HCMC – The Ministry of Construction is seeking feedback on a draft Government resolution to pilot the development of affordable commercial housing, allowing the no-bid selection of project investors and capping profit margins at 15%, while prohibiting buyers from reselling their homes within five years.
The draft resolution follows a directive from the prime minister to study policies to improve access to housing.
According to the ministry, housing prices, land plots and other real estate segments have risen continuously in recent years. Prices of apartments, townhouses, villas and land plots have increased by an average of 10-15% per year, with some periods recording rises of up to 30%. The increases have outpaced average income growth, reducing housing affordability.
Market supply is concentrated in high-end and mid-range segments, while housing priced within reach of the majority remains limited. Even middle-income earners face housing difficulties, particularly in major urban areas.
Under the draft, local authorities would allocate land for affordable commercial housing projects based on demand. Investors would be appointed without auction or bidding.
Developers would implement investment and construction procedures under a special mechanism similar to social housing or in accordance with construction law. They would be entitled to a maximum profit of 15% of total project cost.
For capital mobilization through capital contribution, investment cooperation, joint ventures, partnerships or loans from credit institutions, a land allocation or land lease decision would not be required.
Developers would be eligible for preferential loans with lower interest rates and longer tenors than those applied to conventional commercial housing, subject to regulations issued by the prime minister from time to time.
Sale and lease-purchase prices would be decided by investors based on full calculation of land, construction and other lawful costs, plus a maximum profit margin of 15%.
After project completion and commissioning, developers must conduct audits and finalize costs, and submit them to provincial-level authorities for post-audit of sale and lease-purchase prices, similar to the social housing mechanism.
Buyers and lease-purchasers must be domestic individuals. Each individual may buy or lease-purchase only one unit directly from the investor and may not resell the unit within five years from the date of full payment.
The draft also outlines policy orientation for housing targeting middle-income earners with monthly incomes above VND20 million, in line with local conditions and market principles.
