Only 1 Affordable Housing Project Approved for Investment
Ho Chi Minh City’s Department of Construction has recently reported on the supply of projects and real estate products in the city’s market over the past 11 months.
In terms of new project approvals, 12 housing projects have been given the go-ahead for investment in Ho Chi Minh City during this period. However, only one of these projects is categorized as affordable housing.
Of the 12 newly approved projects, six were processed and approved by the People’s Committee of Thu Duc City, thanks to their delegated authority and streamlined procedures.
In the past 11 months, only two commercial housing projects in Ho Chi Minh City were granted construction permits. Photo: Anh Phương |
When it comes to land allocation and leasing, the city has not processed any procedures for commercial or affordable housing projects this year. Only two commercial housing projects have received construction permits.
Over the past 11 months, four commercial housing projects with a total of 1,611 units have met the conditions for sale, and all of them fall into the luxury real estate segment. The total capital needed for these 1,611 units is VND 15,142 billion, averaging VND 9.39 billion per unit. Compared to the same period last year, the number of houses eligible for sale in Ho Chi Minh City has decreased by 90%.
Additionally, there are 31 commercial housing projects under construction, offering a total of 31,167 units.
Apartment Prices Expected to Continue Rising
Assessing the city’s real estate market over the past 11 months, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), pointed out that the approval of only 12 projects is insufficient. This number is just about one-fifth of the projects approved for investment in the pre-COVID-19 years.
Regarding the fact that no housing project has been allocated land or leased, and only two commercial housing projects have received construction permits, Mr. Chau emphasized that this will result in a lack of new projects entering the market.
With the average price of eligible houses for sale reaching VND 9.39 billion, Mr. Chau noted that this is the first time the luxury housing segment has dominated Ho Chi Minh City’s real estate market.
 For the first time, the luxury housing segment dominates Ho Chi Minh City’s real estate market. Photo: Anh Phương |
“Currently, there is no supply of mid-range or affordable new homes at reasonable prices in commercial housing projects. This further distorts the market’s product structure and fails to meet the actual housing needs of the majority of low- and middle-income earners,” Mr. Chau stressed. “As a result, the market is developing in an unsustainable and unhealthy manner.”
To illustrate the imbalance in Ho Chi Minh City’s housing product structure over the years, Mr. Chau provided the following data: in 2020, luxury housing accounted for 70% of the market. This percentage increased to 72% in 2022, 78.3% in 2023, and currently stands at 68.55%.
Regarding the continuous rise in housing prices over the years, the HoREA Chairman attributed it to the scarcity of commercial housing projects, which has led to a limited supply of housing products. From 2015 to 2023, apartment prices increased by 15% to 20%. With the application of the adjusted land price framework, apartment prices in 2025 are predicted to rise by 15% to 20% compared to this year.
Anh Phương
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