Housing supply in Ho Chi Minh City is seriously unbalanced with the high-end segment dominating, while affordable housing is almost absent.
People learn about a real estate project that has just been launched in the eastern area of Ho Chi Minh City - Photo: NGOC HIEN
On December 18, the Ho Chi Minh City Real Estate Association (HoREA) reported on the Ho Chi Minh City real estate market. Accordingly, the city's real estate market is showing signs of recovery, but the pace is still slow and facing many challenges.
In particular, housing supply is seriously unbalanced with the high-end segment dominating, while affordable housing is almost absent.
Specifically, in the first 11 months of 2024, the real estate market in Ho Chi Minh City grew positively again at around 9%. However, data from the Department of Construction shows that the supply of housing projects and products is very limited. Only 12 housing projects were approved for investment, no housing projects were allocated land or leased land, and only 2 commercial housing projects were granted construction permits.
"The situation of no commercial housing or social housing projects being allocated land or leased land in the past 11 months and only two commercial housing projects being granted construction permits and no social housing projects being granted construction permits will result in no new housing projects being added to the real estate market and no new commercial housing or social housing projects being eligible for implementation in early 2025," HoREA warned.
Notably, 100% of commercial housing projects eligible for capital mobilization in the past 11 months were in the high-end segment. Specifically, only 4 commercial housing projects were eligible for capital mobilization to bring products to the market, a 75% reduction in the number of projects with a total of only 1,611 houses, all of which were high-end housing.
The total capital mobilization value of 1,611 houses is 15,142 billion VND, the average house price is very high, up to 9.39 billion VND/house. This shows a serious imbalance in the housing product structure, making it difficult for people with low and middle incomes to access housing.
"This is the first time the high-end housing segment has dominated the entire real estate market in the city. There is no longer a supply of mid-range and affordable housing in commercial housing projects, further distorting the housing product structure in the city's real estate market, failing to meet the real housing needs of the majority of middle-income and low-income urban people, and the market is developing unsustainably, unsafely and unhealthy," HoREA commented.
In addition, HoREA also warned about the situation of 86 "inventory" commercial housing projects with a total scale of up to 964.38 hectares, causing a great waste of land resources.
HoREA forecasts that the real estate market in Ho Chi Minh City will continue to recover in 2025, but there will still be many difficulties, especially the pressure of corporate bond maturity.
Therefore, the association proposed a number of solutions to promote the safe, healthy and sustainable development of the market, including the early issuance of decrees guiding the implementation of the law, removing legal obstacles for projects and restructuring the housing market.
Source: https://tuoitre.vn/can-ho-ban-ra-o-tp-hcm-co-gia-binh-quan-den-9-39-ti-dong-2024121817255187.htm
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