Ho Chi Minh City has announced a decision on housing development from now to 2020.
Accordingly, from now to 2020, the central and urban districts in Ho Chi Minh City are not allowed to develop new projects. Urban districts such as districts 4, 5, 6, 8, 10, 11, Go Vap, Binh Thanh, Phu Nhuan, Tan Phu and Tan Binh will focus on finalizing unfinished projects and restricting the development of projects. new housing project.
For suburban districts such as 2, 7, 9, 12, Thu Duc, Binh Tan, the city requested completion of unfinished projects. The new projects on housing, high-rise apartment buildings in the public transport axis (Metro lines) are allowed to develop.
The remaining areas such as Nha Be, Can Gio, Hoc Mon, Binh Chanh, Cu Chi and Ho Chi Minh City require completion of ongoing projects. Deferred projects will be reviewed for revocation. In areas where there are no plans to invest in the construction of corresponding technical infrastructure, the city does not plan to develop new housing projects. However, with community-based projects such as social housing, the city government has paid special attention to development. The focus is on the coastal areas.
According to Mr Châu – chairman of the HCMC Real Estate Association, the overloaded urban infrastructure is the main reason for limiting the development of new projects in the central and inner city areas. Massive urban development has resulted in congestion, overloading and infrastructure degradation.
Mr Chau said that the new policy will help to control and regulate the real estate market. However, this also means scarcity of new housing products. That could indirectly push home prices up in the near future.
Mr Tran Hien Phuong – General Director of Sea Real Estate Company said that 8-12 months when the old supply will be sold out, the products are now redundant will be absorbed. The market will be in a shortage of new housing products and this is the time when house prices can be pushed up. And then, the new product allocation map will be moved to the peripheral locations. For example, Long An, Dong Nai, Vung Tau and Binh Duong are in the process of developing new projects. At the same time, land prices, housing prices are softer than Ho Chi Minh city.