High Rent for Social Housing Comparable to Commercial Properties: A Concern

Currently, the rental price framework for social housing in Hanoi, which is being reviewed by the municipal government, has the highest rental price reaching 198,000 VND per square meter, equivalent to around 14 million VND per month for a 70m² apartment. This price has sparked widespread controversy, with many arguing that it is too high and not in line with the income levels of most people, particularly workers, students, and freelancers, who are the main beneficiaries of social housing.

Comparison with Commercial Properties

According to market surveys, the rental prices for social housing in Hanoi are not significantly different from the rental prices of mid-range commercial properties. For example, in commercial developments such as Phương Đông Green Park, a 55-83m² two-bedroom apartment is rented out for 10-11 million VND per month. On the other hand, if social housing follows the rental price of 99,000 to 198,000 VND per square meter, a typical 55m² apartment would have a rent between 5.4 million and 10.9 million VND per month, which is almost the same as the rent for commercial properties.

This has led many to worry that the rent for social housing will become a heavy burden for low-income families, even though the original purpose of social housing was to support these groups.

Public Concerns

Pham Nam, a worker in Hanoi, shared that his family of four is currently renting a 30m² room for 4 million VND per month. With a total family income of about 15 million VND per month, they are left with very little after covering living expenses. He worries that if the rent for social housing is as high as expected, families like his will be unable to afford it. His concern reflects a broader issue faced by many workers, students, and low-income individuals: the rising cost of living, while housing support does not seem to effectively ease their burdens.

Proposals to Lower Rent and Stabilize the Market

Dr. Trần Xuân Lượng, Deputy Director of the Institute for Market Research and Real Estate Assessment in Vietnam, suggests that to ensure affordable rent for social housing, the government should allocate social housing based on the income levels of the residents. He believes that the government should provide low-rent social housing specifically for low-income groups, workers, and students. Another important suggestion is to clearly differentiate between "housing" and "living spaces." Living spaces refer to short-term rentals that the government can invest in, while housing refers to long-term family residences, which require higher infrastructure costs. Building rental housing may not be economically viable due to the risk of low occupancy rates.

Additionally, Le Hoàng Châu, Chairman of the Ho Chi Minh City Real Estate Association, recommends limiting social housing to buildings with no more than 24 floors, as this would reduce construction costs and, consequently, help lower rent prices. Buildings taller than 25 floors would incur significantly higher investment costs, which would drive up rent prices.

Conclusion

While the development of social housing is a necessary solution to address the housing needs of low-income groups, if rent prices are too high, they will exacerbate the financial burden on residents, especially for those with low incomes. Therefore, reasonable adjustments must be made, taking into account construction costs, the income levels of residents, and government support policies, to ensure that social housing remains an effective and sustainable solution for those in need.