HCM City to build 107.5 million sqm of housing in next 10 years

A social housing project in HCM City. VNA/VNS Photo

 HCM CITY — The largest southern city aims to build 107.5 million square metres of housing over the next 10 years, one of the highlights of the draft housing development programme for HCM City between 2021 and 2030.

The draft has been sent to the Ministry of Construction and will later be submitted to the city People’s Council for approval.

Since the city’s population between 2021 and 2025 will be about 10.25 million people, it is necessary to develop about 50 million square metres of residential space, equivalent to about 367,000 houses.

This will increase the average housing area in the city to 23.5 square metres per person by 2025.

In the following five years from 2026 to 2030, when the population increases to 11.29 million people, HCM City will build about 57.5 million square metres of houses to meet locals’ living needs and increase the average housing area to 26.5 square metres per person.

With regards to the type of housing until 2025, HCM City plans to develop about 40.7 million square metres of low-rise housing and separate houses for small households, and about 9.3 million square metres of apartments.

In the next five years, an additional 44.7 million square metres of low-rise housing and separate houses for households will be added, together with about 12.8 million square metres of high-rise apartments.

According to calculations by the HCM City Department of Construction, the city’s housing projects from 2021 to 2030 will cost VNĐ152,000 trillion.

Of this amount, capital for construction of commercial housing in the period of 2021 – 2025 will be about VNĐ2,397 trillion; capital for construction of individual houses and households will be VNĐ2,895 trillion and capital for social housing construction will be about VNĐ377 trillion.

Capital for the housing development of the city is expected to be raised from sources such as private enterprises, credit institutions, the accumulated capital of households and other sources.

Meanwhile, capital for social housing development will mainly be taken from private enterprises, preferential credits, and about 10 per cent of the city’s budget.

In the period of 2021 – 2030, HCM City is expected to spend about VNĐ12,410 billion for social housing.

Total demand for land for the housing development of the city in the next 10 years is forecast to be about 5,239 ha, of which the land demand for commercial housing construction is about 4,788 ha and construction social housing about 451 ha.

In order to build 100 million square metres of housing and meet the housing needs of the city’s residents in the next 10 years, HCM City has set out a series of key orientations.

First, housing development is associated with urban development.

It is crucial to ensure synchronous and modern urban development investment while developing a variety of housing types in terms of price, location and area.

In addition, relevant authorities should promote the development of apartment buildings, emphasise the land use coefficient around metro stations to take advantage of infrastructure and increase the proportion of rental housing to meet the needs of low-income people.

To develop diversified forms of payment such as rent, lease purchase and purchase, priority will be given to businesses participating in investment and development of rental housing and low-cost housing.

In the existing central and inner city areas, HCM City will focus on developing high-rise apartment buildings in the period of 2021 – 2030, and at the same time upgrading the infrastructure suitable to the scale of the project to ensure that there is no overcrowding to existing urban infrastructure.

Meanwhile, project-based housing will be highlighted in the inner city of District 7, District 12, Bình Tân District and Thủ Đức City.

HCM City will gradually develop infrastructure in suburban areas to create sufficient land funds for affordable housing projects with synchronous infrastructure to serve the majority of migrant workers in HCM City. VNS