As for the development of commercial housing projects, the department has asked for the approval of the People’s Committee of Ho Chi Minh City for 12 commercial real estate projects, down 59 projects compared to that in 2018, of which there are four new and seven adjusted projects and a commercial housing project with residential land use rights. In addition, the number of construction permits issued in 2019 also dropped sharply by 2,068 construction permits, compared to the previous year.
This year, the department plans to develop an additional 8 million square meters of residential floor area, increasing total floor area in the city to 190.19 million square meters and the average residential area is 20.6 square meters per person; start construction and build ten apartment buildings; demolish 12 badly damaged apartment buildings and complete the relocation of 550 households of nine grade-D-damaged apartment buildings.
Recently, the Ho Chi Minh City Real Estate Association has also asked the municipal People’s Committee to resolve difficulties soon to help the real estate market to develop sustainably. Accordingly, the committee should soon review and resolve problems under the city’s authority, especially the process and procedures for investment in the construction of housing projects, this will help the city’s real estate market to have opportunities to recover and grow again. The city’s leaders should meet real estate enterprises quarterly to timely resolve difficulties and problems and direct the real estate market to develop steadily and healthily.
According to experts’ forecast, with the help to resolve difficulties and problems of the central and municipal authorities, the real estate market will possibly recover and post growth again as of the third quarter of this year with better transparency, fairness and healthiness than before. This year, there is little risk of a real estate bubble but there might be a hike in prices in some places where there is planning for urban development and transport development. In the first six months of this year, real estate enterprises might continue to face difficulties and challenges. The market segment for one-to-two-bedroom commercial apartments with an approximate price of VND2 billion per unit continues to keep the leading role in the real estate market. In addition, the supply of social housing projects will increase this year.