HCMC – The HCMC Real Estate Association (HoREA) has proposed tax exemptions and reductions to encourage investment in rental-only housing projects and address the demand for social housing among low-income residents.
In a letter to the People’s Committee of HCMC, HoREA highlighted challenges in developing social housing. A major issue is the lack of available land. Current regulations mandate that 20% of land in commercial housing projects be allocated to social housing, but implementation faces coordination obstacles among agencies.
HoREA urged the city to adopt flexible policies for land allocation and usage. Streamlining legal processes and improving investor bidding procedures were identified as critical steps to accelerating projects.
The association also proposed credit incentives, including access to low-interest loans from the Vietnam Bank for Social Policies, to support developers. These measures aim to reduce costs and make housing more affordable for low-income households.
According to the HCMC Department of Construction, from 2021 to date, HCMC has initiated just ten social housing projects, delivering nearly 6,000 units. This is well below the target of building 69,700 to 93,000 units by 2030.
At a recent meeting on promoting affordable housing for low-income earners, city leaders pledged to shorten investment approval timelines, aiming to reduce the process from over a year to six months. Current efforts prioritize rental-only projects to meet the needs of workers, public officials, and armed forces personnel.
The city has listed seven social housing projects with 8,000 units open for investment and reported that 21 businesses have registered to develop 52,000 units on privately secured land.
