Affordable housing segment remains the dominant one of HCM market.
According to Ho Chi Minh Real Estate Association (HoRea), during 2016 – 2017 period, over 30,000 housing units have been added onto the city’s real estate market. Only Department of Construction has granted fundraising licenses for 57 housing projects which will be developed in the future, with a total of 29,017 units including 27,792 apartments and 1,225 low-rise houses.
In particular, there are 5,630 apartments in the premium segment, accounting for 20.3%; 16,750 apartments in the medium segment, equivalent to 60.3% and 5,412 apartments in the affordable segment, making up 21.6%. Besides, some developers like Khang Dien, Him Lam completes their new homes, then sell it to buyers, so they don’t have to register for sales through the Department of Construction.
Thus, accounting for 79.7% of market share, affordable housing segment still remains its dominant role on HCM market in 2016. However, the market still lacks of social housing and affordable commercial housing, especially affordable commercial housing for rent.
In addition, 500 delayed projects including many real estate projects in progress due to various reasons are considered the submerged part of the inventory iceberg.