'Sifting sand' to find social housing

(CLO) Recently, a number of social housing projects in Hanoi have just been announced to be eligible to sell apartments for rent after 5 years. This information is receiving the attention of many people in the context of housing prices in Hanoi are escalating day by day, however, the quantity is almost very small.

High-end and super luxury apartment segment is steadily selling out.

In recent years, the Hanoi real estate market has continuously welcomed projects, including apartments and townhouses in the high-end and luxury segments, with “sky-high” prices. Even suburban and suburban areas are flooded with this segment.

According to the latest report by Savills Vietnam, in 2024, the total primary supply in the Hanoi real estate market will reach nearly 25,000 units, the highest in the past 5 years, but most of them are in the B segment, with 97% market share.

In contrast to the “boom” of the high-end and luxury real estate segment, the affordable apartment and social housing segment is still in the “extinction” stage. (Photo: CP)

The primary selling price reached VND 75 million/m2, up 9% compared to the third quarter of 2024 and up 29% compared to the same period last year.

In the secondary market, apartment prices also recorded an upward trend, especially apartment projects located near the Cat Linh - Ha Dong urban railway and the Nhon - Hanoi Railway Station urban railway. In many projects along these two urban railway lines, apartment prices in the fourth quarter of 2024 increased by 24% compared to the previous quarter.

According to a survey by Savills Vietnam, since 2020, the average secondary selling price has increased by 22% per year. Of which, Class C recorded the highest increase of 26% per year, followed by Class B with 20% and Class A with 19%.

Ms. Do Thu Hang, Senior Director of Consulting and Research at Savills Hanoi, said that the entire Hanoi real estate market is expected to reach 25,200 apartments, of which class B apartments continue to lead, accounting for 88% of market supply.

According to Ms. Hang, the imbalance between supply and demand, with most of the supply concentrated in the segment of class B apartments and class A apartments (high-end, luxury), will make it difficult for apartment prices to decrease in 2025 and tend to remain stable or increase.

Affordable housing segment, social housing is nothing

In contrast to the "boom" of the high-end and luxury real estate segment, the affordable apartment and social housing segment is still in the "extinction" stage.

Savills' report shows that in 2024, apartments priced above VND4 billion will account for 59% of total units sold, a significant increase from 2% in 2020.

Apartments priced from 2 billion to 4 billion VND account for 40% and apartments priced under 2 billion VND account for only 1% of the total number of apartments sold in the whole market during the year.

Recently, a number of social housing projects in Hanoi have just been announced to be eligible to sell apartments for rent after 5 years. This information is receiving the attention of many people in the context of housing prices in Hanoi are escalating day by day, however, the quantity is almost very small.

Information from the Hanoi Department of Construction shows that the Phu Lam Social Housing Project (Phu Lam Ward, Ha Dong District) invested by Hai Phat Investment Joint Stock Company is eligible to receive applications for social housing purchase after 5 years of leasing.

The number of social housing apartments for rent for sale is 408, with areas ranging from 48-69m2. The selling price, excluding 5% VAT and 2% maintenance fee, is over 13.6 million VND/m2.

Next is the CT2A high-rise apartment project in Thach Ban Residential Area (Thach Ban Ward, Long Bien District) invested by the Ministry of National Defense's Housing and Urban Development Investment Corporation with a total of 414 apartments.

The number of social housing units for sale (after 5 years of leasing) this time is 82 apartments with an area of ​​69.03 - 69.94 m2 with a provisional selling price (including 5% value added tax, excluding 2% maintenance fee) of 12.3 million VND/m2.

Another social housing project that is also eligible to open for sale and receive registration applications is expected to open in the fourth quarter of 2025, the Ha Dinh social housing project, built on land plot N01 - Ha Dinh New Urban Area (Tan Trieu commune, Thanh Tri district).

The project is invested by a consortium of Urban Infrastructure Development Investment Company (UDIC), Hanoi Electricity and Water Construction Joint Stock Company Haweicco and Hanoi DAC Housing Development and Trading Joint Stock Company.

The project has 440 apartments, including 365 social housing apartments and 75 commercial housing apartments. Of the 365 social housing apartments, 255 are for sale, 37 are for rent-purchase, and 73 are for rent.

Notably, the estimated selling price of apartments in this project is 25 million VND/m2, the rental price of social housing is about 150,000 VND/m2/month, the rental price is 390,000 VND/m2/month. The investor will announce the official price after it is appraised by the management agency according to regulations.

Thus, the total number of social housing units by the end of this year is less than 1,000 units, while the entire Hanoi real estate market is expected to reach 25,200 units, of which class B apartments continue to lead, accounting for 88% of the market supply. Experts say that the current number of housing units is too small and cannot meet the market demand.

Source: https://www.congluan.vn/hai-cuc-doi-lap-cua-thi-truong-bat-dong-san-ha-noi-dai-cat-tim-nha-o-xa-hoi-post334438.html