'Sifting sand' to find social housing

(CLO) Recently, several social housing projects in Hanoi have been announced as eligible to sell apartments for rent after 5 years. This information is receiving attention from many people in the context of rising house prices in Hanoi, however, the number is still very small.

The high-end and ultra-luxury apartment segments are consistently launching new units.

In recent years, the Hanoi real estate market has continuously seen the emergence of projects, including high-end and luxury apartments and townhouses, with exorbitant prices. Even suburban and outlying areas are flooded with this segment.

According to the latest report from Savills Vietnam, in 2024, the total primary supply in the Hanoi real estate market reached nearly 25,000 units, the highest in the past 5 years; however, the majority belonged to the B-segment, accounting for 97% of the market share.

In contrast to the boom in the high-end and luxury real estate segments, the affordable housing and social housing segments are still in a state of "extinction". (Photo: CP)

Primary market asking prices reached VND 75 million/m2, a 9% increase compared to Q3/2024 and a significant 29% increase compared to the same period last year.

In the secondary market, apartment prices also recorded an upward trend, especially in apartment projects located near the Cat Linh - Ha Dong and Nho Son - Hanoi Station urban railway lines. In many projects along these two urban railway lines, apartment prices in Q4 2024 increased by 24% compared to the previous quarter.

According to Savills Vietnam's survey data, since 2020, the average secondary market selling price has increased by 22% annually. Of these, Class C properties recorded the highest increase at 26% annually, followed by Class B at 20% and Class A at 19%.

According to Ms. Do Thu Hang, Senior Director of Consulting and Research at Savills Hanoi, the entire Hanoi real estate market is expected to reach 25,200 apartments, with Class B apartments continuing to lead, accounting for 88% of the market supply.

According to Ms. Hang, the supply-demand imbalance, with the majority of supply concentrated in the B-class and A-class (high-end, luxury) apartment segments, means that apartment prices are unlikely to decrease in 2025 and tend to remain stable or increase.

The affordable housing segment and social housing are simply insufficient.

In contrast to the "boom" in the high-end and luxury real estate segments, the affordable housing and social housing segments are still in a state of "extinction".

According to a Savills report, in 2024, apartments priced above VND 4 billion accounted for 59% of the total number of units sold, a significant increase from 2% in 2020.

Apartments priced between 2 billion and 4 billion VND accounted for 40%, while apartments priced under 2 billion VND accounted for only 1% of the total number of apartments sold in the entire market during the year.

Recently, several social housing projects in Hanoi have been announced as eligible to sell apartments for rent after 5 years. This information is receiving attention from many people in the context of rising housing prices in Hanoi, however, the number is still very small.

According to information from the Hanoi Department of Construction, the Phu Lam Social Housing Project (Phu Lam Ward, Ha Dong District), invested by Hai Phat Investment Joint Stock Company, is eligible to accept applications for purchasing social housing after 5 years of leasing.

The number of social housing apartments for rent that are being offered for sale is 408, with areas ranging from 48-69m2. The selling price, excluding 5% value-added tax and 2% maintenance fee, is over 13.6 million VND/m2.

Next is the CT2A high-rise apartment project in the Thach Ban Housing Area (Thach Ban ward, Long Bien district), invested by the General Corporation for Investment and Development of Housing and Urban Areas under the Ministry of National Defense, with a total of 414 apartments.

This phase of social housing offers 82 apartments for sale (after a 5-year lease), with areas ranging from 69.03 to 69.94 m2 and a provisional selling price (including 5% value-added tax, excluding 2% maintenance fee) of 12.3 million VND/m2.

Another social housing project that is also eligible for sale and is expected to accept applications for purchase in Q4/2025 is the Ha Dinh social housing project, built on plot N01 - Ha Dinh New Urban Area (Tan Trieu commune, Thanh Tri district).

The project is invested by a consortium of Urban Infrastructure Development Investment Company (UDIC), Hanoi Water and Electricity Installation and Construction Joint Stock Company (Haweicco), and DAC Hanoi Housing Business and Development Joint Stock Company.

The project comprises 440 apartments, including 365 social housing units and 75 commercial housing units. Of the 365 social housing units, 255 are for sale, 37 are for lease-to-own, and 73 are for rent.

Notably, the provisional selling price of apartments in this project is 25 million VND/m2, the rental price for social housing is approximately 150,000 VND/m2/month, and the lease-to-own price is 390,000 VND/m2/month. The investor will announce the official price after it has been appraised by the management agency as per regulations.

Thus, the total number of social housing units by the end of this year will be less than 1,000, while the entire Hanoi real estate market is expected to reach 25,200 apartments, with Class B apartments continuing to lead, accounting for 88% of the market supply. Experts believe that the current number of housing units is too small and cannot meet market demand.

Source: https://www.congluan.vn/hai-cuc-doi-lap-cua-thi-truong-bat-dong-san-ha-noi-dai-cat-tim-nha-o-xa-hoi-post334438.html