Over 1.6 billion people globally lack access to adequate housing. Against the backdrop of rapid urbanisation and housing prices outpacing income growth, experts believe it is time to reposition housing as a fundamental component of national infrastructure, on par with transport or energy, to enable sustainable and inclusive urban development.

Global and Regional Pressures

With more than two-thirds of the world’s population projected to reside in urban areas by 2050, cities are under mounting pressure to ensure the quantity and sustainability of housing supply. 

The Savills’ Impacts 2025 report highlights that approximately 1.6 billion people currently lack access to adequate housing. This shortage is driven not only by the increasing migration into urban areas but also by the continued rise of housing prices well beyond income levels. An IMF study of 200 global cities found that 90% fall into the “unaffordable” category, where the average home price exceeds three times the average annual household income. Meanwhile, according to UN-Habitat, the world would need to build approximately 96,000 affordable housing units every day until 2030 to close the existing supply gap.

Viet Nam is not immune to this pressure. In Q1 2025, Ho Chi Minh City(HCMC) recorded just 800 new condominium units launched – a 70% drop compared to the previous quarter. Entry-level housing (below VND 50 million/m²) accounted for only 13% of the total supply, concentrated in a single project in Binh Tan District. Inventory absorption stood at just 23%, indicating that buyers remain cautious and continue to wait for more suitable products. In Ha Noi, 7,940 new units were launched, a decrease of 39% quarter-on-quarter. Despite a year-on-year increase, sales volume declined by 41%, highlighting an apparent supply-demand mismatch.

According to Giang Huynh, Director of Research and S22M, Savills Viet Nam: “The key legal barrier constraining housing supply growth lies in prolonged project approval procedures and regulatory obstacles in implementing existing projects. Over the next 6 to 12 months, the priority must be given to resolving issues related to land use fee determination and planning approval processes, enabling developers to accelerate project execution and bring new products to market.”

A New Perspective: Housing as National Infrastructure

By 2050, the world’s ten most populous cities will collectively house nearly 374 million people. Moreover, most of these cities are projected to continue experiencing significant population growth. This urbanisation trend will drive rapid increases in demand for sustainable housing, requiring governments and investors alike to seek large-scale, long-term solutions to ensure supply security.

In this context, increased capital mobilisation from the public and private sectors plays a critical role in funding new housing projects and supporting sustainable urban development. However, despite the sector’s appeal, longstanding barriers, including fragmented planning, inconsistent policy, and fluctuating legal and political environments, continue to hinder the progress of large-scale developments.

The most recent housing projects are structured around relatively short (five-year) investment cycles. In contrast, institutional investors typically prefer to allocate capital to sectors with stable cash flows over twenty years or longer. This disparity explains why long-term capital, essential for addressing the affordable housing shortage, remains largely untapped.

One potential approach is to reposition housing as a form of national infrastructure. When treated with the same strategic importance as transport or energy, the housing sector could become more attractive to long-term investors. This shift in perspective may also influence policymaking, leading to stable regulatory frameworks, financial incentives, and government-backed support – all crucial enablers for sustainable investment.

Several countries have demonstrated the effectiveness of this approach. For example, Singapore recognises housing as a core component of national infrastructure. Over 80% of the population lives in public housing (HDB) developed by the government, designed with integrated public amenities and transport access. Between 2025 and 2027, Singapore’s government aims to build 50,000 HDB flats annually.

Conversely, cities such as New York and London, despite their targets of constructing tens of thousands of new homes each year, are achieving only half of those goals due to high construction costs, complex regulations, and limited access to capital. In Paris, authorities are exploring alternative strategies, including repurposing old buildings and imposing vacancy taxes to bring unused properties back to market.

In Viet Nam, a notable development is the approval of Thu Duc City’s master plan in January 2025, focused on Transit-Oriented Development (TOD) – prioritising high-density residential clusters around public transport hubs. Giang Huynh comments: “This is a strategic direction, optimising land around metro lines to develop integrated urban areas. However, for the TOD model to succeed and rapidly expand housing supply, the government must accelerate metro line construction and establish a legal and policy framework attractive enough to engage investors.”

At the same time, efforts to resolve legal bottlenecks, expedite land title issuance, construction permits, and sales contract processing are providing a solid foundation for Viet Nam’s housing market to recover steadily from the second half of 2025 onwards. Giang notes on market outlook, “HCMC’s housing supply in the second half of 2025 will remain constrained due to a lack of new legally ready projects. In contrast, Ha Noi may see an increase in supply, with several projects ready for launch. Real demand in both remains high, meaning suitable products are likely to be absorbed quickly upon release.”

Addressing the housing challenge requires a shift in development thinking, from short-term approaches to long-term strategies. By recognising housing as a core element of national infrastructure, foundational solutions can be implemented more effectively, helping to shape a more integrated and sustainable urban future.