Low wages make it hard for workers to afford social housing
According to a recent report, Bắc Ninh province in Vietnam has been struggling to sell its social housing units to workers. Despite being a prominent industrial hub in the northern region, only 357 out of 1,677 available units have been sold. This begs the question: why are these social housing units not attracting buyers?
Workers opt for alternatives
Many factory workers in Bắc Ninh come from nearby provinces or mountainous regions in the north. As they already own homes in their hometowns, there is little incentive for them to purchase social housing units near the industrial zone. Instead, they prefer to save money by choosing to live in rented accommodation.
High costs and fees
The prices of these social housing units in Bắc Ninh are still beyond the means of most workers. Even if they were able to afford the initial down payment, the monthly mortgage payments, along with various fees, would burden them financially. It is unrealistic to expect workers earning 15 million VND or less to afford a house worth 500 million VND. As a result, the majority of workers continue to rely on renting as a more affordable and convenient option.
Limited target audience
Even with the option to pay in installments over 30 years, many workers still cannot afford social housing units. Moreover, these units are primarily intended for local residents, meaning only individuals native to Bắc Ninh province are eligible to purchase them. Workers from other provinces who already own land or prefer to invest in their hometowns are unlikely to consider buying these social housing units. Only those in higher-paying positions, such as technical or managerial roles with monthly salaries exceeding 20 million VND, may be able to afford them.
Solutions for the future
To address the issue of low demand for social housing among workers, it is crucial to consider their needs and financial capabilities. Luxury designs and high-end features may not be as essential to this target audience as affordability. One potential solution could be to build rental apartments within social housing projects, while offering low-rise units for sale. This approach would cater to the preferences of workers in rural areas who may still be hesitant to live in high-rise apartments. Additionally, it is important to reduce unnecessary management fees, parking fees, and maintenance costs associated with these housing projects to make them more attractive to potential buyers.
In conclusion, the lack of demand for social housing among workers in Bắc Ninh is primarily due to low wages, high costs, and limited appeal to their specific needs. By considering more affordable options and streamlining expenses, developers can better meet the housing needs of workers in the province.