Hung Thinh Corporation plans to build 150,000 social housing units

DNHN - The Ho Chi Minh City Real Estate Association (HoREA) claims that there is a severe shortage of homes due to a mismatch between supply and demand in the real estate market.

The Ho Chi Minh City Department of Construction has released a study on the city's real estate market for the first half of 2022. Notably, 80.13 per cent of all the apartments that qualified for capital mobilization to sell newly constructed homes were in the high-end real estate market.

As a result, in the first half of the year, the Department of Construction verified 17 projects totalling 9,456 homes with a combined floor area of 860,205m2 were eligible to raise finance for future goods.

There are 8,937 apartments are available; low-rise housing 519 units; floor area: 191,561m2, with the total value to be mobilized is 77,591 billion VND. The high-end segment is 7,577 units, accounting for 80.13%; The mid-end segment has 1,879 units, accounting for 19.87%, while the affordable segment has no units. 

The number of projects raising money climbed by 8.3 per cent in the first half of 2021, while the luxury apartment category grew by 111.29 per cent and the mid-range apartment segment shrank by 34.41 per cent. 

The Department of Construction views this as the most glaring indicator of an unsustainable real estate market development and a symptom of a mismatch between supply and demand.

From the start of 2021 till the present, Ho Chi Minh City has only had one project that is thought to be transferable. 

The project transfer, according to the Department of Development, is one of the methods for resolving issues with individual projects, aiding in their recovery, continuing to start construction on projects that have halted, finishing up tasks, bringing goods to market, and reducing inventories. However, owing to inadequate legal processes, the transfer of housing developments has drastically diminished in recent years.

The Ho Chi Minh City Real Estate Association (HoREA) claims that there has been a mismatch between supply and demand in the real estate market, with a relatively small number of projects and therefore a very small number of homes available.

HoREA discovered that, in contrast to 2017, when the Ho Chi Minh City real estate market saw the highest growth in the previous ten years thanks to a total of 42,991 homes listed for sale, there has been a decline in project supply in recent years, which has led to a decrease in the supply of housing products, as seen in the continuously declining number of homes listed for sale.

In particular, the supply in 2018 was only 28,316 houses, equal to 65.8 per cent of the supply in 2017; in 2019, the supply was only 23,046 houses, equal to 53.6 per cent of the supply in 2017; in 2020, the supply is only 16,895 houses, equal to 39.2 per cent of the supply in 2017, in 2021, the supply is only 14,443 houses, equal to 33.6 per cent of the supply in 2017, and in the first six months of 2022, the supply is only 9,456 houses, equal to 44% compared to the first 6 months of 2017.

In Ho Chi Minh City in 2020, affordable housing under 30 million VND/m2 accounts for just 1%; Only high-class and mid-range housing will be available in 2021 and the first six months of 2022, as the market no longer has affordable housing (0 per cent); while high-end housing increasingly dominates as in 2017 (25.5 per cent), 2018 (30 per cent), 2019 (accounting for 67.1 per cent), and 2020 (accounting for 42.1 per cent); The high-end housing category accounted for 80.13 per cent in 2021 (72%) and the first six months of 2022.

PV