Despite the rising demands for affordable and social housing, supply in HCM City remains limited.
According to the HCM City Real Estate Association (HOREA), in the nine months of 2020, three social house projects with 2,213 apartments were completed. From 2016 until now, HCM City has had over 13,186 apartments. There are five on-going projects with 4,758 apartments that are expected to be completed in 2020. It is estimated that 17,944 apartments will be completed in 2020 or 89.72% of the target.
However, from March to July, the real estate market has been badly affected by Covid-19, especially the affordable housing sector.
In the first nine months, the Department of Construction confirmed that 20 projects met the conditions to call for capital. However, only 2.5% of them are affordable housing, a decrease of 98.5% compared to the same period in 2019 even though applications for social houses and demand for affordable houses are rising.
According to many experts, the land plots near the city’s centre are expensive so it’s more reasonable to build far away but the investor will have to develop the infrastructure too. The land fund for social housing projects in HCM City is also running out and it’s impossible to find an investor that is willing to spend a huge amount of money on infrastructure development.
Le Hoang Chau, chairman of the HoREA, asked HCM City authorities to review the proposals in order to have suitable criteria for investors and contractors for state-owned social housing projects. The authorities can provide support package so that buyers can access preferential bank loans.
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