HCM City (VNS/VNA) - There was not a singlesocial housing project in Ho Chi Minh City this year, and with support fundsfor them being limited, there is a fear the situation couldcontinue, experts said.

The city has a population of around 13 million includingabout 3 million migrants, according to the HCM City Real Estate Association(HoREA). 

Housing development is of paramount importance as the citywould add one million people to its population every five years in 2021-2035,said Vo Van Hoan, Vice Chairman of the HCM City People’s Committee.

Le Hoang Chau, chairman of HoREA, said: “The city’s biggestand most difficult problem is to address the housing needs of a large number oflow- and middle-income people, including Government workers, students, workers,and migrants, to ensure social welfare and sustainable development.”

The city has nearly 476,000 families, or 25 percent of thetotal number, that do not own homes and live with relatives. Of them, more than20,000 live along and near canals and 35,000 in old apartment buildings thatneed to be renovated.

Next year the city is expected to have 20,000 units of socialhousing, a very small number compared with the demand.

The reason is that social housing brings little profit todevelopers, meaning they are reluctant to undertake them unless there aresubsidies and support policies from the government.

The municipal People’s Committee recently announced 10billion VND (430,000 USD) has been earmarked for loans to buy social housingthis year in 12 districts. But, the amount is very modest, expertssaid.

People are finding it very difficult to find apartments forless than 2 billion VND (85,500 USD) in the city.

Prices are up 5-10 percent on average from just six monthsago as a quickly rising population and shortage of new supply puts increasingpressure on them.

Demand far outstrips supply, Chau said.

Administrative procedures take too much time whiletransportation to the city’s central areas is not good, meaning people do notwant to stay too far from them, he said.

Hoan said to address this problem the city administrationplans to call on the private sector to invest in low-income housing.

It has also instructed the Department of Construction toreview and amend policies to create favourable conditions for enterprises toinvest in such housing and for people to be able to buy them.

Chau said HoREA has called for upgrading trafficinfrastructure to link the five suburban districts of Cu Chi, Can Gio, Binh Chanh,Hoc Mon, and Nha Be with the city’s central areas so that they become moreattractive as residential areas./.