“The High-Income Trap”
Ms. To Linh, a resident of Cau Giay, Hanoi, works in a communications company earning 16 million VND per month, and her husband earns a similar salary. Their combined income is only 2 million VND higher than the eligibility threshold, disqualifying them from purchasing social housing.
“With a combined income of 32 million VND per month and a young family to support, we barely break even on our expenses. Some months, we can save around 3-5 million VND. This income limits us to only being able to afford social housing as commercial property prices in Hanoi are extremely high. It’s frustrating that our income disqualifies us from social housing as well,” shared Ms. Linh.
Mr. Nguyen Hung, a resident of Ha Dong, Hanoi, faces a similar dilemma. His household income of 35 million VND per month is considered high, disqualifying him from purchasing social housing, despite meeting other eligibility criteria.
Many individuals are caught between being too rich for social housing but too poor for commercial properties.
“It’s unfair for young families like mine. Living expenses in Hanoi are high. Newly launched commercial apartments are priced at an average of 80 million VND per square meter, which is unaffordable for my family. Even pre-owned social housing units cost around 60-65 million VND per square meter, while upcoming social housing projects offer prices as low as 25 million VND per square meter. If we can’t purchase new social housing, my family will never be able to afford a home in Hanoi,” expressed Mr. Hung.
A Need for Revision
Mr. Nguyen Hoang Nam, CEO of G-Home, suggests that the eligibility criteria for social housing beneficiaries should be adjusted to accommodate those who are not considered rich but may have some savings and pay taxes yet cannot afford commercial properties.
Mr. Nguyen Xuan Dung, Chairman of Viconship, added: “With a maximum income of 15 million VND per month to qualify for social housing, families have to spend around 7-8 million VND on loan repayments. This leaves them with only 7 million VND for their monthly expenses, which is unreasonable and needs to be re-evaluated.”
From an investor’s perspective, Mr. Dung pointed out that this situation creates significant challenges in selling their products on the market. If not addressed promptly, developers will struggle to find buyers for their projects.
Mr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association, emphasized the unaffordability of commercial apartments in major cities like Hanoi and Ho Chi Minh City for many families, especially the younger ones.
Currently, there are two loan packages for individuals under 35 years old to purchase social housing, but the supply of social housing is limited. Many families find themselves in a predicament as they are neither rich enough to buy commercial properties nor poor enough to qualify for social housing according to the income criteria.
“We must immediately adjust the income requirements to expand the eligibility for social housing and address the economic realities of large cities,” urged Mr. Dinh.
According to Clause 30 of Decree 100/2024/ND-CP, effective from August 1, 2024, to be eligible for social housing support, single individuals must have an income of no more than 15 million VND per month, while married couples must not exceed 30 million VND per month combined.
Social Housing Credit: Fear of Fizzling Out, Package After Package
According to experts, the new credit package offered by 9 banks for young people under 35 years old to buy social housing is essentially no different from the VND 120,000 billion package currently being implemented, despite the longer incentive period. With interest rates still high and limited social housing supply, this package risks falling into the same pitfalls as its predecessor.
“Streamlined and Superior: How Special Mechanisms Slashed Over 1,000 Days Off Social Housing Procedures.”
“This information was presented by Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HOREA), at a seminar on “Breakthroughs for Social Housing Development” organized by the Government Portal on June 5th.”
Over 3,900 Affordable Homes Up for Sale This May
According to data from local construction departments, there were 24 projects with a total of 5,170 units eligible for the sale of future construction housing in 11 provinces and cities in May 2025. Social housing continues to dominate with 3,935 units.
“Credit Packaging for the Under-35s: A Pipe Dream?”
According to experts, the new credit package offered by 9 banks for young people under 35 years old to buy social housing is essentially no different from the VND 120,000 billion package currently being implemented, despite the longer incentive period. With interest rates still high and limited supply of social housing, this package risks falling into the same pitfalls as its predecessor.
Proposed Regulations on the Functions and Operations of the National Housing Fund
The Ministry of Construction is drafting a decree detailing certain clauses and measures to enforce the National Assembly’s Resolution 201/2025/QH15, dated May 29, 2025. This resolution revolves around piloting specific mechanisms and policies to boost the development of social housing. As part of this initiative, the Ministry has proposed a detailed framework for the National Housing Fund, aiming to provide a robust foundation for this critical aspect of social policy.
