What is the method for determining the lease-purchase price of social housing in Vietnam?
The method for determining the lease-purchase price of social housing in Vietnam is stipulated in Article 11 of Circular 09/2021/TT-BXD (effective from October 1, 2021) as follows:
The lease purchase price of social housing in Vietnam is determined according to the following formula:
Where:
- GiTM (VND/m2/month) denotes the lease purchase price per a usable square meter of an apartment (or housing unit) that is completely built at the location i within a month. The lease purchase price, exclusive of maintenance costs.
- Ai denotes the ratio between the residual value of an apartment (or housing unit) at location i (after deducting the down payment) compared to the original value of the apartment or housing unit for lease purchase purposes i (A < 1), calculated according to the lease purchase contract.
- 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 purchase purposes 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 purchase purposes, 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 purchase purposes;
* 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 purchase purposes.
+ 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 lease purchase period agreed upon between the seller and the lease-purchaser and not less than 05 years.
- L (VND/year) denotes the norm-bound profit of the project which is measured in year, equals 15% of total investment capital and is distributed into the area of social housing for lease purchase purposes.
- 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 way as prescribed in Article 9 herein;
- SiTM (m2) denotes the usable area of an apartment (or housing unit) for lease purchase purposes at the location i.
- Ki denotes the coefficient used for adjusting the lease purchase 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.
Best regards.
