 |
Social housing in HCMC is not blooming due to legal issues |
Deputy Director Huynh Thanh Khiet stressed that even social housing cannot have a price of under VND25million/m2 (US$1,047) because the input costs rapidly increase while the available land fund is scarcer day by day. To make the matter worse are restrictions on loan duration and limit for social housing buyers.
Some real estate market research firms voiced that the biggest obstacle to the housing market in HCMC is legal-related issues. Observing the Government’s directions, lately, HCMC has strived to address legal problems in real estate projects.
However, as the land and construction laws are still inadequate and overlapping, the effects of this effort are not as expected. Prolonged time to complete necessary administrative procedures has led to more expenses, which in turn keep apartment prices unacceptably high.
For more people to afford a house in HCMC, it is necessary for state management units and real estate project developers as well as stakeholders to cooperate more closely so that more apartment supplies can be offered at a more reasonable price.
