How can Ho Chi Minh City quickly build 97,000 rental homes?

Ho Chi Minh City faces a significant challenge in developing 97,000 rental housing units, a goal that experts acknowledge will require substantial time, with the first units potentially available in 2-3 years and full completion taking 5-7 years.

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Building nearly 100,000 rental housing units requires a considerable amount of time, with the first units appearing in 2-3 years and completion taking 5-7 years.

Dr. Pham Thai Son, a lecturer at Vietnam-Germany University, emphasizes the need for government support to make rental housing projects viable for investors. These projects typically have a 15-25 year payback period, carrying risks from operating costs, interest rates, and land use fees. If rental prices are too high, demand will suffer; if too low, the return on investment will be severely delayed.

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Rental housing projects take 15-25 years to recoup investment, posing many risks (especially in operations) and other factors like bank interest rates, land use fees...

To facilitate development, authorities must address several key areas. This includes designating priority zones for rental housing, ensuring these areas have good public transport links and are near employment centers and educational institutions. Favorable land use policies and a legal framework for accessing long-term, low-interest capital are also essential. Streamlining land, investment, and construction procedures is critical.

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Authorities need to focus on solving the following groups of issues.

Furthermore, clear regulations are needed for rental housing operations, covering minimum living standards, quality maintenance, and transparent, stable rental pricing. Standardized contracts are necessary to protect tenants' rights, which are often overlooked in current informal arrangements. The development of this sector presents an opportunity to establish a professional rental market involving the state, businesses, and specialized management organizations.

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Regarding land, it is necessary to plan priority areas for rental housing development.