HCMCity (VNA) - Low-cost housing projects planned by the municipaladministration should have the same quality of construction and infrastructureas their commercial counterparts, Dinh La Thang, Secretary of the HCM CityParty Committee, has said.

Addressinga conference on February 27 to gather ideas on building economical housingprojects in the city, Thang said low-cost social housing did not mean new slumsin the city.

Thesocial housing areas should have healthcare services, markets and schools, hesaid.

Thangalso emphasised that low-cost housing need not mean building smaller houses.New materials and new technologies should be used to cut costs, he added.

Heaffirmed that the city will spare no effort in trying to meet all targets ondeveloping houses for workers and other low-income people. It will co-operatewith real estate firms and developers and provide them with favourableconditions to develop social housing, Thang said.

Referringto Binh Duong’s success in building very cheap social housing, Thang said HCMCity would study the neighbouring province’s determination and creativity, butapply it flexibly, based on the city’s own ground realities.

Hesuggested that greater co-operation between real estate developers and betweenthem and suppliers of building materials would help cut down constructioncosts.

Itwas revealed at the conference that the Cement Corporation has pledged to cutdown by 300,000 VND (14 USD) per tonne the price of cement used for low-cost socialhousing projects in the city.

Threedevelopers also volunteered to work on social housing projects on a non-profitbasis.

LeHoang Chau, Chairman of the HCM City Real Estate Development Association, saidthe city might be able to build 30sq.m-apartments for just 100 million-200million VND (3,900-8,700 USD), as Binh Duong had done. However, only aminuscule percentage of the population, about 10,000 people, would get them,which is not fair for so many people that need low-cost housing.

Developersat the conference agreed that it was not feasible to build apartments for 5million VND (220 USD) per square metre.

Therepresentative of one company said the best way would be to build 15-20sq.mapartments for long-term leases of up to 50 years.

“Thisis the best way to avoid slums,” he said, explaining that “when leasing, thequality of projects are still under the control of developer. People who do notobey regulations will be kicked out.”

Healso suggested that the city should only sell 30-35sq.m apartments in 12-15storied buildings.

TranTrong Tuan, Director of the HCM City Department of Construction, said the cityhad a high demand for 40-60sq.m apartments priced between 350 million VND (15,300USD) and 1 billion VND (43,800 USD).

Thedepartment would work together with companies to find ways to reduce housingprices. It would also co-operate with other sectors to improve administrationprocedures, Tuan said.

Areport released at the conference by HCM City Real Estate Association said thecity would develop 39 projects with 45,000 condos up to 2020.

About20 percent of this will be for lease, 60 percent will be paid for ininstallments and 20 percent will be sold outright.-VNA