Social housing supply to explode from 2026?

Many positive signals

Recently, the Hanoi Department of Planning and Architecture proposed 9 more concentrated social housing areas, with a total planning area of ​​nearly 669 hectares. Before this proposal, Hanoi had allocated budget capital to prepare for investment in 5 concentrated social housing areas, with a total land use area of ​​248 hectares in Dong Anh, Gia Lam, Me Linh, Thanh Tri and Thuong Tin.

Regarding the implementation of the above 5 concentrated social housing areas, the Department of Construction has completed the proposal documents for 4/5 projects with a scale of 203 hectares, more than 0.8 million square meters, and about 12,300 apartments.

At the end of May, at a meeting on the implementation of independent (concentrated) social housing areas in the capital, Chairman of the Hanoi People's Committee Tran Sy Thanh requested that departments, branches and localities must coordinate closely to speed up progress and must commit to starting at least one project by October 1 and ensuring long-term quality.

Land planned for social housing construction in Hanoi (Illustration: Ha Phong).

In addition to Hanoi, the social housing market has welcomed a series of new projects in the past 3 months. Supply of this segment continues to be added in many provinces and cities across the country.

In Hai Phong, 806 social housing units of the Lac Vien 3 Warehouse project in Ngo Quyen district have just been announced as eligible for commercial operation. The project consists of 10 15-storey apartment blocks with 4,456 social housing units and 163 7-storey commercial apartments, along with a synchronous infrastructure system with neighboring residential areas.

In May, the Nhon Phu 2 social housing project in Nhon Phu ward, Binh Dinh province also opened the first phase of sales with 209 apartments. The project is built on a land area of ​​over 3.8 hectares, including 4 independent buildings, 9-12 floors high with a total of about 714 apartments, a population of 2,234 people. The project has a selling price of nearly 12 million VND/m2, equivalent to about 420 - 816 million VND/apartment.

Previously, the real estate market report for the first quarter of this year by the Ministry of Construction showed that, up to now, nationwide, there have been 804 social housing projects implemented with a scale of 573,992 units, of which 376 projects have been completed with a scale of 195,676 units; 127 projects have started construction with a scale of 114,984 units; 301 projects have been approved for investment with a scale of 263,332 units.

In the first 3 months of the year, according to reports from 42/63 localities, 13 social housing projects were completed, started construction and approved for investment with a scale of 16,008 units. Of which, 5 projects were completed with a scale of 2,016 units; 4 projects started construction with a scale of 8,073 units; 4 projects were approved for investment with a scale of 5,919 units.

Also according to the Ministry of Construction, through synthesizing reports from localities, from 2021 to the end of the first quarter of this year, nationwide, 503 social housing projects have been implemented with a scale of 418,200 units, of which: 75 projects were completed with a scale of 39,884 units; 127 projects have started construction with a scale of 114,984 units; 301 projects have been approved for investment policy with a scale of 263,332 units.

Social housing supply to improve from 2025 and "explode" from 2026

According to the Ministry of Construction, the Housing Law 2023, when it comes into effect, will have many new points to encourage the development of social housing. Especially the regulations related to land allocation for social housing funds. Specifically, it will add regulations assigning the responsibility of the provincial People's Committee to allocate enough land for social housing development...

It is expected that in the near future, when some regulations in the new law officially take effect, it will contribute to removing some bottlenecks, creating momentum for this segment to develop more strongly. However, it is necessary to pay attention to whether these new regulations support projects that have been approved and are stuck by previous regulations.

Mr. Nguyen The Diep - Member of the Executive Committee of the Vietnam Real Estate Association - commented that in the coming time, the social housing segment may have a strong breakthrough in supply when new regulations allow projects to be implemented more smoothly and quickly. When the supply of social housing is large, housing prices may "cool down".

Mr. Diep also said that the new laws coming into effect will partly remove the long-standing bottlenecks in the project implementation process, thereby releasing supply, helping to reduce housing prices and stabilize the market. It is forecasted that the supply of social housing will improve from 2025 and the period 2026-2027 will see a "boom" in supply.

According to statistics from the Vietnam Association of Realtors (VARS) in a recent market report, in the period of 2021-2025, the demand for social housing is about 1.24 million apartments, and in the period of 2026-2030 it is 1.16 million apartments. However, although there is still a shortage of supply overall, the situation of "both shortage and unsold" in the social housing segment has not been resolved.

Many real estate experts assess that the development of the social housing segment is recording many positive signals. However, to solve the social housing supply, policies are still needed to remove shortcomings in handling procedures, ensure the rights of participating businesses, speed up project progress, thereby increasing supply to the market.

Source: https://dantri.com.vn/bat-dong-san/nguon-cung-nha-o-xa-hoi-bung-no-tu-nam-2026-20240612092305408.htm