What are the regulations on rents of social housing in Vietnam in 2023? How to calculate the rents of social housing?
What is social housing in Vietnam?
Pursuant to Clause 7, Article 3 of the Law on Housing 2014, social housing means any house provided for entities benefiting from the policies on housing support carried out by the State as prescribed in the Law on Housing 2014.
What are the regulations on rents of social housing in Vietnam in 2023?
Pursuant to Clause 3, Article 21 of Decree 100/2015/ND-CP stipulates as follows:
Selling prices, rents, and lease purchase prices of social housing
1. Selling prices of social housing are determined by the investor on the basis of recoupment of investment in construction of the houses, payment of loan interest (if any), and generation of a profit not exceeding 10% of total investment, exclusive of incentives provided by the State specified in Article 58 of the Law on Housing.
2. Lease purchase prices of social housing are determined by the investor on the basis of recoupment of investment in construction of the houses, payment of loan interest (if any), and generation of a profit not exceeding 15% of total investment, exclusive of incentives provided by the State specified in Article 58 of the Law on Housing.
The buyer/tenant shall pay 20% of the house value and the rest periodically as agreed between the seller/landlord and the buyer/tenant from the day on which the house is transferred; the minimum lease purchase period is 05 years from the day on which the seller/landlord transfers the house to the buyer/tenant.
3. The social housing rents are determined by the investor on the basis of recoupment of maintenance cost and investment in construction of the houses, payment of loan interest (if any), and generation of a profit not exceeding 15% of total investment, exclusive of incentives provided by the State specified in Article 58 of the Law on Housing.
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Accordingly, the social housing rents are determined by the investor on the basis of recoupment of maintenance cost and investment in construction of the houses, payment of loan interest (if any), and generation of a profit not exceeding 15% of total investment;
Note: the social housing rents are exclusive of incentives provided by the State specified in Article 58 of the Law on Housing; The minimum capital recovery period is 15 years from the date of signing the contract.
What are the regulations on rents of social housing in Vietnam in 2023? How to calculate the rents of social housing?
How to calculate the rents of social housing in Vietnam?
The lease price of social housing specified in Article 10 of Circular 09/2021/TT-BXD specifically:
Where:
- GiT (VND/m2/month) denotes the lease price per a usable square meter of an apartment (or housing unit) that is completely built at the location i within a month.
- Vd (VND/year) denotes total investment capital of social housing in the project which is distributed into the usable area of social housing for lease on a yearly basis according to the capital conservation principle, and is calculated according to the following formula:
+ Td (VND) denotes total investment capital (inclusive of construction and other reasonable costs) distributed into the area of social housing for lease and calculated in line with the date of submission of application for review; including:
* Construction costs comprising several or all of the costs constituting total construction cost, which is calculated according to laws on management of construction costs eligible for being distributed into the area of social housing for lease;
* Other reasonable costs, inclusive of selling and advertising costs (if any) and other costs necessary for execution of the project. Total of other reasonable costs not exceeding 2% of total cost of construction of the social housing for lease.
+ r (%/year) denotes the interest rate for investment capital conservation (calculated in year) subject to the decision of the person having competence in making investment decisions.
+ n denotes the number of years of capital recovery of the project defined by the competent decision maker, but not less than 15 years; with respect to social housing for lease, not less than 20 years.
- 12: denotes the number of lease months within a year.
- L (VND/year) denotes the norm-bound profit which is measured in year, equals 15% of total investment capital at maximum and is distributed into the area of social housing for lease.
- Bt (VND/year) denotes the average cost of project maintenance measured in year and distributed into the area of social housing for lease.
- Tdv (VND/year) denotes the proceeds from sale, lease or lease purchase of the area of the commercial housing area in the social housing project that is distributed into the social housing area for lease and is calculated in the same ways as prescribed in Article 9 herein;
- SiT (m2) denotes the usable area of an apartment (or housing unit) for lease at the location i.
- Ki denotes the coefficient used for adjusting the lease price of the area at location i provided that it ensures conformity to the principle, according to which the collected profit is not in excess of the norm-bound profit of the project.
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