A social housing project. (Source: VNA)
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Evaluating the results of the supervision of the implementation of policies and laws on managing the real estate market and developing social housing in the 2015-2023 period, in terms of land fund for social housing development, the National Assembly’s supervisory delegation affirmed that most localities have paid attention to allocating land for social housing construction when establishing and approving planning and when approving investment policies for commercial housing projects, requiring 20% of the land fund for social housing.
However, many localities have not allocated independent land funds for social housing development. The development of social housing mainly depends on the 20% land fund in commercial housing projects.
To meet the housing needs of the people, in 2024, the government set a target for the whole country to complete 130,000 social housing units. However, this target is very difficult to achieve this year.
Experts believe that the land fund is also one of the reasons why the supply of social housing has not grown as expected.
According to the Ministry of Construction’s statistics, from 2021 to the end of Q3/2024, there were 622 social housing projects implemented nationwide with a scale of 565,177 units, of which 79 projects were completed with a scale of 42,414 units; 131 projects have started construction with a scale of 111,687 units; and 412 projects have been approved in principle with 411,076 units.
Thus, with the number of apartments that have been started and completed, only about 35.6% of the target of the Project “Investing in building at least 1 million social housing units for low-income people and industrial park workers in the period of 2021-2030” set for 2025 (428,000 units) has been achieved so far.
A social housing project in Hanoi. (Source: Vietnam+)
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In the period from 2021 to now, 9,757 hectares of land have been planned for social housing nationwide, according to the Ministry of Construction.
To increase the supply of social housing, the Ministry of Construction requires provinces and cities to focus on key tasks related to establishing, amending, and supplementing local housing development programs and plans. These should clarify the targets for social housing for low-income people, industrial park workers, and armed forces; and implement the tasks assigned by the Prime Minister regarding the targets for completing social housing in 2024 and in the entire period of the Project.
Especially, the Ministry of Construction requires localities to review and supplement urban planning and industrial zone planning to ensure that sufficient land is allocated for social housing development. The allocation of 20% of the land fund with technical infrastructure investment in commercial housing projects and urban areas for social housing development according to the Law on Housing should be ensured, with suitable and convenient locations and appropriate scale and infrastructure.
Along with proposing solutions to streamline legal procedures for social housing and worker housing projects, as well as for the renovation and reconstruction of apartment buildings, localities need to be creative, flexible, and timely in allowing eligible borrowers to access the VND 120,000 billion credit package.
At the same time, the Ministry of Construction also requires investors of approved social housing projects to urgently complete legal procedures (land handover procedures, design basis approval, technical design, fire protection, construction permits, and selection of consulting and construction contractors) to start construction according to the approved planning and investment policies.
Social housing units in Nam Long Residential Area, District 7, Ho Chi Minh City. (Photo: Hong Dat/VNA)
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At the 8th session of the 15th National Assembly, Deputy Prime Minister Tran Hong Ha said that the government has also directed the review of the entire fund of resettlement housing for conversion to social housing. It has also promoted reform, streamlining, and simplification of administrative procedures, expanded the subjects of enjoyment, and increased access to social housing. The government will also use a combination of measures to keep social housing prices at a reasonable level to ensure the effectiveness of social housing development in the future.
The Minister of Construction, Nguyen Thanh Nghi, also committed to working with ministries, branches, and localities to implement Directive 34 of the Party Central Committee’s Secretariat on strengthening the Party’s leadership in social housing development in the new situation. He also pledged to implement the National Assembly’s resolutions on this specialized topic, as well as the programs, schemes, and plans directed by the Government and the Prime Minister on social housing development.
According to the Minister of Construction, in the future, various types of social housing will be developed to allow for purchase, lease, or rent-to-own options, and to increase the proportion of social housing for rent. The Ministry of Construction will issue full guidance documents on the recently passed legal provisions related to social housing development. It will also continue to review and perfect the legal provisions related to social housing development, and promote the implementation of social housing projects in localities.
Thu Hang
“Hanoi Proposes Maximum Social Housing Rent of VND 198,000, Apartment Service Fees of VND 16,500/sqm/month”
The Hanoi People’s Committee is seeking feedback on a draft framework for rental prices of social housing projects in the city that are not publicly funded or financed by trade union finances. The proposed framework sets a maximum rental rate of 198,000 VND per square meter per month for these properties.
“Bình Dương Offers Investors a ‘Zero-Dollar’ Fee Policy for Social Housing Construction”
To attract investment in social housing development, Binh Duong offers complete legal support with zero-cost paperwork and 50% funding for technical infrastructure within the project’s scope.
“Affordable Social Housing in Danang: Rent Starts at VND 57,000 per sqm per month”
In Danang, the rental framework for social housing that is not invested with public capital, has a minimum rent of 57 thousand VND/m2/month and a maximum of 165 thousand VND/m2/month for union financial resources.
“The Murky Waters of Real Estate: A Delicate Dance of Uncertainty and Valuation”
At the 8th session of the 15th National Assembly on October 28, National Assembly deputies pointed out the inadequacies of the current real estate prices and urged the Government to continue implementing social housing policies for low-income earners.
The Local Real Estate Market: Where the Shortage Doesn’t Halt and the Surplus Doesn’t Sell.
“A thorough assessment of the local real estate markets is imperative to identify areas where there is a shortage of development and where there is an oversupply of properties that remain unsold.” This was one of the key messages conveyed by Deputy Prime Minister Tran Hong Ha during the Central Steering Committee meeting on housing policies and the real estate market, held on October 24th.
