HCMC — Despite strong demand, HCMC has seen no new affordable housing projects getting off the ground in the first half of this year, while high-end apartment developments continue to dominate the market, according to a mid-year property report by the HCMC Real Estate Association (HoREA).
In the first six months of the year, the city approved only four luxury apartment projects for capital mobilization, offering a total of 3,353 units worth over VND10.2 trillion. There were no new mid-range or low-cost housing projects.
Data showed that HCMC has built more than 4.83 million square meters of housing so far this year, reaching over 60% of its annual target. Of this, individual housing accounted for nearly 2.9 million square meters, while commercial housing made up over 1.96 million square meters. Since 2021, the city has added over 33.7 million square meters of housing, equivalent to 84% of its 2021–2025 goal.
However, social housing development remains far behind targets. HCMC aims to build 35,000 social housing units during the 2021–2025 period but has only completed around 4,100 units, or 11.7% of the plan, as of mid-2025.
Le Hoang Chau, chairman of HoREA, emphasized the need to encourage more private-sector participation to achieve the city’s broader goal of 100,000 social homes by 2030. He cited recent policy frameworks, including Resolution 201 and Decree 192/2025, along with proposed legal amendments expected by year-end, as potential enablers.
Meanwhile, condo prices on the primary market remain high. Average prices for high-end units are around VND90 million per square meter, or roughly VND9.7 billion per unit, which is well beyond the reach of most low- and middle-income earners.
Analysts attribute the lack of affordable housing to high development costs and thin profit margins, which discourage investor interest. Suitable land for low-cost housing is also becoming scarce, while many projects remain stalled due to legal bottlenecks. As of now, over 220 property projects are awaiting legal review, with only about 35% having their issues resolved.
To address the imbalance, HoREA has proposed that the city release a list of over 370 publicly owned land parcels totaling some 3,592 hectares that could be used for social housing projects. The association also called for streamlining administrative procedures, improving credit access, and establishing a dedicated fund to support affordable housing development.
In a separate development, Lam Dong Province plans to build nine resettlement areas for the North-South high-speed railway project. The province has allocated a budget of VND447 billion for site clearance, with the first resettlement site set to break ground in early August.
