Compact sized apartments are causing controversy in solving HCMC’s housing needs.
It is nothing new to see unit sizes getting more smaller and smaller. In response to growing pressure on the housing market many developers build more compact units in a bid for profitability. This is spurred on by land being squeezed that pushes up prices needing more economical sized units.
This trend is common across many cities across the globe. You just have to take a look at the dizzying prices of property in Hong Kong and Tokyo that has resulted in people living in more compact homes. However this is something that has aroused concern in Ho Chi Minh City. The buzzing southern metropolis fears that this could lead to the creation of slums. Therefore the city has made a plea to the Ministry of Construction that apartments are not to be built that are less than 45 square metres.
In May of this year the Ministry of Construction announced plans to increase the supply of housing through compact living. Citing that apartments should be built of at least 25 square metres. This would help meet the demands of low income earners and also single occupiers. Figures reveal the dire need for housing in Ho Chi Minh City. According to the municipal Department of Construction there are 300,000 households that require social housing to rent. 480,000 households are not homeowners and 143,000 households are low income earners.
Vietnam is currently going through rapid change and there is a rapid urbanisation. Cities such as Ho Chi Minh City and Hanoi are drawing in vast numbers of new residents. Smaller unit sizes would help house them however there are fears that this would put added pressure on existing and future social and infrastructure services.
Limiting numbers
Currently unit sizes must be of at least 25 square metres for social housing schemes. This number rises to 45 square metres for private homes. The Ho Chi Minh City Real Estate Association sees the need for these smaller sized apartments, but feels the number of them should be limited. Capping them up to 30 percent of the total units of a building. A sensible compromise that will also ensure that buildings will not be entirely dedicated to smaller sized apartments to maintain a balance.
Additionally it will address the issue of affordability. It has been estimated that average homes are 25 times higher than average incomes. Therefore there is a real thirst for smaller properties to help many Vietnamese reach the property ladder.
It is a fine balance to addressing existing housing requirements. More compact units will certainly help, however how and where they are constructed will be huge factors to their success. Proper management should be undertaken to maintain their condition and to prevent the deterioration into slums. However the notion of smaller units leading to slums needs to be overcome. Developers cleverly optimise space and owners employ storage tactics in order to make use of compact living. Small certainly does not necessarily equal slum-like.