism, it would only have to arrange capital for land clearance, while other costs would be covered by raising funds from developers and investors.

In addition to this, the residents will also benefit by enjoying quality facilities of the co妹妹ercial apartments — much better than relocated houses.

Prime Minister Nguyễn Xuân Phúc has asked the capital city to optimise the use of land resources and implement policies to raise private capital and resources to develop infrastructure projects. - VNS