HCMC – More than 300 land plots have been proposed for commercial housing projects in HCMC under a pilot mechanism introduced by the National Assembly’s Resolution 171, aimed at easing supply constraints in the housing market.
As of March 20, 256 real estate firms had submitted proposals for 303 commercial housing projects covering nearly 2,000 hectares, reported the Vietnam News Agency. Most of the proposed land is currently designated as agricultural or non-residential use.
The pilot mechanism has attracted strong interest from businesses amid a growing shortage of housing in the city, particularly in the affordable segment.
However, regulatory challenges and inconsistencies are hindering progress. The HCMC Real Estate Association (HoREA) has raised concerns about legal uncertainties, especially regarding land classification, approval authority, and project procedures. The association submitted formal recommendations to the Government on March 21 through Document No. 39.
A key issue involves land previously designated for defense or security purposes. Although some of this land has been rezoned, it has not been officially transferred to local authorities. Current rules allow the Ministry of National Defense or Ministry of Public Security to manage such land, but the draft decree under Resolution 171 requires these ministries to coordinate with provincial governments, leading to potential overlaps and delays.
HoREA proposed simplifying the process by allowing local land authorities to compile project lists without duplicating evaluations, while investment decisions for defense and security land should remain with the relevant ministries.
The association also suggested prioritizing project approvals based on application timing when multiple proposals exceed land limits, aiming to ensure transparency and incentivize timely submissions.
HoREA Chairman Le Hoang Chau said these adjustments would help the pilot mechanism function more effectively, enabling quicker project implementation and more strategic land use planning.
With HCMC facing a critical housing shortage, particularly in mid-priced commercial housing, removing legal bottlenecks in the pilot program is seen as essential to unlocking investment and accelerating urban housing development.
