New social housing projects offer hope for workers, but accessibility issues persist

New social housing projects offer hope for workers, but accessibility issues persist

Although the social housing supply has shown signs of improvement since the beginning of the year, experts note that people with average to low incomes who are truly in need of a stable residence still have difficulty accessing these homes due to their modest earnings.

A rendering of a social housing project in Hà Nội's Hạ Đình Urban Area. The project construction began in early December 2024 and is expected to be completed in 30 months. — VNA/VNS Photo

Thousands of social housing projects in Hà Nội will soon begin construction, a positive sign for average workers amid rising prices for commercial apartments. However, experts say that ensuring accessibility to affordable housing remains a challenge. 

In mid-January, the Hà Nội People’s Committee approved and updated the list of 72 housing and urban area projects in the city’s housing development plan.

Among these projects, eight are social housing, comprising 1,583 apartments and a total floor area of 255,722 square metres. 

Although the social housing supply has shown signs of improvement since the beginning of the year, experts note that people with average to low incomes who are truly in need of a stable residence still have difficulty accessing these homes due to their modest earnings.

The eligibility for social housing support applies to single workers earning no more than VNĐ15 million (US$590) per month. For married couples, the combined income must be under VNĐ30 million. 

Meanwhile, with the average monthly income for Hà Nội residents standing at VNĐ7 million, VNĐ15 million of monthly income is already considered comfortable.

Chairman of the Vietnam Association of Realtors (VARS) Nguyễn Văn Đính told Voice of Vietnam (VOV) that social housing had always been a top priority.

It aligns with the level of income and purchasing ability of underprivileged people, low-income earners and those whose only source of income is wages, according to Đính. 

Notably, large cities have abundant job opportunities, yet lack an affordable housing segment. This means social housing is almost a ‘lifeline’ for these groups. 

Encouraging investors to develop social housing to meet the growing demand for this segment is therefore necessary.

Social housing apartments ranging between VNĐ1-2 billion ($39,000-78,000) are considered in the affordable segment for average and low-income workers, but are also challenging for real estate developers due to current market prices. 

However, this challenge must be addressed through technology advancements and cost-saving solutions, said Đính, going on to stress the importance of quality construction.

The association chairman also noted that the State must put forward support policies in terms of tax benefits and incentives, in addition to financial support from banks. 

“The role of local authorities is to ensure planning, guarantee land funds and assist social housing developers in administrative procedures.

“Banks must research suitable interest rates for home buyers. Businesses need to actively participate in developing social housing to meet the country’s goal of completing one million social housing units by 2030,” said Đính. 

Former Deputy Minister of Natural Resources and Environment Đặng Hùng Võ agreed with the strategy to create an affordable real estate segment that aligns with the income level of the majority of the population, adding that better policies should be introduced to ensure the accessibility of social housing for those who need it.

The current segment of social housing remained unaffordable for most average-income earners, much less those who have low income, he said, underscoring the need to take measures that could ensure a balanced price in the real estate sector. 

"The current rise in housing prices does not align with the average income of the people. I believe we need stronger solutions to curb the increase in real estate prices,” said Võ.

"There is also a trend of hoarding and wealth accumulation through trading real estate, which further fuels housing price surges," he explained. 

“The issue that needs to be addressed now is to introduce an affordable housing segment to the market. We must end the current price hikes and price inflation, as these are obstacles that have kept social housing out of reach for average workers,” Võ stressed.

Experts also suggest that to ensure that average workers and low-income earners have access to social housing, there needs to be more decisive action from the Government in the near future. 

Attractive support policies for real estate developers could be considered to reduce cost burdens and encourage businesses to invest in this segment. Additional preferential credit packages with low-interest loans could be considered to stimulate growth. 

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