Social housing rental price in Hanoi is nearly equal to 1 month's salary, poor people are 'stunned'

" I was not only surprised but also really shocked because this amount is almost equal to the monthly salary of both my husband and I, " said Ms. Thuy Linh (from Nam Dinh, currently working as a garment worker).

Ms. Linh said that for the past 2 years, due to lack of work in the countryside, she and her husband came to Hanoi and worked together as workers in a garment factory in the suburbs, with a salary of 7.5 million VND/month/person. On days when they work overtime or have a lot of work, they will receive additional allowances. On average, their monthly income is about 20 million VND.

Currently, the couple is renting a 30m2 house in Thanh Xuan district. The room has basic furniture and a small attic, the monthly rent is 4 million VND. In the near future, because she wants to bring her 2 young children to live with her for convenient care, Ms. Linh plans to find a place with a larger area, and at the same time accept a part-time job selling online to increase income, in order to pay the higher rent. And social housing is what her family is aiming for.

" I know that apartment rents are getting more and more expensive, so we want to switch to social housing because this type of housing will be subsidized. Currently, my family is struggling to make ends meet, so we cannot choose a place that is too expensive. Even if we move to a larger place, I want the rent to be only around 5 million VND/month. We can only afford that price, and I expect the social housing rent to meet that criterion ," Linh shared.

However, after learning about the proposed social housing rental price in Hanoi and calculating that it could be more expensive than the current rental price, Ms. Linh was very surprised. " To have enough space for 4 people, we want to rent a 70 m2 apartment. But that would cost nearly 14 million VND, which would eat up a month's income for both husband and wife. If we choose a smaller apartment, about 50 m2, it would cost us nearly 10 million VND, which is still too expensive. If this price is approved, my family probably won't be able to afford to rent social housing ," Ms. Linh complained.

Many people are surprised by the expected rental price of social housing in Hanoi. (Illustration photo)

According to Ms. Linh, she has researched and learned that, although social housing buildings with a height of over 30 floors cost more, they are often of good quality and equipped with many interiors, because the investor is willing to spend a lot of capital to build them. On the contrary, lower-rise buildings are often invested with less capital, so the quality is not as good, they are often far from the center, and the facilities are worse.

" If you rent social housing, you have to choose a good quality project to be able to live there long term. Otherwise, I would rather choose to rent commercial housing, which is both convenient in the inner city and fully furnished, " Ms. Linh compared.

Also in the situation of having to rent a house, Ms. Nguyen Minh Hong - a worker in an industrial park in Gia Lam district - said she had to move many times because of the continuous increase in prices.

Previously, Ms. Hong’s family of 5 rented a 50m2 room in a mini apartment for 4.5 million VND/month. Recently, the landlord asked to increase the rent to 6 million VND/month, so she had to switch to renting 2 small rooms for 2.5 million VND/month/room.

“ I accept having to rent 2 rooms because if I live in a 50m2 mini apartment, the rent would be 6-7 million VND/month. Although rented rooms are cheap, there are not many large rooms. The extra 500,000 VND/month for the room is already an additional expense for the family ,” said Ms. Hong.

She said her monthly salary as a worker is only about 8 million VND. Her husband is a freelancer with an unstable job, so his total monthly income never exceeds 15 million VND.

With the total amount of money, they had to manage and save as much as possible to cover their living expenses and raise their children. They did not dare to think about buying a house in this area, but only hoped to rent at a reasonable price. Having heard about social housing, which usually has stable prices and does not fluctuate, they had high expectations.

But when hearing about the proposed rental price, Ms. Hong sadly said: " My husband and I cannot afford a rental price of 10 million VND/month. Now, with only 5 million VND, every month I have to worry about balancing my expenses with the small amount of salary left ."

Ms. Hong stated that with this price, only people with an income of about 30 million VND/month can afford to not worry about running out of money. " Low-income people like me cannot afford such high rent. If you calculate the basic expenses in Hanoi, you will know that everything here is expensive. The tuition for my 3 children is basically 6-7 million VND/month, not including extra classes. The food and living expenses for 5 people are also up to 10 million VND/month. The remaining few million VND is probably just enough to pay for the rent, if it is a little more expensive, it will be very difficult for us to manage and negotiate, " she cited.

Many low-income workers cannot afford to buy social housing in Hanoi. (Illustration photo: Government Newspaper)

According to many experts, the proposed rental price is too high compared to the meager income of workers - who are also the ones who need social housing the most.

Mr. Nguyen Quang Huy - CEO of the Faculty of Finance - Banking, Nguyen Trai University analyzed that according to the survey, with an average income per capita of 6,869 million VND/month, the total income of a family of 2 working people can reach about 13,738 million VND/month.

According to financial principles, housing costs should account for a maximum of 30% of total income, which is about 4.1 million VND/month, so that households can maintain other essential living needs. But with the current social housing rental price, this cost accounts for more than 100% of an individual's income and nearly 50% of a family with two workers.

" This means that even families with relatively stable incomes still have to pay a large amount for social housing rent. For low- or middle-income groups, this housing cost is a major obstacle to being able to stabilize their lives. Therefore, the urgent need now is to create solutions to make rental prices more suitable for the income of the majority of workers ," said Mr. Huy.

Mr. Huy suggested that buildings should be built from 5 to 10 floors and not require complex technical systems. Underground areas such as parking lots should not be built because of high construction and maintenance costs, instead, above-ground areas should be utilized. This reduces construction and maintenance costs, helping to reduce rental prices while still ensuring safety and basic amenities.

Or applying modular and prefabricated construction technology helps reduce costs and construction time. Modules are pre-manufactured and quickly assembled, not only ensuring quality but also reducing material waste. This solution has been applied in many countries and brought high efficiency in social housing construction.

In addition, using multi-functional furniture such as folding beds, integrated cabinets or folding tables can create flexible spaces for tenants. This not only reduces the cost of purchasing furniture but also saves space, suitable for small apartments, bringing convenience and a more comfortable living feeling for low-income people.

In addition, the government can provide low-interest loans, tax exemptions, or support the provision of cheap land. These incentives help investors reduce their financial burden and can offer more reasonable rental prices to the people.

" The proposed solutions not only aim to reduce rents but also aim to improve the quality of life for residents. The combination of smart design, modern construction technology and supportive policies from the government will help realize a future where every working person can access stable, sustainable and affordable housing, " Mr. Huy shared.

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