HCM CITY — Thirteen organisations and property developers have pledged to build nearly 100,000 rental social housing units in HCM City in a move that aims to tackle a housing shortage that has left many workers and low-income residents priced out of the property market.

The commitments were announced at a conference on rental housing development held on Tuesday by the municipal Department of Construction.

The pledge comes as Việt Nam's largest city seeks to expand affordable housing amid rising property prices and strong demand from workers, students and migrant labourers.

Authorities estimate that nearly 974,000 people in the expanded city need to buy, rent or lease-purchase social housing, according to the HCM City Real Estate Association (HoREA).

Under its housing strategy for 2026-30, the city aims to develop 181,257 social housing units, including about 50,000 designated for rent.

Speaking at the event, Nguyễn Công Vinh, vice chairman of the municipal People's Committee, said demand for rental housing was increasing rapidly in the city, which now has a population of about 14 million following its recent administrative expansion.

He said the city was shifting its housing policy from focusing mainly on home ownership to promoting both ownership and rental housing, in line with directions from national leaders.

Authorities also plan to convert part of the city's unused resettlement housing stock and surplus public assets into rental accommodation in an effort to expand supply more quickly.

Despite a series of policy initiatives, officials acknowledge that affordable housing development has struggled to keep pace with demand.

During the 2021-25 period, the city completed just 17,902 social housing units, far short of estimated needs.

Vinh said rental housing projects continue to face challenges, including limited access to long-term financing and investment incentives that remain insufficient to attract greater private-sector participation.

The conference brought together government agencies, financial institutions, developers and industry groups to discuss solutions related to land access, financing and project implementation.

Among public-sector organisations, the HCM City Housing Development Fund pledged to develop 25,000 rental units, while the HCM City Export Processing and Industrial Zones Authority (HEPZA) and the HCM City Labour Federation each committed 10,000 units. Saigon Real Estate Corporation (RESCO) pledged 1,755 units.

Private developers also announced sizeable commitments. CT Group pledged 20,000 units, followed by Bcons with 10,000 units. Novaland committed 6,000 units, Kim Oanh Group 5,000 units and Vingroup 4,500 units. Several other developers registered smaller projects.

Taken together, the commitments total nearly 100,000 rental units, which is almost double the city's target of 50,000 rental social housing units by 2030.

Nguyễn Văn Được, chairman of the municipal People's Committee, said the city's housing market remained heavily skewed towards high-end developments despite strong demand for affordable housing.

He noted that while low- and middle-income households account for the majority of housing demand, high-end projects continue to dominate new supply, contributing to affordability pressures and market distortions.

To accelerate development, Được said the city would create a "green lane" mechanism to speed up administrative procedures for social and rental housing projects.

Authorities are also studying measures to keep rents affordable for workers and lower-income households.

Nguyễn Văn Sinh, deputy minister of Construction, urged the city to assess rental housing demand more accurately and review underutilised public assets that could be converted into rental accommodation.

He also said recommendations raised at the conference would help inform future amendments to housing and real estate legislation.

According to the Department of Construction, HCM City has earmarked about 1,740ha of land for social housing development through 2040.

The city's 2026-30 plan includes 67,000 social housing units on land developed by private investors, 30,000 units on State-managed land, 10,000 units financed through public investment, 50,000 rental units and 25,000 units reserved for members of the armed forces.

Even if those targets are met, demand is expected to remain strong, highlighting the scale of the challenge facing authorities as they seek to make housing more affordable in one of Southeast Asia's fastest-growing urban economies. — VNS