"Huge" housing demand
According to a study by Savills Vietnam in the period 2019-2023, real estate prices in Hanoi increased by an average of 6%/year and in Ho Chi Minh City by 3%/year, while personal income increased by only 4% and 3% respectively. This widening gap makes home ownership more difficult than ever for many people.
In addition, legal barriers, problems with developers and delays in issuing housing support policies have made the situation more complicated.
A sustainably developing real estate market often has diverse segments, especially class B and C products.
However, in both Hanoi and Ho Chi Minh City , the supply of these types of housing is in serious shortage. The demand for about 50,000 apartments per year, mainly from middle-income people and young households, is still not fully met.
Increasing high-end projects, while the supply of affordable housing is limited.
According to Ms. Giang Huynh - Director of Research and S22M Department at Savills, both Ho Chi Minh City and neighboring provinces such as Binh Duong, Dong Nai, and Long An are facing a shortage of housing supply.
In the near future, Ho Chi Minh City will witness an increase in high-end projects, while the supply of affordable housing is limited.
In contrast, Hanoi will focus on developing Class B projects. This imbalance is due to many factors, including income growth, limited land fund and high land costs, along with complicated administrative procedures in licensing new development projects.
Series of infrastructure and policy support
With public investment in infrastructure accounting for about 6% of GDP, the Government is implementing many large projects such as building roads, bridges, airports and seaports to help improve traffic connectivity, shorten geographical distances and travel times, especially between urban centers and suburban areas.
"The transit-oriented development (TOD) model, typically the metro system, has proven to be effective in solving traffic problems and providing housing. By focusing on developing areas around metro lines, construction density increases, facilitating travel and connection between areas.
At the same time, exploiting land funds along metro lines also helps reduce investment costs, thereby creating more affordable housing options for people," the Savills expert added.
Infrastructure and policy: The "booster" for affordable housing supply.
Expert Giang Huynh said that to reduce pressure on land funds and urban costs, Hanoi and Ho Chi Minh City are aiming to expand urban areas to neighboring provinces such as Binh Duong and Bac Ninh.
Heavy investment in transport infrastructure has facilitated this process, making suburban areas more attractive to investors and residents.
She also said that the promulgation of new laws such as the 2024 Land Law, the 2023 Real Estate Business Law and the 2023 Housing Law are expected to create positive changes in the real estate market.
These new legal regulations promise to improve land use efficiency, simplify administrative procedures and create more favorable conditions for investors to participate in the market.
To address the housing shortage and prevent land speculation, the 2023 Real Estate Business Law has introduced a regulation prohibiting the subdivision of residential land in large urban areas from January 31, 2025.
At the same time, the Housing Law 2023 also has important adjustments, focusing on housing development in major urban areas.
In addition, the mandatory regulation of reserving 20% of land area for commercial projects has been abolished, opening up opportunities for investors to convert this area to build social housing.
Social housing investors will enjoy many attractive incentives such as free land use, no land rent, and the opportunity to access loans with preferential interest rates.
Opportunities for investors in the social housing segment
To solve the problem of adequate housing and people's affordability, Savills Vietnam assesses the need for a comprehensive solution, combining the strengths of both the public and private sectors.
In the context of limited state budget and high interest rates, financing social housing projects is facing many difficulties.
At the same time, the private sector is also facing inflationary pressure on input costs. Therefore, effective cooperation between the two sides is urgent.
Global targets for carbon emissions reduction also add urgency to the issue. Affordable housing providers can help achieve these targets by renovating existing properties or converting unsuitable properties, such as vacant offices or shopping centres, with the support of favourable planning and regulations.
In addition, increased building density and efficient planning will play an important role in providing affordable housing.
City governments should have strong incentives for landowners to work together to create new sustainable residential areas.
By maximizing land use, combined with public facilities and green spaces, we can partly solve the increasingly urgent housing problem. Close coordination between the government and investors will be the key to making these ideas a reality.
Source: https://www.nguoiduatin.vn/ha-tang-va-chinh-sach-thuoc-tro-luc-cho-nguon-cung-nha-o-gia-re-204241001144901409.htm
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