The budget for the plan would also be cut by VND280.5 trillion.

The proposal received approval from most ministries, except the Ministry of Justice.

Earlier, the Construction Ministry aimed to build 1.4 million affordable homes, with 571,200 units in 2021-2025 and 845,500 units in 2026-2030 and estimated the plan required VND1,130 trillion.

However, many other ministries asked the Construction Ministry to reconsider the number of social houses and resources for the plan.

In the coming time, developing social housing projects would require more social resources and less of the state budget, the ministry said, citing information from a draft law on housing and a draft resolution on social housing policies.

Investing in social housing projects might pull the frozen property market out of the doldrums, it added.

At a hybrid conference on policies and solutions for the frozen real estate sector, the ministry put forth a VND110-trillion credit package for developers and buyers of social housing.

Besides, the State Bank of Vietnam was considering a different credit package for social housing developers and purchasers, while four state-run banks set aside a combined VND120 trillion to make loans available for them.

Interest rates for those loans would be 1.5 to 2 percentage points lower than the average of the four banks during the transaction time.

Source: Saigon Times