Social housing rental price in Hanoi is nearly equal to 1 month's salary, poor people are 'stunned'

" Not only was I surprised, but I was truly stunned because this amount is almost equal to the combined monthly salary of my husband and me ," said Thuy Linh (from Nam Dinh province, currently working as a garment factory worker).

Ms. Linh said that for the past 2 years, due to lack of work in the countryside, she and her husband came to Hanoi and worked together as workers in a garment factory in the suburbs, with a salary of 7.5 million VND/month/person. On days when they work overtime or have a lot of work, they will receive additional allowances. On average, their monthly income is about 20 million VND.

Currently, the couple is renting a 30m2 apartment in Thanh Xuan district. The room has basic furnishings and a small loft, with a monthly rent of 4 million VND. In the future, because they want to bring their two young children to live with them for easier care, Ms. Linh plans to find a larger place to live and also take on a side job selling goods online to increase their income and afford the higher rent. Social housing is currently their target.

" I know that apartment rents are getting more and more expensive, so we want to switch to social housing because this type of housing will be subsidized. Currently, my family is struggling to make ends meet, so we cannot choose a place that is too expensive. Even if we move to a larger place, I want the rent to be only around 5 million VND/month. We can only afford that price, and I expect the social housing rent to meet that criteria ," Ms. Linh shared.

However, after learning about the proposed social housing rental price in Hanoi and calculating that it could be more expensive than the current rental price, Ms. Linh was very surprised. " To have enough space for 4 people, we want to rent a 70 m2 apartment. But that will cost nearly 14 million VND, which will consume a month's income for both husband and wife. If we choose a smaller apartment, about 50 m2, it will cost us nearly 10 million VND, which is still too expensive. If this price is approved, my family will probably not be able to afford to rent social housing ," Ms. Linh complained.

Many people are surprised by the projected rental prices for social housing in Hanoi. (Illustrative image)

According to Ms. Linh, she has researched and learned that social housing buildings over 30 stories high, although more expensive, are generally of higher quality and equipped with more amenities, due to the large capital investment by the developers. Conversely, lower-rise buildings are usually built with less capital, resulting in lower quality, and are often further from the city center with less adequate facilities.

" If you're going to rent social housing, you have to choose a good quality project so you can live there long-term. Otherwise, I'd rather rent commercial housing, which is both convenient in the city center and fully furnished ," Ms. Linh compared.

Similarly, Nguyen Minh Hong, a worker at an industrial park in Gia Lam district, who also has to rent a house, said she has had to move several times due to continuously rising rents.

Previously, Hong's family of five rented a 50m2 room in a mini-apartment for 4.5 million VND per month. Recently, the landlord demanded an increase to 6 million VND per month, so she had to move to renting two smaller rooms for 2.5 million VND per month each.

“ I accept having to rent two rooms because if I lived in a 50m2 mini-apartment, the rent would still be 6-7 million VND/month. While rented rooms are cheaper, there aren't many large ones available. An extra 500,000 VND/month for rent is already a significant expense that further depletes my family's budget ,” Ms. Hong said.

She said her monthly salary as a worker was only about 8 million VND. Her husband was a freelancer with an unstable job, so his total monthly income never exceeded 15 million VND.

With that total amount of money, they have to manage and save as much as possible just to cover their living expenses and pay for their children's education. They don't dare think about buying a house in this area and only hope to rent at a reasonable price. Having heard that social housing usually has stable prices that don't fluctuate erratically, they have high hopes.

But when hearing about the proposed rental price, Ms. Hong sadly said: " My husband and I cannot afford a rental price of 10 million VND/month. Now, with only 5 million VND, every month I have to worry about balancing my expenses with the small amount of salary left ."

Ms. Hong stated that with this price, one must have an income of about 30 million VND/month to not worry about running out of money. " Low-income people like me cannot afford such high rent. If you calculate the basic expenses in Hanoi, you will know that everything is expensive here. The tuition for my 3 children is basically 6-7 million VND/month, not including extra classes. The food and living expenses for 5 people are also up to 10 million VND/month. The remaining few million VND is probably just enough to pay for the rent, if it is a little more expensive, it will be very difficult for us to manage and negotiate, " she cited.

Many low-income workers cannot afford to buy social housing in Hanoi. (Illustrative image: Government Newspaper)

According to many experts, the proposed rental prices are too high compared to the meager incomes of workers – who are also the people most in need of social housing.

Mr. Nguyen Quang Huy - CEO of the Faculty of Finance - Banking, Nguyen Trai University analyzed that according to the survey, with an average income per capita of 6,869 million VND/month, the total income of a family of 2 working people can reach about 13,738 million VND/month.

According to financial principles, housing costs should account for a maximum of 30% of total income, or about 4.1 million VND/month, so that households can maintain other essential living needs. But with the current social housing rental price, this cost accounts for more than 100% of an individual's income and nearly 50% of a family with two workers.

" This means that even families with relatively stable incomes still have to pay a huge amount for social housing rent. For low- or middle-income groups, this housing cost is a major obstacle to stabilizing their lives. Therefore, the urgent need now is to create solutions so that rental prices are more affordable for the majority of workers ," Mr. Huy said.

Mr. Huy suggested that buildings should be 5-10 stories high and not require complex technical systems. Underground areas such as parking lots should be avoided due to high construction and maintenance costs; instead, above-ground areas should be utilized. This would reduce construction and maintenance costs, lowering rental prices while still ensuring safety and basic amenities.

Or applying modular and prefabricated construction technology helps to reduce costs and construction time. The modules are pre-manufactured and quickly assembled, not only ensuring quality but also reducing material waste. This solution has been applied by many countries and has brought high efficiency in social housing construction.

In addition, using multi-functional furniture such as folding beds, built-in wardrobes, or folding tables can create flexible living spaces for renters. This not only reduces furniture costs but also saves space, making it suitable for small apartments and providing convenience and a more comfortable living experience for low-income residents.

In addition, the State can provide low-interest loans, tax exemptions, or support the provision of cheap land. These incentives help investors reduce the financial burden and can offer more reasonable rental prices to the people.

" The proposed solutions not only aim to reduce rent but also to improve the quality of life for residents. The combination of smart design, modern construction technology, and supportive policies from the government will help realize a future where every working person can access stable, sustainable, and affordable housing, " Mr. Huy shared.

The Hanoi People's Committee is currently seeking feedback on a draft price framework for renting social housing invested in by businesses or cooperatives. This price framework is calculated per square meter of usable floor space and varies depending on the number of floors in the building.
Accordingly, the highest rate applies to buildings over 30 stories high, with a rental price of 198,000 VND per square meter of usable floor space per month. If we consider Decree 100, which stipulates a maximum usable floor area of 70 m2 and a minimum of 25 m2 for each social housing unit in a project, the highest rental price for a 70 m2 unit in a building over 30 stories would reach 13.9 million VND per unit.
The lowest rates apply to buildings under 10 stories, with a minimum rental price of 48,000 VND per square meter, equivalent to a 25 square meter apartment renting for 1.2 million VND per month.
In addition, buildings from 11 to 20 floors have rental prices of 49,000 - 98,000 VND/m2/month.
The draft states that the rental price does not include value added tax; construction maintenance costs; management and operation service prices; costs for purchasing interior equipment; fire and explosion insurance; parking fees; electricity, water and television services.

Chau Anh

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