HCM-based real estate businesses show attention in social housing, serviced apartment for rent in hcmc

Why businesses have less desire for social housing development is made of limited land resource, excessive investment costs but minimal profit and lack of useful supporting policies from metropolis authorities.

Le Hoang Chau - Chairman of the Ho Chi Minh Real Estate Organization (HoREA) said the existing public housing projects mainly derived from 2009 to 2014, as soon as the real estate market was frozen and developers changed commercial property projects to social people.

The truth that most social housing tasks, serviced apartment in HCMC have had poor prestige

tends to make property companies not want to produce this type or kind of property.

Recently, structure of these projects has been started off. In May 2016, HCM government approved 2 fresh social projects including: condo project CC1, developed by Development No . 1 Co. Limited on Nguyen Van Muck Street (Go Vap District) and a residential-commercial complex, developed by Phuc Phuc Yen Expenditure Co., Ltd in Brown Thoi Nhat Ward (District 12).

According to Nguyen Nam Hien - General Director of Hung Thinh Real estate investment Company, why businesses have less interest in social housing development contains limited land resource, high expense costs but low revenue and lack of effective assisting policies from city professionals.

A representative of Himlam Territory, which is the developer of affordable housing project inside Phu Dong, said, although the price of apartment in the project is only VND1 billion per unit, this can be a commercial housing project still, not a societal one.

He said: "We lower price of our apartment task just because its location is definitely far away from the city middle. However , it’s still purchased as a commercial housing task. Developing a social housing undertaking may harm our reputable brand. "

The fact that most social housing projects in HCMC have had bad esteem makes property companies not need to develop this kind of housing.

Aside from, due to different opinions among ministries and agencies, the implementation of governmental policies for public housing under the 2014 Property Law are being obstructed. According to Le Hoang Chau, this can be another reason why real estate organizations have shown low interest in public housing.