Real estate in Ho Chi Minh City: To keep prices down, the housing crisis must be solved

DNHN - Lawyer Le Net, a VIAC arbitrator, stated: "The State needs to listen to people's housing demands to establish proper legislation and how to manage real estate prices."

Dr Tran Du Lich, Vice President of VIAC, stated during the seminar "Remove Obstacles and Promote Investment in the Real Estate Sector" that the real estate market has contributed significantly in the area of real estate over the last 20 years. The urbanization process, the expansion of industrial infrastructure...

However, there are flaws and inefficiencies in the real estate market. The recent link between the financial industry and the opaque real estate market has produced significant problems. As a result, the government is correcting and strengthening these two markets. The financial and real estate markets may be thought of as two sides of the same coin.

According to VIAC Arbitrator Lawyer Le Net, the state needs to listen to people's housing demands to have proper legislation and how to manage real estate prices.

Mr Le Hoang Chau examined, emphasizing the opinion that the real estate market can only expand sustainably when it can meet the genuine housing demands of the majority of people: "The affluent may entirely build their mansions. Individuals have the right to live their lives as they see fit, but low-income people need affordable housing."

A lack of project supply leads to a lack of dwelling products. Particularly in Ho Chi Minh City, the market peaked in 2017, with investors bringing in 30,000 houses each year; however, in subsequent years, this figure has dropped to about 16,000 units per year. The market also evolves out of phase; if there is 1% of low-cost housing in 2020, there will be 0% in 2021.

Ho Chi Minh City is also the finest social housing development area in the nation, although, in the last five years (2015-2020), only 15,000 social housing units have been launched (75 per cent of the planned 20,000 units), while the country as a whole has only achieved 41 per cent. Meanwhile, Ho Chi Minh City today has over 900,000 employees renting dwellings, and they are always striving to improve living conditions in shacks.

As a result, the largest obstacle today in many residential real estate projects is the requirement that the project has 100 per cent residential land to be recognized as an investor, although most housing developments have mixed property. To create large-scale residential real estate projects with full amenities, such as the Phu My Hung urban area (District 7, HCMC), a big land fund is required.

Although the Law on Investment, which goes into effect on January 1, 2021, has included the case of "residential land and other forms of land" being recognized as an investor, it has not been deleted (because if the project Projects that do not have a percentage of residential land in the entire land area will not be recognized as an investor).

PV