Big cities face paucity of affordable housing

By Duc Minh May 10, 2021 | 01:06 am PT

Apartment buildings in District 1, HCMC. Photo by Shutterstock/ Claudine Van Massenhove.

There is high demand for apartments priced under VND25 million ($1,086) per square meter, but supply is scant in Hanoi and HCMC.

No such project was developed in the central districts of both cities in the first quarter of this year, according to the Ministry of Construction.

The majority of new apartment projects in Hanoi and HCMC are in the mid-priced segment. Their prices in Hanoi range from VND30-40 million per square meter and are located in the districts of Ha Dong, Thanh Xuan, Cau Giay and Gia Lam.

Apartment projects of the same segment in HCMC are sold at a higher price of VND35-45 million per square meter.

High-priced apartments in the two cities are sold for VND50-90 million per square meter, with projects located in prime locations asking for VND100 million per square meter in Q1, some even hitting VND300 million per square meter, according to market research company Vietnam Report.

Minister of Construction Nguyen Thanh Nghi said at a meeting late last month that the ministry will prioritize developing affordable apartments in major cities, changing regulations to promote investment in this segment, particularly social housing.

Just 42 percent of social housing targets for the last five years has been met, with many localities failing to comply with regulations requiring 20 percent of land used for commercial projects to be earmarked for social housing.