In an official submission sent to the Prime Minister and relevant ministries, HoREA proposed establishing a legal framework for commercial housing priced within reach of middle- and low-income earners. The move aims to inject fresh momentum into resolving the housing crisis for working- and middle-class households.

HoREA highlighted a persistent decline in commercial housing supply, particularly the total vanishing of the affordable segment, alongside a growing dominance of high-end developments that has exacerbated the supply-demand imbalance.

According to HoREA figures, commercial housing project approvals and supply have nosedived continuously since 2018. From 92 projects comprising 42,991 units in 2017, figures slipped to 77 projects (28,316 units) in 2018, 42 projects (23,046 units) in 2019, 31 projects (16,895 units) in 2020, 20 projects (14,443 units) in 2021, 25 projects (12,147 units) in 2022, 19 projects (17,753 units) in 2023, and just six projects yielding 3,845 units in 2024.

The share of affordable commercial units has collapsed over the past six years. In 2020, merely 163 affordable commercial flats were brought to market—representing a paltry 1% of total commercial inventory. Between 2021 and 2024, not a single affordable commercial unit reached the market.

By contrast, premium commercial housing projects surged between 2019 and 2023, capturing roughly 70% of total market supply. In central Ho Chi Minh City, the luxury segment accounted for 100% of the residential property market.

To tackle the crunch, HoREA argues that codifying affordable commercial housing will establish a statutory framework to incentivise private developers while easing the substantial pressure on state-led social housing programmes. The initiative targets middle- and low-income buyers ineligible for social housing, alongside genuine owner-occupiers seeking primary residences.

This association called for a bespoke regulatory regime backed by targeted relief measures:

First, target beneficiaries: broaden to domestic low- and middle-income individuals as well as qualifying organisations.

Second, land allocation: Local authorities are to proactively designate land banks sourced from commercial housing plots, social housing land, or appropriately zoned parcels.

Third, streamlined approvals: the introduction of a fast-track "green lane" process to compress development timelines, alongside flexible local planning caps to boost the supply of compact and medium-sized units.

Fourth, pricing mechanisms: Rather than capping developer profit margins, the State should establish regional price ceilings. This would allow developers to autonomously evaluate cost efficiencies and decide on participation based on commercial viability. Buyers would also gain access to preferential mortgage rates from credit institutions.