Are social housing units really affordable?

VTV.vn - With selling prices of many social housing projects in Hanoi reaching nearly 30 million VND/m2, the dream of owning a home remains a distant one for middle- and low-income earners.

Photo: Ngoc Hien

"Unlocking" opportunities for home ownership remains a distant reality.

The new mechanism under Decree 261/2025/ND-CP has significantly expanded the eligibility criteria for purchasing social housing by raising the income ceiling to 20-40 million VND/month. This adjustment is seen as "opening the door" to home ownership for workers. However, looking at the actual selling prices and payment terms at social housing projects in Hanoi , many realize that the dream of owning a home is still quite far away.

According to a report by the Hanoi Department of Construction, from the end of 2024 to the present, a series of social housing projects in Hanoi have been started, however, selling prices have tended to increase sharply. Prior to 2023, the selling price of social housing in the capital city ranged from 13-17 million VND/m2.

One of the highest prices currently is for the Thuong Thanh social housing project (Rice City Long Chau), priced at 29.4 million VND/m2 (including VAT, excluding maintenance fees), which went on sale from October 1st. Buyers have to spend between 940 million and 2 billion VND, depending on the size, to own a home there. The previous record belonged to a social housing project in Ha Dinh, Tan Trieu commune, Thanh Tri district (formerly), with a provisional selling price of 25 million VND/m2.

Rendering of the Rice City Long Chau social housing project with a price of 27 million VND/m2. Photo: BIC Vietnam.

Ms. Nguyen Thu Trang, 29 years old, an accountant at a trading company in Cau Giay ward, currently renting an apartment in Phu Dien ward, shared: “I’ve been saving for over four years, plus some money from my parents, and now I only have about 120 million VND. I plan to register to buy a social housing unit at the Trung Van project, a 50m2 apartment priced at over one billion VND. But to get a bank loan, I need at least 20% of my own capital, which is about 200 million VND. And I don’t have enough. Even though the 5.4% interest rate is really low, getting a loan is already difficult.”

Ms. Trang earns about 18 million VND per month. After deducting rent, living expenses, and sending some money back home, she has almost no significant surplus. "I don't mind taking out a long-term loan, as long as I can have stable housing. But with prices like that, the dream of social housing remains out of reach," she said.

In the case of Duy Anh, 29, a technician in Hanoi, he and his wife faced a problem with the price exceeding their means, despite having available capital. He recounted that since getting married, with support from both sets of parents and their savings, they had accumulated about 300 million VND and planned to register to buy an apartment in a social housing complex in Long Bien ward.

“A 55m2 apartment costs about 1.6 billion VND. If we borrow 1.3 billion VND over 20 years, we would have to pay about 8 million VND per month, including both principal and interest. My wife and I earn over 30 million VND, which seems sufficient, but after deducting living expenses and spending on our two children, there's nothing left over. Even with the initial capital, we still don't dare sign the contract because we're afraid of running out of funds,” Duy Anh calculated.

These real-life stories show that the biggest obstacle today is not only the lack of initial capital, but also the fact that the selling price of social housing is far beyond the affordability of even those with stable incomes.

According to real estate experts, the current paradox is that while more and more people qualify for loans, the actual rate of access to capital is low due to exorbitant prices and high down payment requirements. This makes the "dream of social housing"—though closer on paper—still distant in reality.

To make social housing truly "affordable"

In reality, financial support policies are only a "temporary painkiller." If the input costs of social housing continue to rise, from land and materials to project management costs, then even if loan interest rates decrease, people will still find it difficult to afford to buy.

However, experts argue that to understand why social housing is becoming increasingly expensive, a deeper look into the factors that make up the price is needed. According to architect Ngo Minh Tam of Covic Consulting & Construction Joint Stock Company, the problem lies not only in the cost of materials, land, or labor, but also in the implementation capacity of the investor and the lax price management mechanism.

"It's impossible to demand absolutely cheap social housing when input costs are all increasing, but what's more worrying is the situation where construction is delayed, additional costs arise, and then all of that is passed on to the selling price. In that case, the people ultimately bear the cost of the delays," Mr. Tam analyzed.

This view was also emphasized by Deputy Minister of Construction Nguyen Van Sinh at the social housing progress review conference in mid-October: “We need real apartments with real value to sell to people who truly need housing. Social housing prices in Hanoi are currently at record highs, possibly due to weak investor capacity or exploitation of lenient policies to inflate prices. The city needs to conduct immediate inspections, checks, and controls to ensure people still have the opportunity to buy a home.”

The Deputy Minister suggested that Hanoi should prioritize the administrative procedures of social housing projects, both to expedite progress and reduce prolonged costs – one of the reasons for unreasonably inflated prices.

If the input costs of social housing continue to rise, from land and materials to project management costs, then even if loan interest rates decrease, people will still find it difficult to afford to buy. Photo: VGP.

At the first meeting of the Central Steering Committee on Housing Policy and Real Estate Market at the end of September 2025, Prime Minister Pham Minh Chinh requested ministries, sectors, and localities to regulate real estate and social housing prices according to real market mechanisms, in line with people's incomes.

Commercial housing prices must be in line with market principles, the economy, and the conditions and capabilities of the people; the goal is to ensure that all citizens have housing, contributing to improving their material and spiritual well-being.

Accordingly, a comprehensive and all-encompassing solution is needed; close cooperation and coordination between the state and businesses, between the central and local governments, and the integration of fiscal and monetary policies with land policies and other policies. The state must regulate land and real estate prices through financial instruments, especially tax, fee, and other financial policies; establish mechanisms and policies to reduce interest rates and loan terms appropriately; and study regulations on income levels for those eligible to purchase social housing, tailored to the specific circumstances and local conditions.

While policies have opened up, the gap between income and housing prices remains a "bottleneck" that needs to be addressed. Solving the social housing problem lies not only in preferential rates or income regulations, but also in controlling prices to ensure they are truly affordable. Only then will owning a home no longer be a distant dream for working people.

Source: https://vtv.vn/nha-o-xa-hoi-co-thuc-su-re-100250806130222727.htm