Abundant supply of social housing
According to Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research Institute, the implementation of the Prime Minister's "Investment in the construction of at least 1 million social housing units for low-income earners and industrial park workers in the period 2021-2030" project has shown many positive signs, with the scale of completed and licensed projects, and those starting construction in 2024, increasing by 46% and 13.4% respectively compared to 2023, especially in cities with high housing demand such as Hanoi , Ho Chi Minh City, and Hai Phong.
Looking back at some key milestones in 2025, the Hanoi housing market is welcoming many social housing projects, helping to increase the still limited supply. Specifically, at the end of February, the supply of social housing was supplemented from the number of eligible rental apartments that were converted to a transfer model in some old social housing projects. Accordingly, the Hanoi Department of Construction announced the acceptance of applications to purchase social housing at the CT2A high-rise apartment project - Thach Ban Housing Area (Long Bien district) after 5 years of rental (phase 1), with a total of 82 apartments, ranging in size from 69.03 to 69.94 m². Subsequently, in early March, the joint venture between Hanoi Housing Investment and Development Corporation (Handico) and Viglacera Corporation officially commenced construction on the largest-ever project, comprising 1,104 social housing units, at plots CT3 and CT4 in the Kim Chung New Urban Area (Dong Anh district). Also in 2025, Hanoi will welcome another social housing project in Thuong Thanh (Long Bien district) covering over 6 hectares, consisting of three 22-story apartment buildings (CT1, CT2, and CT3) and 44 townhouses, developed by a joint venture between Him Lam Thu Do Corporation and BIC Vietnam Corporation.
Information from the Housing and Urban Development Investment Corporation (HUD) indicates that in the second quarter of 2025, the corporation will commence construction of the CT-M2 social housing project in the Van Canh New Urban Area (Hoai Duc district) and the CT-07 project in the Thanh Lam - Dai Thinh 2 New Urban Area (Me Linh district). In the third quarter of 2025, HUD will commence construction of the CT-01+02 social housing project in the Thanh Lam - Dai Thinh 2 New Urban Area (Me Linh district) and will continue to commence construction of the HH1 social housing project in the HUD - Son Tay Urban Area (Son Tay town) in the last quarter of the year.
According to statistics from the Hanoi Department of Construction, it is projected that in 2025, the city will have 11 completed social housing projects, providing nearly 6,000 apartments, while also commencing construction on 5 more projects with a scale of 10,220 apartments. The increasing supply of social housing is expected to help lower housing prices in major cities, making them more affordable for the general public.
Positive signal for the market.
According to the Vietnam Real Estate Brokers Association, in 2024, apartment prices in Hanoi increased sharply not only in new projects but also in existing ones. Therefore, one way to improve the price level of apartments is to improve the market supply, and an increase in the supply of social housing will help bring prices down.
"When the supply of social housing increases, apartment prices will fall to a level more suitable for people with real housing needs," affirmed Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association.
According to Nguyen Anh Que, Chairman of the Board of Directors of G6 Investment and Development Group Joint Stock Company, the supply of housing in Hanoi will be abundant. From the end of 2025, social housing will begin to be available, with approximately 4,000 units spread across various districts and communes. Between 2027 and 2029, the supply of social and commercial housing will reach at least over 300,000 units. Current housing prices are quite high, but if there is more social housing and affordable housing, the overall price level will be brought down.
Mr. Nguyen Anh Que believes that during the 2008-2010 period, there were apartment projects priced at 50-70 million VND/m². However, from 2011-2013, when affordable commercial housing and social housing projects appeared on the market, averaging 11-15 million VND/m², apartment prices immediately cooled down. Based on this actual development, if the old scenario repeats, house prices could fall from 2026. The reason is that housing projects in general, and social housing projects in particular, will begin to complete the necessary procedures, increasing supply in about a year afterward, helping to lower house prices.
However, some experts also argue that when the supply of social housing increases, the price of commercial apartments may not necessarily decrease because each real estate segment serves a different group of customers.
According to Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, the real estate market, like other commodity markets, is divided into several segments: high-end, mid-range, and affordable. Buyers of mid-to-high-end apartments often have high demands regarding location, amenities, and quality of life. On the other hand, not everyone is eligible to buy social housing. Therefore, increasing the supply in the social housing segment in the near future is unlikely to have a strong impact on the prices of other apartment segments. However, this is a positive sign, increasing opportunities for people to buy homes and creating more diversity and dynamism in the market.
Source: https://hanoimoi.vn/them-du-an-nha-o-xa-hoi-gia-chung-cu-se-ha-nhiet-700405.html
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