Social housing expected to cool the housing market amid rising prices

Housing prices, especially for primary apartments, continued to rise in major cities, while workers’ incomes increased slowly. With affordability under pressure, the development of social housing is being positioned as a key measure to rebalance the market and improve access for residents.

Supply expansion to balance the market

Against rising prices, households’ ability to pay has come under pressure. A report from the Statistics Office (Ministry of Finance) indicates that the size of the labor force and the number of employed people in Q1 2026 declined compared with the previous quarter. Average monthly income for workers was about 9 million VND, suggesting limited savings capacity to purchase a home.

In this context, accelerating social housing development is considered necessary to supplement supply, balance the market, and improve housing access. The Ministry of Construction reports some positive progress in the sector.

Project pipeline and progress under the 2021–2030 plan

As of the latest reporting, the Ministry of Construction said there are 737 social housing projects nationwide under construction, with 701,247 units. It also reported 196 projects completed with 170,673 units, 220 projects started construction with 214,948 units, and 321 projects approved for investment with 315,626 units.

Combined, completed, started, and investment-approved projects reached 70.1% of the target set under the 2021–2030 plan to develop at least 1 million social housing units.

Q1 2026 implementation figures

In Q1 2026, 66 projects were assigned to investors with investment decisions issued without bidding, with total investment of 80,572 billion VND. In addition, 33 projects were licensed and started construction, comprising 28,856 units.

The Ministry of Construction also reported 18 projects eligible to sell housing formed in the future, totaling about 7,031 units. Four projects were completed (fully or partially), with a total of 578 units.

Bottlenecks remain

Despite these results, social housing development continues to face multiple bottlenecks, including complex investment procedures, high capital costs, and inflexible beneficiary eligibility rules.

Enhancing social housing policies

To speed up progress and address bottlenecks, the Ministry of Construction has established working groups led by ministry leaders to inspect and urge local authorities. The inspection team recently visited Hue and Da Nang.

Government directives and policy adjustments

Since the start of 2026, the Government and the Prime Minister have directed strong action to complete the policy framework for social housing. Measures cited include Government Resolution 66.15/2026/NQ-CP dated February 13, 2026, addressing difficulties and obstacles arising from laws on social housing development.

The Ministry also referenced Decree 136/2026/NĐ-CP, which amends some provisions of current decrees to loosen access to social housing by adding an additional 5–10 million VND to eligibility.

Eligibility income thresholds

Under the updated rules described by the Ministry of Construction, applicants who are unmarried or declared single have monthly income not exceeding 25 million VND. For unmarried or single applicants with dependent children, the threshold is up to 35 million VND. For married applicants, combined income not exceeding 50 million VND.

Outlook and target for 2026–2030

The Ministry of Construction said it is continuing to accelerate implementation of Resolution 07/NQ-CP on social housing targets for 2026–2030. It also cited the implementation of the National Housing Fund Decree, aiming to achieve the goal of at least 1 million social housing units for low-income people and factory workers.