National Assembly Chairman Tran Thanh Man signed and issued Resolution No. 171/2024/QH15 of the National Assembly "on piloting the implementation of commercial housing projects through agreements on receiving land use rights or having land use rights".
The Resolution has allowed the pilot implementation of the land access method through agreements on receiving land use rights or having land use rights to implement commercial housing projects, which are not residential land.
Sharing with Lao Dong reporter, Mr. Le Hoang Chau - Chairman of Ho Chi Minh City Real Estate Association (HoREA) - said that this method, along with two other land access methods, is auctioning land use rights or bidding to select investors to implement projects using land to implement commercial housing projects, ensuring compliance with the orientation of Resolution 18-NQ/TW dated June 16, 2022 of the Party Central Committee.
However, according to Mr. Chau, in addition to perfecting land access methods to increase project supply and increase commercial housing supply to help reduce housing prices, there is also a very important goal that needs to be achieved when implementing Resolution No. 171/2024/QH15, which is to promote the restructuring of the real estate market, focusing on restructuring the commercial housing market for safe, healthy and sustainable development.
This person said that currently in some large cities, there is a pyramid model, a mismatch in commercial housing products when there is an excess of high-end housing but a shortage of affordable commercial housing and social housing.
This leads to commercial housing prices remaining "high", beyond the financial capacity of the majority of middle-income and low-income people in society.
Typically, the commercial housing market in Ho Chi Minh City over the past 5 years (2020-2024) has clearly shown a huge decline in the supply of commercial housing projects, leading to a serious shortage of affordable housing and social housing products.
There were no projects in 2020, 7 projects in 2021, 2 projects in 2022, 2 projects in 2023, and 12 projects in the first 11 months of 2024.
Notably, in 2020, the number of affordable housing products was only 163 units, accounting for 1%, but from 2021 to now, there are no more affordable housing products in Ho Chi Minh City.
On the contrary, the high-end housing segment continuously accounts for an increasingly large proportion of the housing market in Ho Chi Minh City, specifically 70.6% in 2020, 72% in 2021, 78.3% in 2022, 68.55% in 2023 and by 2024, it will completely dominate the housing market with 100% high-end housing.
“The price of high-end housing in the first 11 months of 2024 is very high, averaging up to 9.39 billion VND/unit, and this is only the primary housing price because the investor registered the house price with the Department of Construction when establishing the investment project, so the actual selling price of houses on the market is certainly even higher,” Mr. Chau cited.
This has exceeded the financial capacity of the majority of people. Therefore, it is necessary to add provisions to restructure the real estate market, focusing on restructuring the commercial housing market.
Accordingly, the Chairman of the Ho Chi Minh City Real Estate Association proposed adding an article or clause to the draft Decree to give priority to the provincial People's Committee in approving pilot projects for real estate businesses proposing to implement mid-range commercial housing projects or affordable commercial housing projects suitable to the actual situation of the locality.
