Workers' dormitories in Ho Chi Minh City - Photo: QUANG DINH
This is the second time the head of the Party and State has mentioned the policy of developing rental housing funds in less than 10 days.
Earlier, while working with several agencies to implement Directive No. 34 of the Party Central Committee on social housing and the orientation for housing development in the coming period, General Secretary and President To Lam stated that from now until 2030, housing for sale will still be necessary, but rental housing must be identified as a strategic pillar.
To implement this policy, Prime Minister Le Minh Hung requested Hanoi to start construction of rental housing projects in June 2026. At the same time, the Ministry of Construction must proactively propose new policy solutions and a comprehensive mechanism for rental housing.
This includes researching policies for leases of 15-20 years or longer. It also involves creating breakthroughs in procedures, establishing financial mechanisms for public and private sector participation, and requiring commercial housing projects to allocate a certain percentage for the construction of rental housing.
Hanoi is very proactive and is quickly implementing the plan, committing to shortening procedures and inviting real estate businesses to propose projects... Hanoi is being highly anticipated because it has been chosen as a pilot project; if successful, this model will be replicated nationwide.
Twenty-one years ago, rental housing was included in the 2005 Housing Law, but even in major cities, there is still no professional rental market; instead, it mainly operates spontaneously on a small scale.
There are no "sharks" involved in this segment because rental housing projects have a very long investment cycle of about 40-50 years, while selling for ownership only requires 3-4 years to recoup the investment and make a profit.
While real estate businesses often lack sufficient equity capital, most need to borrow from banks before launching projects. Therefore, attracting investors to the rental housing segment by relying solely on preferential interest rates is unlikely to succeed.
To make rental housing the "best option," localities need to proactively attract public-private partnerships (PPP) in the form of BOT (build-operate-transfer), a collaboration between the State and private investors. Localities prepare the land and infrastructure, while investors only build and operate rental housing.
In addition, to minimize rental costs, investors should also incorporate new, cost-effective materials into construction, maximize project functionality to reduce investment costs while maintaining durability and environmental friendliness.
In addition, the model of trade union institutions in some localities, established by the Vietnam General Confederation of Labor many years ago, could also serve as a reference when building rental housing.
These union-run facilities are in high demand because the developer offers a variety of sizes ranging from 30m2, 45m2 to 60m2. Furthermore, their location within the industrial zone, along with amenities serving basic needs, and reasonable rental prices, make them attractive options.
In short, building apartments for long-term rental is essential at the present time, given that real estate prices in major cities like Hanoi and Ho Chi Minh City have become unaffordable for the majority of the population.
The development orientation towards rental housing has become a crucial pillar, shifting the mindset from ownership to actual use, contributing to preventing speculation, artificial price surges, and market manipulation in the real estate sector.
When people have enough housing, their quality of life improves, labor productivity increases, social welfare is better addressed, and the country's sustainable development indicators are strongly promoted.
Source: https://tuoitre.vn/de-xay-nha-o-cho-thue-la-thuong-sach-20260602095416515.htm
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