The Housing Law of 2023 stipulates specific regulations regarding the sale of social housing. According to the law, after a period of five years from the full payment for the purchase of social housing, the buyer is allowed to resell it on the open market to eligible individuals, provided they have obtained the certificate of ownership.
The seller is exempt from land use fees but is required to pay income tax as per the tax laws, unless the social housing being sold is a separate house. In that case, the seller must pay the land use fee as governed by the government and abide by the income tax regulations.
As of August 1st, the transfer of social housing after five years will only incur costs such as notarization, personal income tax, registration fee, and dossier evaluation fee, similar to the transfer of a regular commercial apartment.
Previously, the transfer of a social housing unit required a payment of 50% of the land use fee, which could range from VND 120 million to VND 200 million per unit. With the new regulation, this cost is waived for homeowners.
Dai Kim Building social housing project in Dai Kim ward, Hoang Mai district, Hanoi (Photo: Hong Khanh)
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In Hanoi, several social housing projects have been in use for over five years and are now eligible for transfer, including Dai Kim Building, Rice City Linh Dam, and others.
At the Dai Kim Building project in Hoang Mai, where units were initially sold for less than VND 15 million per square meter, the secondary market price has now reached VND 40-42 million per square meter.
Similarly, at the social housing project in Tay Nam Linh Dam (Hoang Mai), which was handed over in 2016 with a selling price of over VND 13 million per square meter, the current price has climbed to around VND 42-44 million per square meter.
At the Rice City Song Hong project in Long Bien, the secondary market price is listed at VND 35-38 million per square meter, a significant increase from the original selling price of over VND 13 million per square meter six years ago.
One of the pioneering social housing projects in Hanoi, the Ngo Thi Nháºm project in Ha Dong, had an initial selling price of over VND 8 million per square meter more than a decade ago. Today, the price at this project hovers around VND 35-37 million per square meter, more than quadrupling the original price.
Mr. Dang Duy, director of a real estate transaction floor in Ha Dong, assessed that the demand for housing in the market is growing, especially in the affordable and social housing segments. However, these types of housing are becoming scarce, and there is almost no new supply in this category.
Currently, the market mostly offers mid-range and high-end products. In the past few months, Hanoi has even seen a lack of new apartment supply priced below VND 45 million per square meter.
“In the context of limited supply, the pressure on affordable housing continues to drive up prices for social housing units, even those that have been in use for many years. It can be seen that the secondary market prices for social housing have caught up with the prices of commercial apartments. With the predicted continued rise in housing prices in Hanoi, social housing is expected to follow suit,” said Mr. Duy.
To address the housing needs of low-income earners, Mr. Duy suggested promoting the development of affordable housing in addition to social housing projects.
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