Ho Chi Minh City gains powers to convert housing under urban law
The city’s People’s Council adopted 24 resolutions in the law’s first month, covering planning, infrastructure, key projects and social welfare policies.
Ho Chi Minh City can switch housing between commercial, social and resettlement uses under the Urban Development Law, giving it new options for dealing with vacant apartments. The law also permits changes to the use of public housing managed by the city.
The housing powers come as resettlement developments remain underused. Between 2013 and 2025, the city constructed 12,500 apartments for about 16,000 households displaced by the Thu Thiem New Urban Area project in An Khanh Ward. Most residents instead opted for cash compensation and arranged their own accommodation.
Since 2018, the city has repeatedly prepared auction plans to sell the apartments and change their status to commercial housing. Investor interest has been constrained by the size of the auction packages, high starting prices, legal barriers to conversion and financial pressures.
Dr Pham Viet Thuan, Director of the Ho Chi Minh City Institute of Natural Resources and Environmental Economics, urged a review of completed resettlement projects no longer needed for that purpose. He said assessments should establish housing demand, property values and legal status before conversion options are selected.
Beyond housing, the law allows controlled regulatory sandboxes lasting up to five years and establishes a planning framework for spaces above and below ground. During its first month in force, the city People’s Council passed 24 resolutions covering planning, infrastructure, major projects and policies concerning welfare and living standards.
The city People’s Committee said resolutions and decisions must identify responsible agencies and individuals, deadlines, resources and outcome assessment criteria. The city is initially testing the mechanisms across sectors so unsuitable measures can be revised quickly.
