According to some projects in neighboring provinces, social housing apartments were quickly absorbed by the market when they were first offered for sale. With cheap prices, only from 800 million - 1 billion VND for an apartment, social housing products in Long An, Binh Thuan... are always of interest to many people, especially people with real housing needs.
According to statistics, the urbanization rate is 41% per year and it is forecasted that 50% of Vietnam's population will live in urban areas by 2030. The process of expanding, merging administrative boundaries or forming new satellite cities is an inevitable development trend. Therefore, it is extremely important to promote early development in suburban urban areas, neighboring provinces and especially the development of social housing at the present time.
Affordable apartment projects in provinces neighboring Ho Chi Minh City are a practical solution for social housing development.
Because over the past time, the development of social housing in Ho Chi Minh City has encountered many difficulties and has not met the expectations of many people. The difficulty comes from the lack of land to build this type of housing. Despite many efforts in the previous period, Ho Chi Minh City has only been able to provide 15,000 apartments under the social housing program.
Since 2018, the demand for affordable housing has been increasing, while the supply has shown no signs of strong growth. Therefore, since 2020, the shortage of affordable apartments has become more evident, accounting for only 1% of the total number of houses on the market.
In 2021, this shortage is even more alarming when out of a total of 14,443 apartments sold, there are no affordable apartments. Meanwhile, there are up to 10,404 high-end, luxury, and super luxury apartments (accounting for about 74%), the rest are mid-range housing (accounting for 26%).
According to the assessment of professional agencies, the demand for social housing of people in Ho Chi Minh City in the period of 2011-2020 is about 134,000 units, but by 2022, only 14 projects with about 15,000 units have been completed. That means social housing only meets more than 11% of the actual demand.
Meanwhile, the authorities are still struggling with legal issues, specifically the regulation of reserving 20% of land in commercial projects for social housing, which still has many shortcomings. The value of the 20% land fund in central districts is very different from that of projects in suburban areas, so the value cannot be compared. In addition, the living needs of people in social housing areas are also different from those of commercial housing buyers, especially in high-end, luxury projects.
Perhaps for the above reasons, many real estate businesses are not interested in this segment, even though Ho Chi Minh City continuously calls for and has many preferential policies for businesses investing in social housing.
Therefore, promoting the development of social housing in localities adjacent to large urban areas is a potential direction. These localities will become new destinations for investment and development of residential real estate, including affordable housing and social housing due to abundant land funds, many investment incentive mechanisms and policies, and increasingly better connected traffic infrastructure. This is also a way to promote the development of residents outside the center, avoiding putting pressure on the infrastructure of large cities.
Currently in Ho Chi Minh City, the Ring Road 3 and Ring Road 4 projects connecting the Eastern and Western provinces of the South are receiving much attention. The completion of Ring Road 3 is the key to opening up development in satellite urban areas identified in the construction planning of Ho Chi Minh City and regional planning, such as: Nhon Trach (Dong Nai), Thuan An City (Binh Duong), Northwest Cu Chi (Ho Chi Minh City), Duc Hoa and Duc Hue urban areas (Long An)...
When Ho Chi Minh City develops social housing along the belt roads, it will ensure good connectivity with urban areas as well as neighboring provinces, thereby increasing the attractiveness of social housing to customers.
In addition, promoting social housing in satellite urban areas will also create a more affordable and accessible product segment. This will be the driving force for the development of social housing projects, thereby realizing the dream of owning a home for many people without causing too many obstacles in moving or accessing necessary needs.
However, to solve the problem of lack of land for social housing development in Ho Chi Minh City, there are still many issues that need to be carefully considered. Because developing a satellite urban area with a living environment that meets the conditions for residents requires many factors. In addition to price and convenient transportation, it is still necessary to develop a synchronous social security system, commercial services, entertainment, etc. to attract residents.
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