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Tuesday, June 18, 2024

Thousands of homes sit empty amid housing shortage

By Truc Dao

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HCMC – At least 18,000 resettlement apartments in Hanoi and HCMC are unoccupied, leading to annual maintenance costs of hundreds of billions of Vietnamese dong, according to the Vietnam Association of Realtors (VARS).

This issue arises as the demand for housing continues to exceed the available supply. In Hanoi, around 4,000 out of 14,200 resettlement apartments are vacant, according to a report by the city’s People’s Committee. Despite some projects having residents, many units, including those meant for commercial use, have remained unleased for years.

In HCMC, over 14,000 resettlement apartments are empty. The Binh Khanh resettlement area in Thu Duc City and the Vinh Loc B resettlement area in Binh Chanh District account for more than 12,000 and 2,000 of these vacant units, respectively.

VARS data showed that since 2018, the supply of housing, particularly apartments, has sharply declined due to fewer project approvals and legal and financial obstacles hindering ongoing projects. The annual shortfall in housing is estimated at 50,000 units in major cities.

Many resettlement areas are located far from city centers and lack public amenities, making them less attractive to residents. Construction issues, including poor-quality materials, inadequate design, and subpar execution, also contribute to the vacancies. Furthermore, current compensation and resettlement policies under the Land Law are seen as insufficient.

To address these issues, VARS suggests better planning and clearer regulations for selecting resettlement locations. They recommend improving the management and maintenance of these areas and providing financial support, career counseling, and job training to help residents adjust.

VARS also proposes integrating resettlement housing with social housing to access favorable funding and interest rates from a VND120 trillion credit package.

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