HCMC – Achieving HCMC’s ambitious social housing development target will require close collaboration between government agencies, private developers, and financial institutions, said Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA).
The city plans to construct 69,700 to 93,000 social housing units by 2030. According to Chau, this goal depends on overcoming challenges and fostering cooperation among stakeholders to create favorable conditions for development.
A key component of meeting the target is land allocation. HoREA estimates that building 93,000 units would require 69 to 93 independent projects, with each having 1,000 units on average, and a total of 96 to 130 hectares of land.
To address land availability, HoREA has proposed several mechanisms. One involves allocating cleared public land to investors through a competitive bidding process. Another recommends that commercial developers transfer the 20% social housing land requirement back to the state if they choose not to build the units themselves. The state would then auction the land to new investors.
For cases where commercial developers offer alternative land or financial contributions instead of direct social housing construction, HoREA recommended using auction-based selection processes. Funds contributed in lieu of land allocation could be directed toward a dedicated land bank for social housing development.
The association noted particular challenges with rental-only social housing projects, citing low profitability and capital recovery periods exceeding 20 years. Tailored policies and incentives are essential to attract investment in these projects, which are crucial for the city’s housing goals.
Administrative hurdles also remain a significant bottleneck. HoREA proposed simplifying the investment approval process and piloting a mechanism for the Department of Construction to directly approve social housing projects, similar to how condominium redevelopment projects are handled.
Despite efforts, HCMC has completed just six social housing projects, with four more under construction, delivering nearly 6,000 units. This falls far short of the city’s 2021-2025 target of 26,200 to 35,000 units.
During an investment promotion conference on December 6, HCMC People’s Committee Chairman Phan Van Mai pledged to reduce the approval time for social housing projects. The process, which currently takes over a year, will be shortened to six months, he said.
