HCMC – The Ministry of Construction is seeking public feedback on a draft resolution that would raise profit margins for social housing developers.
The proposal, which is aimed at spurring more investment in low-cost housing, would increase the permitted profit rate to 13% from the current 10%.
If approved, developers would use the new rate to calculate selling, leasing, and lease-purchase prices for social housing units. The draft measure covers all social housing projects, including those built on public land, on 20% land reserves in commercial housing developments, and projects already completed but awaiting final price approval.
The proposal follows calls from the HCMC Real Estate Association to lift profit margins to 15% to attract more builders. Industry representatives said the present 10% cap is not appealing, citing frequent cost fluctuations and lengthy administrative procedures. They added that rising construction costs and extended project timelines reduce actual returns.
Under a national plan to build one million social housing units by 2030, Vietnam aimed to add 130,000 new homes by 2024. However, data from the Ministry of Construction showed only about 21,000 units have been completed, equivalent to 16% of the target.
