The Ho Chi Minh City Real Estate Association (HoREA) has proposed allowing the Ministry of National Defense and the Ministry of Public Security to approve eligible buyers for pilot social housing projects designated for military and police personnel, instead of the Department of Construction.

Boosting social housing development

HoREA recently submitted recommendations to the Prime Minister and the Ministry of Construction, outlining solutions to address challenges and accelerate the development of social housing (NOXH).

According to Le Hoang Chau, Chairman of HoREA, Vietnam’s real estate market—particularly in Ho Chi Minh City—has emerged from its most difficult phase and is now transitioning into a recovery and growth period in 2024.

Despite this progress, the market remains unstable due to a shortage of housing supply. A concerning trend since 2020 is the dominance of high-end housing, which has driven up prices and made homeownership unaffordable for the majority.

The supply of affordable housing, including NOXH and commercial homes priced around 3 billion VND ($120,000), remains severely limited.

Chau forecasts that while challenges persist, 2024 will be a crucial year for the real estate market to establish a foundation for sustainable and balanced growth.

A plan for one million social housing units

To achieve the goal of building at least one million social housing units between 2021 and 2030, HoREA has put forward ten proposals.

Chau cited Directive No. 34-CT/TW, issued by the Secretariat on May 24, 2024, which emphasizes the need for special policies to develop social housing for workers and armed forces personnel.

Additionally, Resolution No. 171 of the National Assembly has already approved the prioritization of the Ministry of National Defense and the Ministry of Public Security for pilot projects that provide housing for military and police officers.

To align with the unique requirements of the armed forces, HoREA suggests that the Ministry of Natural Resources and Environment propose an amendment allowing the Ministry of National Defense and the Ministry of Public Security to directly assign enterprises within their sectors - or other economic entities - to develop social housing projects.

These ministries should also be granted authority to phase investment plans and implement projects based on available resources and the evolving housing needs of their personnel.

Regarding the proposal to let these ministries, rather than the Department of Construction, determine the eligibility of buyers and tenants, Chau argues that this approach better suits the operational structure of the armed forces and would streamline the process.

Anh Phuong