81,000 people in HCM City need accommodation each year in the 2016-2020
period as the city continues to attract people from the countryside,
according to the HCM City Real Estate Association (HoREA).
HoREA said that the southern metropolis’ current population stands at 13
million, including 500,000 who live in rented apartments. Around 3 million
people that have moved to the city for work also need accommodation. However,
the supply of apartments of one or two bedrooms priced at around VND1 billion
(USD45,000) remains limited.
Around 81,000 people in HCM City need
accommodation each year in the 2016-2020 period
Le Hoang Chau, HoREA Chairman said that low-cost housing
projects still face many difficulties in implementation related to site
clearance and loans, leading to the modest supply.
Under current regulations, commercial housing projects of 10ha or more are
required to allocate 20% of the land to social housing, which Chau claimed
may not be suited to specific projects. He suggested an option that investors
can exchange land lots or apartments of equal value at other locations, or
pay the required 20% land allocation in cash to localities so that they can
use the money so that their upmarket developments would not be affected by
low income earners.
The State Bank of Vietnam’s Circular 36 issued early 2016 restricts credit in
the property market, so lending interest rate for this sector has grown.
Chau also noted that it takes investors up to two years to complete
procedures for building affordable housing projects, which should be
Besides cheap apartments, investors should also focus on building houses for
low-income earners to lease, he said.