Social Housing Apartment Market in Ho Chi Minh City in 2024
The social housing market in Ho Chi Minh City has remained dynamic throughout 2024, attracting significant public interest. Nevertheless, besides the positive signs, the market also faces many challenges.
The Ho Chi Minh City Department of Construction has set an ambitious target of constructing between 69,700 and 93,000 social housing units from 2021 to 2030, aligning with the City’s housing development program and the National initiative to build at least one million social housing units for low-income households and industrial workers. To achieve this goal, the city has outlined a phased approach:The period from 2021 to 2025 is projected to see the completion of 26,200 to 35,000 units.
- The period from 2021 to 2025 is projected to see the completion of 26,200 to 35,000 units;
- The subsequent five years, from 2026 to 2030, will focus on constructing an additional 43,300 to 58,000 units.
Highlights of Ho Chi Minh City’s Social Housing Market in 2024
- High Demand: The number of people registering to buy social housing continues to increase, indicating a strong demand for this type of housing.
- Limited Supply: The number of new social housing projects entering the market remains low, unable to meet actual demand.
- Slow Progress: Many social housing projects are behind schedule, affecting the supply of housing for people.
- Prices: Social housing prices have tended to increase slightly compared to the same period last year, due to the impact of many factors such as material prices, construction costs, and architectural design.
- Support Policies: The government and the city have implemented many policies to support the development of social housing, creating favorable conditions for low-income people to access housing.
The supply of social housing apartments in Ho Chi Minh City remains limited
Despite the completion of two new social housing projects in the first half of 2024, adding 610 units to the market, the overall supply remains inadequate. These projects include the Nguyen Son Social Housing Project in Binh Chanh District (242 units) and the Worker Dormitory Project in Thanh My Loi Ward, Thu Duc City (368 units). As of 2021, a total of 2,745 social housing units have been completed (according to Department of Construction statistics). Currently, there are three social housing projects and one worker dormitory project underway with a total of 2,874 units. This is a modest result compared to the planned target, accounting for only about 16% of the 2021-2025 plan.
Spotlight on Ho Chi Minh City’s Premier Social Housing Projects in 2024The social housing market in Ho Chi Minh City in 2024 has been enriched by a variety of new projects. Below are some of the most representative projects, highly regarded for their scale, quality, and progress:
- Le Thanh Tan Kien Social Housing Project:
- Location: Tan Kien Commune, Binh Chanh District
- Developer: Le Thanh Trading – Construction Co., Ltd
- Scale: 6 Blocks, 18 floors each
- Total apartments: 1,445 social housing units and 604 commercial service units
Source: Le Thanh Trading – Construction Co., Ltd
2. Nguyen Son Housing Project (EhomeS Nam Sai Gon Block C)
- Location: Binh Hung Commune, Binh Chanh District
- Developer: Nguyen Son Real Estate Joint Stock Company (under NLG)
- Scale: 1 Block, 9 floors
- Total apartments: 242 units
Source: Nam Long Group
3. Worker Dormitory Project in Thanh My Loi Ward (Thu Thiem Green House)
- Location: Thanh My Loi Ward, Thu Duc City
- Developer: Thu Thiem Group
- Scale: 1 Block A, 9 floors
- Total apartments: 368 units (phase 1)
Source: Thu Thiem Group
New Legislation Enacted in 2024 Impacting Social Housing
The year 2024 witnessed a transformative shift in Vietnam’s social housing policy, driven by the introduction of new laws and regulations. These legal reforms have broadened the scope of beneficiaries, simplified administrative processes, and attracted more investment into the market. In particular:
- The 2023 Housing Law: This landmark legislation sets the stage for future social housing policies. It provides clear definitions for social housing, eligibility criteria, and outlines the framework for investment, management, and utilization.
- Decree 100/2024/ND-CP: This decree offers detailed guidance on implementing the Housing Law, particularly in the realm of social housing. Key provisions include:
+ Expanded Eligibility: Broadening the scope of beneficiaries to include low-income individuals, veterans, and people with disabilities.
+ Affordable Pricing: Ensuring that social housing is affordable by regulating sale and rental prices
+ Streamlined Procedures: Simplifying administrative processes to facilitate access to social housing.Investment Incentives: Regulating sources of investment in social housing and providing incentives to attract investments.
Other Guiding Documents: In addition to the Housing Law and Decree 100, there are many circulars and decisions providing detailed guidance on matters related to social housing.
Major Developers Pledge Support for Social Housing
At the investment promotion conference for social housing organized by Ho Chi Minh City People’s Committee on December 6, 2024, Ho Chi Minh City officials called on leading developers to invest in 7 prime public land parcels spanning over 27 hectares. Specifically:
| No | Project | Location | Land plot area | Number of apartments |
| Investment attraction project | ||||
| 1 | Land plot in Truong Thanh Ward | Truong Thanh Ward, Thu Duc City | 9.804 m2 | 300 units |
| 2 | Plot number 6, 38ha resettlement zone | Tan Thoi Nhat Ward, District 12 | 11.836 m2 | 540 units |
| Planned investment promotion project | ||||
| 3 | Land plot at 360 Ben Van Don | Ward 1, District 4 | 7.284 m2 | 315 units |
| 4 | Land plot at 61B Street No.16 | Ward 1, District 4 | 3.784 m2 | 230 units |
| 5 | Land plot 1-1, sheet 24, Phuoc Long B Ward | Phuoc Long B Ward, Thu Duc City | 8.872 m2 | 192 units |
| 6 | Land plot 30,500m2, Long Thanh My Ward | Long Thanh My Ward, Thu Duc City | 30.500 m2 | 1.225 units |
| 7 | Land plot 20ha, Long Thanh My Ward | Long Thanh My Ward, Thu Duc City | 201.700 m2 | 1.000 units |
| Total | 273.780 m2 | 3.802 units | ||
Source: SVI Investment Department
In response to the City’s call, 21 enterprises have pledged to contribute nearly 52,200 social housing units by 2030. Nine of these enterprises have already identified specific land parcels in Districts 7, Binh Tan, Binh Chanh, and Thu Duc City for over 11,600 units. The remaining businesses have committed to finding land for the development of more than 40,500 units.
Overall, the social housing market in Ho Chi Minh City is poised for significant growth. To ensure the long-term success of these initiatives, however, close cooperation among all stakeholders is crucial.