HoREA proposes affordable commercial housing policy to fix supply imbalance

The Ho Chi Minh City Real Estate Association (HoREA) has proposed adding policies for 'affordable commercial housing' to the draft Law on Housing (amended). This initiative aims to address the severe shortage of mid-range housing for middle- and low-income urban residents who do not qualify for social housing programs.

HoREA reports a significant imbalance in the market. In Ho Chi Minh City, the proportion of affordable commercial housing dropped from 29.1% in 2017 to just 1% in 2020, with no such units recorded in the market between 2021 and 2024. Conversely, the luxury segment has grown to dominate the supply.

To encourage development, HoREA suggests that the government should not impose a maximum profit cap on developers of affordable commercial housing, provided the selling prices remain within local price ceilings. The association also advocates for the development of affordable rental housing to meet the high demand among urban workers.