(Dan Tri) - Ho Chi Minh City has 86 unsold projects, equivalent to more than 54,000 units, increasing the shortage of housing supply and product imbalance. On the contrary, the lack of supply in the market pushes up housing prices.
According to data from the city’s Department of Construction, the Ho Chi Minh City Real Estate Association (HoREA) said that in the 2015-2023 period, the locality had 86 commercial housing projects that had stopped construction or were not yet under construction (inventory projects). During the same period, the market had only 52 projects under implementation, with a scale of more than 41,600 units.
Of the remaining projects, 30 have stopped construction and 56 have not yet started. There is even a project in Binh Tan district with an area of nearly 330 hectares that has not yet completed site clearance.
The association found that 86 projects are in stock due to many reasons, mainly legal problems. However, with the system of laws and sub-law documents that have just been issued, these issues are expected to be basically resolved in the near future.
However, the 86 unsold projects have led to many negative consequences. The total land use scale of the 86 projects is up to 964 hectares, causing waste of land resources and violating the principle of "economical and effective land use" according to the Land Law.
The total number of houses in these 86 projects is up to more than 54,000 units, increasing the shortage of housing supply and product imbalance, leading to a phase difference between the high-end and affordable housing segments.
The shortage of affordable housing has caused housing prices to rise continuously over the years, beyond the affordability of middle- and low-income earners in society. Many investors have fallen into a dilemma, lost business opportunities and had their capital "buried".
The Association recommends that competent state agencies urgently intervene to remove difficulties and restart these inventory projects.
Ho Chi Minh City real estate market has 86 unsold projects (Illustration: Trinh Nguyen).
While projects are in stock, capital is tied up, and are facing difficulties and cannot be implemented, the supply of housing in Ho Chi Minh City is scarce, pushing up housing prices.
In the first 11 months of this year, Ho Chi Minh City only had 12 housing projects approved for investment policy at the same time as investor approval, of which only 1 was a social housing project. Notably, no project was allocated land or leased land, and only 2 commercial housing projects were granted construction permits.
The number of projects and commercial apartments under development and eligible for capital mobilization in the past 11 months has dropped to a five-year low since 2020. Project transfer activities have also been hampered by various regulations, especially the transfer regulation requiring a land use right certificate for all or part of the project.
Data from a unit shows that the price of newly launched apartments continues to increase, in the price range of 72-142 million VND/m2. Apartments under 38 million VND/m2 have almost disappeared. The continuous increase in selling prices pushes the housing market away from its fundamental value, increasing liquidity risks and the gap between products on the market and the desires, needs and capabilities of the majority of home buyers.
Meanwhile, the development of affordable housing faces many challenges. Policies and preferential credit sources for social housing are not attractive enough, while investment procedures and renting and purchasing social housing are still complicated.
Source: https://dantri.com.vn/bat-dong-san/la-lung-thi-truong-dia-oc-tphcm-nguon-cung-thieu-nhung-e-he-du-an-ton-kho-20241222070653817.htm
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