Ho Chi Minh City should have specific policies for converting resettlement houses into commercial housing and issuing pink books for each apartment.

Ho Chi Minh City has approved the proposal of the Department of Construction to convert the function of nearly 4,000 resettlement apartments in the Thu Thiem urban area into commercial housing and conduct an auction in the near future. This is considered a good step by experts, however, to make this auction effective and avoid failure like the previous three times, many other factors need to be considered.

Nearly 4,000 apartments in lots R1, R2, R3, R4, R5 have been abandoned for more than decades and have become seriously deserted. The quality of the construction has deteriorated, and there are no utilities or services. Therefore, according to experts, before auctioning, there needs to be a solution to invest in utilities, operations, and repairs. In addition, converting commercial housing will create conditions for more effective capital recovery through auctioning each apartment. The auction must comply with legal regulations and not cause damage or loss of public assets.

Mr. Su Ngoc Khuong – Investment Director of Savills Vietnam said: “Breaking it down, it is enough for the ability and financial capacity of investors. If we are too rigid, I think that investors who buy back or renovate for resale will not achieve a profit margin, this is something we need to consider carefully.”

Although the area of ​​these apartments is suitable for commercial housing, calculating the price is a difficult problem. Because the original price of each square meter of resettlement alone is up to 27 million VND, not including compensation, land costs, and other costs according to loan interest.

Mr. Huynh Phuoc Nghia – Economic expert commented: “Many banks are offering a package for a group of people with a low interest rate for a long-term incentive. Will these units participate or not? All of this must be implemented closely”.

Many experts also believe that it is necessary to calculate a clear legal corridor, build an effective sales plan, with the participation of businesses and banks. At the same time, there must be a state representative responsible for managing, operating and renovating the project to create trust for buyers.

Mr. Huynh Phuoc Nghia – Economic expert commented: “Pricing for sale on such a large scale, in which the steps involve public auction or through a service, involves a multi-step coordination solution”.

To solve the above problem, Ho Chi Minh City once had a policy of converting resettlement apartments into commercial apartments, but also encountered problems with regulations. Therefore, Ho Chi Minh City should have a specific policy for converting resettlement houses into commercial housing and issuing pink books for each apartment. At that time, the investor has won the auction, plus the pink books are available, so the market absorption will be better. From there, it will help the number of these products to be easily accessible to home buyers in need and avoid waste.