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Dec 20, 2017 / 09:29

Hanoi to order commercial apartments for resettlement

The Hanoi People’s Committee has proposed the Government to put in place a special mechanism to order developers to build more than 17,600 commercial apartments for resettlement purpose by 2020.

The total investment capital of the apartments is estimated at roughly 18.51 trillion VND (815.42 million USD).
The committee said that it has so far prepared 27 projects which will include roughly 19,800 apartments and cover a total area of 28.5 hectares to call for investors.
Under the mechanism, Hanoi will provide cleared land and select qualified investors to build the resettlement apartments as approved planning.
Hanoi will need more than 17,600 apartments for resettlement purposes by 2020.
Hanoi will need more than 17,600 apartments for resettlement purposes by 2020.
Meanwhile, the investors will only be allowed to sell the apartments at a maximum profit of 10 per cent of their investment or sell 15 per cent of the flats at market prices.
To be qualified for the selection, investors must meet ten criteria such as experience, financial status, governance and committed schedule.
With this mechanism, it is expected that quality of homes for resettlements would be improved and the accountability of developers would be enhanced.
Hanoi started piloting this mechanism for six projects with a total of more than 4,300 apartments which were expected to be completed by 2020.
The capital city has recently also agreed to construct 16 apartment buildings in the Viet Hung Urban area to resettle 26,200 residents of Hoan Kiem District's Old Quarter.
According to the plan, the buildings will reach 8 or 9 storeys in height and include public facilities, such as kindergartens, primary schools, health clinics and other public works.
Additionally, the city's People's Committee will choose the investors for the construction, while Hoan Kiem District's People's Committee is responsible for supervising the construction work and resettling the people who will receive the apartments.
It also said that people, who are included in the resettlement, could buy or rent apartments in the building for resettlement in the Viet Hung Urban Area.
However, one year after completion, if there are unoccupied flats, the investors will be eligible to sell the apartments to other buyers in the district.
The resettlement aims to ease the high population density in the Old Quarter, address the degraded living conditions of local people and preserve heritage sites.
The current population density of the Old Quarter stands at 823 people per hectare, well in excess of the 2020 target of 500 people per hectare.
According to the Hanoi People's Committee, the Old Quarter spans 10 wards of Hoan Kiem District, covering a total of 81 hectares.