HCMC DECENTRALIZES AUTHORITY TO SET PRICES FOR RESETTLEMENT HOUSING: REMOVING A BOTTLENECK IN SITE CLEARANCE AND UNLOCKING PROJECT PROGRESS

1. Why is a decision on “resettlement housing prices” significant to the property market?

In urban development, land clearance is one of the key stages directly affecting project implementation timelines. When resettlement arrangements have not been finalized, land cannot be fully handed over, potentially prolonging the investment preparation period and increasing a project’s financial costs.

The key change this time is the decentralization of authority to determine resettlement housing prices to the grassroots level, reducing reliance on multiple layers of administrative procedures.

Key Changes

The notable point is that decision-making authority is placed at the level directly responsible for implementing compensation, assistance and resettlement work. This could shorten the gap between administrative decisions and the practical needs of individual projects.

2. One Policy Change – Three Key Impacts

1. An additional “lever” to accelerate land clearance

When resettlement housing prices are determined promptly, affected residents have a clearer basis for balancing the compensation they receive against the cost of purchasing resettlement housing.

For large-scale land acquisition projects, reducing delays at this stage could have a direct impact on the timeline for handing over cleared land.

2. Greater potential to “activate” the resettlement housing stock

Ho Chi Minh City is facing the challenge of putting a large amount of underutilized resettlement housing to more effective use.

Notably, more than 3,700 apartments in the Thu Thiem New Urban Area have previously been reported as remaining vacant for an extended period. Completing the mechanism for determining selling prices is one of the necessary conditions for addressing such stagnant housing stocks and putting public assets to more effective use.

Areas such as Binh Khanh and Vinh Loc B are also among the resettlement housing stocks that require further review and appropriate utilization.

3. Greater certainty for developers in managing project timelines and costs

For real estate developers and infrastructure investors, every month of delay in land clearance can affect project schedules, cash flows and financing costs.

Therefore, if the new mechanism helps shorten the time required to process resettlement arrangements, its greatest value for businesses lies in enabling greater predictability in project development plans, rather than merely representing a change in administrative procedures.

3. What Should Real Estate Developers Take Away from the New Policy?

The potential impact can be illustrated as follows:

Faster determination of resettlement housing prices
↓
Completion of resettlement arrangements
↓
Greater potential for land handover
↓
Faster project implementation
↓
Reduced delays in cash flows and financing costs

This is particularly relevant to infrastructure projects, urban development projects, PPP projects, and projects involving large-scale land clearance, where improving one link in the chain can generate a broader positive impact on the overall investment timeline.

4. But Does Decentralization Mean the Bottleneck Will Be “Solved Immediately”?

Not necessarily.

Although decision-making authority has been delegated to the commune- and ward-level authorities, requirements concerning the legal basis, valuation methodology and accountability remain in place.

This is precisely what stakeholders should monitor during implementation.

5. Three Issues Businesses and the Market Should Watch

Valuation capacity at the grassroots level: Commune- and ward-level People’s Committees will be responsible for reviewing legal documents and housing price determination dossiers and ensuring that all relevant costs are properly and fully accounted for in accordance with regulations. Where documentation is incomplete or there are unresolved issues concerning construction and investment costs, land-related financial obligations, or other relevant expenses, the commune- or ward-level People’s Committee will coordinate with the Department of Construction, Department of Finance, Department of Agriculture and Environment, and the relevant housing management authority to clarify the issues before determining the selling price.

Inter-locality coordination mechanisms: Where resettlement housing is located in another locality, the process still requires written opinions from the locality where the housing is located and the entity managing the housing stock. If inter-locality coordination is not handled efficiently, this could become a new bottleneck.

The ability to deal with stagnant housing stocks: Decentralizing price-setting authority is an important condition, but bringing vacant apartments into effective use will also depend on the current condition of the assets, the proposed utilization plan, and other relevant procedures.

 6. From Resettlement Housing to the Broader Urban Development Agenda

The significance of the policy does not lie solely in the selling price of an individual resettlement apartment, but in its potential impact on the entire project development chain.

If land clearance can be handled more efficiently, infrastructure projects such as Ring Road 2, Ring Road 3, Ring Road 4, urban railway lines, and urban redevelopment and upgrading projects will have better conditions for accelerating implementation.

As infrastructure is completed, it can also provide a stronger foundation for the development of surrounding urban areas, commercial projects and the broader real estate ecosystem.

 2026–2030 Outlook

7. The Real Measure of Success: Not “Delegating Authority,” but “Making Decisions Quickly and Correctly”

Ho Chi Minh City’s authorization of commune-, ward- and special administrative zone-level People’s Committees to determine the selling prices of State-funded resettlement housing marks a notable change in the way policy is implemented at the grassroots level.

The effectiveness of this mechanism will be reflected in its ability to shorten processing times, improve the utilization of resettlement housing stocks, and support land-clearance progress during the 2026–2030 period.

However, the true effectiveness of the policy will become clearer during implementation: Will the time required to determine prices actually be shortened? Will stagnant housing stocks be put to use? Will land be handed over more quickly? And will projects genuinely experience fewer implementation delays?

With the mechanism scheduled to remain in effect through 2030, it will be an important policy development to watch for the real estate market, infrastructure investment, and the evolution of Ho Chi Minh City’s urban landscape in the years ahead.