Shortage of apartment housing supply in Ho Chi Minh City in 2021

"The trend of urban development in Ho Chi Minh City is still in the form of "oil slicks" and low-rise buildings, which have not met the goals and requirements of urbanization and urban development.

That is the opinion of the Chairman of the Ho Chi Minh City Real Estate Association (HoREA) about the real estate market in Ho Chi Minh City in 2020.

Thu Duc city according to the plan of Sasaki Associates Inc. includes 6 important centers, City People's Committee

Ho Chi Minh City is still developing in the direction of "oil slicks".

According to HoREA's latest report, in 2020, the market will basically keep stable development, not be frozen, nor "bubble", but continue to suffer from a shortage of project and supply sources. Housing products, especially affordable commercial housing, low-priced commercial housing and social housing, affect the assurance of social security in housing for the majority of low-income people. middle-income, low-income urban, civil servants, armed forces officers, workers and immigrants. At the same time, it is worrisome about signs of oversupply in the high-end residential segment, because the proportion of secondary investors in this segment accounts for a very high proportion, around 60%.

In 2020, the average housing area of the city is 20.63 m2/person, although achieving the set target, it is much lower than the average housing area of the whole country, 24 m2/person.

HoREA said that the real estate market in Ho Chi Minh City still has a lot of room for development.

The Association found that the main driving force in housing development in the city for many years and now still belongs to the private sector, households building their own houses, accounting for 58.52%. While housing development by project has been on an increasing trend in recent years, the scale is still lower, accounting for only 41.48% in 2020.

The above housing development results show that the urban development trend in Ho Chi Minh City is still in the form of "oil slicks" and low-rise buildings, which have not met the goals and requirements of urbanization and development. urban development. The principle of “economical, effective use of land and environmental protection has not yet been ensured; Many satellite towns with concentrated population density have not yet been formed.

With the current situation, it will be difficult to connect infrastructure, especially to connect the transport system with large capacity such as metro, monorail, bus... because the State cannot have enough financial resources to invest, if The city continues to develop in the current "oil slick" pattern, with low-rise buildings, as well as difficult to effectively implement the city's population redeployment.

From the fact that the proportion of low-rise housing is very large (there are some areas of shacks, houses on and along the canals, old apartment buildings) and with the housing area per capita lower than the residential area Per capita of the whole country, it can be said that the development potential of the real estate market in Ho Chi Minh City is still very large, with a very high total housing demand in the immediate future and also in the medium and long term.

According to the Association's research, in fact, the high-end housing segment may account for about 70%, overwhelming the real estate market in 2020; Mid-end housing segment accounts for about 25% of total housing.

Worryingly, the affordable housing segment has only 163 houses, accounting for only 1% of the total number of houses mobilized in 2020. This is a clear indication of the "disparity" of products in the real estate market. real estate, deviating to the high-end housing segment. While there is a shortage of affordable commercial housing products, low-priced commercial housing leads to the development of the real estate market that lacks stability and sustainability.

HoREA forecasts that 2021 is the first year of the term, also the first year of the 2021-2025 plan, which will certainly create a very strong impulse to promote socio-economic development, including the real estate market.

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