Research data from the Vietnam Real Estate Market Research and Evaluation Institute (VARS IRE) indicates that by the end of the third quarter of 2025, the apartment price index in Hanoi, Da Nang, and Ho Chi Minh City increased by 96.2 per cent, 72.6 per cen, and 56.9 per cen respectively compared to 2019.
While the average income of workers is only about VND15 million per month ($570), the house price-to-income ratio far exceeds affordability.
According to the institute, although the government has issued many policies to promote social housing development, the implementation speed of the Social Housing Scheme has improved but the results have not met expectations.
By the third quarter of 2025, only 692 projects have been implemented nationwide with a scale of 633,000 units. Of these, the number of completed units only reached more than a quarter of the Phase 1 target.
In response to this situation, VARS IRE and many experts have suggested changing the social housing development model towards the government playing a leading role, from policy planning, land allocation, capital sourcing to implementation organization.
To promote social housing development, the government recently issued Decree 302/2025, establishing the National Housing Fund.
The fund's formation sources are diverse. Notably, the fund's core objective is to create and develop social housing for rent, and it is also allowed to purchase commercial houses for rent to officials, civil servants, and workers.
Mr. Dinh Minh Tuan from Batdongsan.com.vn noted that for the fund to be effective, a diverse capital mobilization mechanism is needed, but the contribution ratio from channels such as the state, banks, businesses, citizens, and international organizations should be regulated.
VARS IRE also suggests that the government's direct involvement in creating social housing, especially rental social housing, is a strategic settlement solution, aligning with international trends. Many countries have successfully implemented this model, such as in Singapore, South Korea, Germany...
In Vietnam, developing the rental housing market is a necessary step. In the context of rising social housing prices, exceeding the financial capacity of many middle-income groups.
However, for renting to truly become a sustainable solution, VARS IRE suggests promoting public-private partnerships (PPP). In this model, businesses participate in project construction, and the government buys back ownership rights or leases them for operation.
Additionally, further research and issuance of regulations on rental housing standards are needed.
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