(NLDO) - Ho Chi Minh City currently has 86 commercial housing projects that have been suspended or not yet constructed (in stock) with a scale of 210.30 hectares that need to be rescued.
The Ho Chi Minh City Real Estate Association (HoREA) has just announced an overview of the Ho Chi Minh City real estate market in the first 11 months of 2024 and proposed a number of solutions to promote safe and sustainable market development.
According to HoREA, in 11 months of 2024, Ho Chi Minh City only had 4 projects raising capital, down 75% compared to the same period in 2023; the total construction floor area has decreased dramatically from 1.621 million m2 of floor space to now more than 189,000 m2 of floor space.
The total value of capital needed to be mobilized also decreased by 90% to VND15,142 billion instead of VND156,000 billion.
Regarding apartments, high-end projects in the first 11 months of 2024 had 1,611 units, accounting for 100%, while mid-range and affordable apartments had absolutely no apartments. This shows the alarm in the "inverted pyramid" model.
Since the beginning of the year, only one social housing project has been approved in principle but has not yet been granted a construction permit; there are 6 social housing projects with 4,754 apartments under construction at a standstill due to legal problems, and 2 projects with 1,512 apartments have been completed but have not been accepted.
Ho Chi Minh City has many high-end real estate projects while lacking affordable projects.
Regarding investment in commercial housing development, in the period of 2015-2023, Ho Chi Minh City only has 138 projects approved for investment, but in reality, there are only 52 projects being implemented with a scale of 342.58 hectares with 41,637 houses including 35,556 apartments and 6,081 low-rise houses.
Meanwhile, Ho Chi Minh City has up to 86 commercial housing projects that have stopped construction or have not been constructed (in stock), including 30 projects that have stopped construction with a land use scale of up to 210.30 hectares with 21,676 houses; 56 projects that have not been constructed have a land use scale of 754.08 hectares with 32,375 houses. Among the 56 projects that have not been constructed, there is a project that is still clearing the land, which is the project to invest in building technical infrastructure and social infrastructure of Tan Tao Residential Center - Area A, Tan Tao Ward, Binh Tan District, with a very large land area of up to 329.96 hectares.
The Association found that 86 projects are in stock due to many reasons, mainly due to legal problems. This large inventory has led to many negative consequences, leading to an extremely wasteful situation of land resources, violating the principle of "economical and effective land use" of the Land Law.
The total number of houses in stock of 86 projects is up to 54,051 units, including 46,986 apartments and 7,065 low-rise houses, increasing the shortage of housing supply and the imbalance of housing products, leading to a phase difference in the high-end housing segment, a lack of affordable housing and is the main reason for the continuous increase in house prices over the past many years, exceeding the purchasing power of middle-income and low-income people in society.
At the same time, 86 investors fell into a "dilemma", lost business opportunities, and had their capital tied up, while the resources of the enterprise were also the resources of the economy and society.
Therefore, the Association recommends that competent state agencies urgently take action to remove difficulties to restart these inventory projects.
According to HoREA, there is a delay for newly issued laws and sub-law documents to overcome shortcomings and delays in law enforcement by a number of state officials, civil servants and public employees.
There is a delay due to the process and procedures for investment, construction and implementation of real estate projects, commercial housing, and social housing, which must go through many stages and steps, so it takes a lot of time...
Therefore, HoREA recommends that the Government soon issue a Decree detailing and guiding the implementation of the Resolution "Special mechanisms and policies to remove difficulties and obstacles for projects and land in the conclusions of inspections, examinations, and judgments in Ho Chi Minh City, Da Nang City, and Khanh Hoa Province" to promptly resolve projects that have been "legally entangled" for many years.
In particular, it is recommended that the Government pay attention to the maturity of privately issued corporate bonds after 2 years with a total value of about 180,000 billion VND, the highest in the 3 years of 2023-2025 to ensure safety for the financial market and support businesses in difficulty but with prospects for recovery.
HoREA also hopes that the Ministry of Natural Resources and Environment will pay attention to directing the development of the "First Land Price List" in accordance with the provisions of the law on land and in accordance with local practices to be applied from January 1, 2026.
Source: https://nld.com.vn/tp-hcm-con-86-du-an-bat-dong-san-ton-kho-can-giai-cuu-196241219113706891.htm
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