Old social housing prices "escalate"
Social housing is considered a solution to support low-income people to have the opportunity to own houses at reasonable prices. However, in reality, the price of used social housing in the secondary market is "escalating", even on par with many commercial housing projects.
In areas such as Ha Dong, Bac Tu Liem (Hanoi), Hoang Mai,... many social housing apartments are being offered for sale at 50-55 million VND/m2, 2-3 times higher than the initial opening price.
Typically, the Dong Mo Dai Kim social housing project in Hoang Mai district currently has a selling price ranging from 50-55 million VND/m2, a sharp increase compared to the original price of about 15 million VND/m2 when it opened for sale in 2017.
Similarly, social housing apartments at the Rice City Linh Dam project (Hoang Mai, Hanoi) have been in use for more than 7 years, and the current resale price ranges from 45-55 million VND/m2, more than 3 times higher than the purchase price at the time of handover in 2016. When the apartments were opened for sale, the price was only 15 million VND/m2.
Or at the Ecohome 3 Co Nhue social housing project (Bac Tu Liem), the average selling price is currently 50-55 million VND/m2. Compared to the starting price of 16.5 million VND (2019), the price has increased by about 30-35 million VND/m2.
Social housing projects were once considered a “lifesaver” for people with average incomes and limited finances. However, many projects have been open for sale for more than 5 years, and prices have increased sharply, up to 2-3 times higher than the starting price.
This creates a contrasting picture in the market, while investors benefit greatly, real buyers are increasingly having difficulty finding a place to live.
Experts propose solutions
Record price increases are making the Hanoi apartment market vibrant but also full of concerns. Middle-income people are almost pushed out of the “race”, while speculators continue to benefit from sky-high price differences.
Explaining this price increase, experts said that the main reason is the imbalance between supply and demand. The number of newly implemented social housing projects is still very limited, while the demand for housing in this segment is increasing. This has pushed social housing prices in the secondary market to unbelievable levels.
In addition, the regulation allowing social housing transactions after 5 years of use, along with the scarcity of new products, has created conditions for prices to increase dramatically.
Mr. Nguyen Van Hung - an investor in Hanoi - said: "Social housing units with beautiful locations and convenient transportation are currently very sought after. The high prices come not only from real housing demand but also from investors who want to make a profit."
Faced with this situation, many opinions say that stricter control measures are needed to ensure that social housing serves the right subjects.
According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, the fact that used social housing prices are pushed up too high not only goes against the original policy objectives but also puts great pressure on low-income people. He proposed that there should be a binding mechanism so that beneficiaries of preferential policies on social housing do not transfer them for profit after the prescribed period.
In the context of the Government promoting the development of 1 million social housing units in the 2021-2030 period, the story of housing prices in the secondary market poses an urgent problem of how to control supply and maintain the goal of supporting low-income people. Without timely intervention measures, social housing will inevitably become "commercialized", making the dream of home ownership for many people increasingly distant.
