Ho Chi Minh City is likely to need one million more affordable homes over the next 10 years, according to a real estate expert.
“Saigon’s shortage of affordable homes, social housing and low-cost rentals is expected to continue over the next 10 years when demand could grow to one million homes,” said Le Hoang Chau, chairman of Ho Chi Minh City’s Real Estate Association.
This shortage is not expected to subside in the near term with the World Bank forecasting the city’s population could reach 10 million by 2020 from 8.4 million currently.
Without citing statistics on the number of homes built annually, Chau emphasized the need for low-to-middle income properties based on the population growth rate.
About 500,000 families are currently unable to afford their own homes, and many currently share with parents or relatives.
Meanwhile, 81,000 families will need cheap houses over the next four years, the local media cited a survey by the city’s construction department and Institute for Development Studies as saying.
Migrants from other provinces who move to the city for work are the main contributors to Ho Chi Minh City’s population growth.
The southern commercial hub is now home to 3 million migrants.
According to some estimates, up to 70.6% of the 402,000 workers in the industrial parks and export processing zones on the outskirts of Ho Chi Minh City are in need of affordable housing.
The city is also faced with a serious shortage of affordable rental housing ranging from VND1 million (US$44) to VND3 million (US$132) per month, Chau said.