Proposal for Ho Chi Minh City to set price ceiling for affordable commercial housing

HoREA proposes granting Ho Chi Minh City the authority to decide the maximum selling and renting prices for affordable commercial housing in order to boost the supply of this segment.

In its comments on the draft Special Urban Law, the Ho Chi Minh City Real Estate Association (HoREA) recommended adding authority for the Ho Chi Minh City People’s Committee to regulate the maximum selling and renting prices (price ceiling) for commercial housing that fits the affordability of middle- and low-income earners in urban areas.

Currently, the law does not have specific regulations for commercial housing with affordable pricing (or affordable housing), nor does it have a mechanism to determine the maximum selling or renting price for this segment.

However, in previous recommendations regarding the pilot mechanism for developing affordable commercial housing for middle-income groups, HoREA suggested that in urban areas, single individuals with an income of about 21-30 million VND per month and households with 40-50 million VND per month are considered middle-income groups. The apartment price suitable for this income group would range from 30-70 million VND per square meter.

The association also stated that current laws already authorize provincial-level People’s Committees to determine the rental prices of social housing in their localities. Therefore, a similar mechanism could be applied to the affordable commercial housing segment to create a legal framework for developing this type of housing.

According to the proposal, businesses voluntarily investing in affordable commercial housing projects can still actively determine the selling and rental prices, but they must not exceed the price ceiling issued by the Ho Chi Minh City People’s Committee. In return, these projects will enjoy preferential mechanisms and support in accordance with the Special Urban Law.

HoREA also proposed adding the category of commercial housing affordable for middle- and low-income earners into the scope of specific mechanisms and policies that the Ho Chi Minh City People’s Council is authorized to issue, including investment, construction, tax, credit, and preferential development support policies.

Real estate in Thu Thiem urban area, May 2026. Photo: Quynh Tran

In addition, the association proposed expanding the authority to allow the Ho Chi Minh City People’s Committee to issue specific investment and construction procedures for this segment. According to HoREA, current regulations exclude all commercial housing from special mechanisms, leaving the city without tools to promote the development of affordable commercial housing. Adding this regulation will help shorten investment procedures, encourage business participation, and increase supply.

Mr. Le Hoang Chau, Chairman of HoREA, said that the above proposals aim to concretize the development orientation of the affordable housing segment and rapidly develop the affordable rental housing market in line with the state’s future direction for social and public housing development.

The proposal was made in the context of housing prices in Ho Chi Minh City continuously staying high, while the supply of affordable housing is increasingly scarce. According to many experts, the establishment of a commercial housing segment with controlled prices along with preferential policies could contribute to expanding supply and increasing housing access for urban residents.

Phuong Uyen