File photo of a housing project in HCMC’s District 2. The first six months of 2019 saw 24 housing projects being approved to proceed with the sale of a total of 7,310 apartments, which will be built in the future, down 24% year-on-year .(Photo: Le Anh)
Of the total, the number of projected high-end apartments fell 43.8% year-on-year to 2,220, whereas the number of affordable units was cut to 1,240 from the 1,910 recorded in the same period last year.
HoREA said that in the first half of 2019, the city saw the HCMC Department of Construction propose the municipal government allow investors to put up for sale only three new commercial housing projects, covering a total of more than two hectares of land and 924 apartments, marking a drop of 16 projects, or 84.2%, year-on-year.
The department also proposed the HCMC government greenlight the investment plan for 10 commercial housing projects, tumbling 82.2%, or 46 projects, year-on-year.
The reduction in housing supply on the HCMC property market is expected to affect the city’s budget revenue, according to HoREA. In 2018, budget revenue from land amounted to VND22.6 trillion, making up 9.32% of the total revenue. Compared with 2017, the figure dropped by VND4.5 trillion, or 16.8%.
The city’s budget revenue failed to achieve 50% of its target in the first six months of the year. Meanwhile, in the first five months, revenue plummeted by 60% year-on-year.
The association has voiced concern over the plunge in the supply of homes in the city, a representative of HoREA said, adding that property firms are facing multiple legal risks and challenges, including unaccepted proposals for a detailed plan of scale 1/500, complicated administrative procedures and improper methods of calculating land use fees.
In addition, the city alone has over 30 housing projects under review, resulting in the drop in the supply of homes.
HoREA proposed the municipal government remove obstacles as soon as possible to further develop the real estate market.
Also, the association proposed the competent agencies promptly issue their conclusions on projects under review and inspection so that investors can continue work on these projects to add homes to the supply source and meet the rising demand for houses on the city’s real estate market.
