PROPOSAL TO AUTHORIZE HO CHI MINH CITY TO SET PRICE CAPS FOR AFFORDABLE COMMERCIAL HOUSING

Proposal to Establish a Housing Price Cap Mechanism

One of the key recommendations is to authorize the Ho Chi Minh City People's Committee to determine the maximum selling and rental prices for affordable commercial housing.

According to HoREA, introducing a price cap would provide a legal framework for developing commercial housing projects that primarily serve genuine housing demand, while making homeownership more accessible to a broader segment of the population.

At present, Vietnamese law does not provide a specific legal definition for affordable commercial housing, nor does it establish a mechanism for determining maximum prices for this housing category.

Developers Would Retain Pricing Flexibility

Under the proposed framework, project developers would continue to have the flexibility to formulate their own pricing strategies based on their business plans. However, the selling or rental prices would be required to remain within the maximum limits established by the Ho Chi Minh City People's Committee.

In return, projects within this housing segment may become eligible for preferential policies and incentives, provided they satisfy the requirements set forth under the future Special Urban Law.

Recommendation for Dedicated Support Mechanisms

HoREA also recommends including affordable commercial housing among the special policy categories applicable to Ho Chi Minh City.

If approved, the city could establish dedicated mechanisms covering areas such as:

• Investment policies.
• Tax and credit incentives.
• Construction and administrative procedures.
• Other support measures and incentives for project developers.

According to the proposal, expanding the city's regulatory authority would enable local authorities to introduce policies that better reflect market conditions and local housing needs.

Expected to Increase Housing Supply

Against the backdrop of persistently high housing prices in Ho Chi Minh City and a limited supply of affordable homes, the proposed policy framework is expected to encourage greater private-sector participation in developing affordable commercial housing projects.

Should supportive incentives and more streamlined investment procedures be introduced, the supply of commercial housing targeting middle- and low-income households could improve in the coming years, contributing to a more balanced and diversified housing market.

Important Note

The above measures are currently proposals submitted during the consultation process for the draft Special Urban Law and have not yet become official regulations.

Any provisions regarding housing price caps, preferential policies, or the expanded authority of Ho Chi Minh City will only take effect after they have been reviewed, approved, and formally enacted by the competent authorities in accordance with applicable legislative procedures.

Reference Sources: Draft Special Urban Law; proposals submitted by the Ho Chi Minh City Real Estate Association (HoREA).