Over 12,000 applicants vie for 755 social housing units as developer warns of fraudulent deposits

The Ly Thường Kiệt Social Housing Project in Diên Hồng Ward, Ho Chi Minh City, has come under scrutiny after Duc Mạnh Joint Stock Company sent an urgent letter to the Ho Chi Minh City People’s Committee, the Investigative Police Office, and the Department of Construction to clarify issues related to capital mobilization that allegedly violate regulations.

In the letter, the company said the project is not yet eligible for sale, has not entered the official registration phase, and that there is “absolutely no authorization” for any individuals or brokerage platforms to mediate on its behalf. The company also warned that, in practice, the market has seen self-initiated transactions that impersonate the developer.

Authorities warn of deposit losses

Authorities said there have been cases in which homebuyers lost deposits of up to 150 million VND amid these unauthorized transactions.

Faced with legal risk, Duc Mạnh Company stated it bears no responsibility for transactions submitted through third parties. The company urged residents to follow only information officially published on the Ho Chi Minh City Department of Construction’s website.

Developer tightens internal discipline

Alongside the market warning, Duc Mạnh’s leadership issued internal documents tightening staff discipline. The company forbids all employees and members of the project management board from guiding brokers, promising, or accepting deposits from customers in any form.

The company said any violations will result in termination and legal responsibility.

Cause linked to supply-demand imbalance

The company attributed the behavior of unscrupulous brokers to a large supply-demand gap for this project.

Project scale and unit allocation

The Ly Thường Kiệt residential area is built on 14,700 square meters of land and includes four towers of 25 floors.

The total number of units offered to the market is 1,254, including 229 commercial units and 1,025 social housing units. Within the social housing segment, 755 units are allocated for sale and 270 units for rent.

Demand far exceeds available supply

According to data from the Ho Chi Minh City Real Estate Association, more than 12,000 dossiers were received in the initial demand phase—16 times higher than the market’s real supply.

The removal of the residency requirement has allowed people from many localities to participate in registration, increasing pressure on limited social housing stock in major cities.

Legal progress and registration process

Regarding legal progress, the project is currently in Phase One, meaning it involves public release of basic information and registering demand to help the developer plan deployment.

The company emphasized that the process of accepting demand applications is entirely independent and has no value as a substitute for official purchase registrations. The procedure for accepting valid applications will be carried out in Phase Two.

In Phase Two, the developer must publicly report to the Department of Construction the timing of receipt of applications, the number of apartments, and the sale price at least 30 days in advance. After authorities officially approve and issue notifications, the project will begin accepting applications.