Photo: Le Minh

The Ministry of Construction has issued guidelines for calculating rents for people living in public and private low-cost housing projects throughout Viet Nam.

The guidelines will also cover the sale price of apartments and houses to residents in low-income groups.

The housing projects are part of a six-year programme that got underway this year to solve an urgent need to provide affordable accommodation for students, industrial-zone workers, and low-income earners.

Pham Van Khanh, director of the Institute of Construction Economics at the construction ministry, said newly-issued documents gave specific instructions on rents and sales prices in accordance with the Prime Minister's Decisions 65, 66, and 67.

According to the documents, the prices of apartments for sale and the level of rent charged cannot include land-use-right fees, value-added tax or corporate tax because the Government has already exempted initial investors from most of these.

Some low-income renters, including students, have often been forced to pay a service rate calculated by landlords. However, the guidelines now ensure they get a better rate.

And, instead of being included in the rent, service fees (electricity and water supply), will be paid by tenants directly to the contracted providers.

Project owners will be required to follow strict price-calculation formulas. The rent price for students, however, will differ according to whether the housing is State or privately owned.

State housing units targeted for students only will be available for rent at a more or less fixed price. Each student will be allocated four square metres of space on average.

"Rent for students in privately invested housing will be more flexible, but will still have to follow guidelines," Khanh said.

For private construction enterprises, the profit margin for both leasing and selling to low-income groups can only be 10 percent - or less - of the total investment capital.

Rol.vn - Source: Vietnam News