New Policy Expands Opportunities for Social Housing Development

Vietnam’s social housing (SH) policies are being adjusted in a more practical and human-centered direction — including raising the income eligibility threshold and lowering preferential interest rates. These changes not only help low-income individuals access stable housing more easily, but also lay a foundation for the sustainable development of Vietnam’s real estate market.

Policy Adjustment: Expanding Access

The Ministry of Construction is proposing amendments to Decree 100/2024/NĐ-CP, which would raise income limits for eligibility to buy or lease social housing:

• Single individuals: from VND 15 million to VND 20 million/month
• Households: from VND 30 million to VND 40 million/month

This is a necessary step to better reflect income levels in major urban areas, while expanding access for middle-income earners with real housing needs.

Financial Support: Lowering Preferential Loan Interest Rates

The People’s Committee of Hanoi has proposed applying a preferential loan interest rate of 4.8% per year for policy beneficiaries — lower than the current 6.6% per year rate offered by the Vietnam Bank for Social Policies.

This policy would bring substantial benefits to workers in industrial zones, low-income and near-poor households seeking to build or renovate homes, students, and Vietnamese workers preparing for overseas employment. By reducing monthly financial burdens, it increases the feasibility of home ownership for these groups.

Positive Impact: Balancing Supply and Demand, Stabilizing the Market

Relaxing income conditions and lowering preferential interest rates not only broadens public access to social housing, but also brings positive effects across the market. Specifically, the new policy helps stimulate real housing demand, enabling more low- and middle-income earners to realize their goal of stable homeownership. It also addresses the ongoing issue of “excess supply yet unmet demand” caused by restrictive eligibility in the past.

At the same time, these incentives give developers and investors the confidence to launch new projects, especially in the affordable housing segment — which is currently in high demand. In the long term, such adjustments will help stabilize the real estate market, rebalance supply and demand, and limit speculative investment and asset bubbles.

Long-Term Vision: Sustainable Social Housing Development

Social housing plays a vital role in the strategy for comprehensive, equitable, and sustainable urban development. The latest policy adjustments reflect a strong commitment from government authorities to gradually meet the legitimate housing needs of the population — especially among low- and middle-income groups.

In parallel, these policies are expected to encourage more businesses to invest in the affordable housing segment — where real demand exists but viable supply remains limited. Ultimately, this is a necessary step toward ensuring a healthier, more stable real estate market that is less dependent on speculation and more resilient in the long run.

Source: https://baomoi.com/