In 2024, housing supply was recorded at its lowest level in the past 5 years, with most of the projects launched during the year in the mid- and high-end segments, leading to a lackluster transaction situation. Due to the lack of supply, real estate prices remained high, with new projects having prices that were higher than in previous periods.
Ms. Giang Huynh - Director of Research and S22M Savills Vietnam - shared that it is expected that in 2025, the supply will show signs of gradual improvement, but the scale will still be modest compared to the period of 2018-2019. The supply structure is still mainly in the mid- and high-end segments, while low-cost and affordable housing will continue to be scarce because the land fund for low-cost housing is increasingly limited. This means that housing prices are unlikely to fall sharply, especially in central areas and new urban areas well connected to the center.
In 2024, Ho Chi Minh City had no commercial housing or social housing projects allocated land or leased land in the past 11 months and only granted construction permits for 2 commercial housing projects.
This will result in no new housing projects being added to the real estate market and no new commercial housing projects or social housing projects eligible for implementation in early 2025.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, said that although Ho Chi Minh City has piloted commercial housing projects through agreements on receiving land use rights or having land use rights within 5 years, legal policies are delayed in putting them into practice, plus the delay of commercial housing projects often takes 3-5 years.
Therefore, to increase the supply of commercial housing products in 3-8 years, in addition to perfecting land access methods to increase project supply, it is also necessary to promote the restructuring of the real estate market.
The Ho Chi Minh City People's Committee has recently announced a report on the planning of Ho Chi Minh City for the period 2021-2030, with a vision to 2050. The focus is on developing affordable housing for workers and low-income people to access housing.
By 2030, Ho Chi Minh City strives to achieve an average housing floor area of 26.5m2/person; 358 million m2 of floor, including 192 million m2 of existing housing; repair and new development of about 166 million m2 of floor.
Of which, social housing is about 4.98 million m2, individual housing built by people is about 63.9 million m2, commercial housing and other types of housing are about 97.12 million m2.
At the same time, the planning aims to develop affordable housing, suitable for the affordability of low-income and middle-income households and policy beneficiaries. Affordable housing is expected to account for about 60% of the total number of apartments in new housing construction projects.
Diversify methods of social housing construction, mainly using non-budgetary capital; prioritize using budget capital for leasing; reserve 20% of total residential land area in commercial housing construction investment projects according to housing law for social housing construction.
