Removing the "bottleneck" of housing for people with average incomes

The gap between the two poles of the market

In the early days of 2026, Mr. Vu Tuyen Hoang (32 years old) working as a civil servant in Ha Dong ward (Hanoi) is concerned about finding a place to settle down.

The total income of both husband and wife is over 40 million VND per month, we are also not eligible to buy social housing, but buying mid-range apartments is very difficult to find. Meanwhile, high-end apartments are readily available, but my husband and I do not have enough money.

This is the common psychology of many people, reflecting the reality: In recent years, the real estate market in Hanoi and Ho Chi Minh City has witnessed a paradox: social housing is in shortage, high-end housing is in surplus, and affordable apartments have almost disappeared from the urban center.

A report by the Ministry of Construction said: The price of apartments, townhouses, villas and land plots (for people to build houses) has a higher increase than ever; the average increase is about 10-15% per year, especially in some periods up to 30%; the increase in housing and land prices is much higher than the average income increase, making it even more difficult for people to access housing and land.

In Hanoi City, the average primary selling price of apartments in 2025 reached 100 million VND/m2, an increase of 40% compared to 2024. In Ho Chi Minh City, the average primary selling price in 2025 reached 111 million VND/m2, an increase of 23% compared to 2024. In other localities, apartment prices in the year tended to increase, but the increase was lower than in Hanoi and Ho Chi Minh City. In 2025, apartment prices increased by 10-15% compared to 2024.

The main supply of housing products is high-end and mid-range segments, lacking real estate products that are affordable housing suitable for the affordability of the majority of people.

For example, in the old Ho Chi Minh City area in 2020, there were only 163 affordable houses, accounting for 1% of the total number of houses put on the market. And from 2021 to June 2025, there are no longer affordable housing types, on the market there are only mid-range and high-end housing types, of which most are high-end housing.

Faced with the above situation, the issuance of a Resolution on piloting the development of affordable commercial housing is necessary and urgent, in order to overcome current inadequacies, ensure stable and healthy market development, and at the same time contribute to the implementation of social security goals and macroeconomic stability" - the Ministry of Construction stated.

Looking at the current market structure, it can be divided into three tiers: social housing (for low-income groups, strict conditions), mid-range commercial housing, and the high-end segment.

Dr. Nguyen Tri Hieu - a financial expert - commented: "The gap between social housing and commercial housing is very large. If there are no policies to encourage businesses to develop appropriate price segments, the market will continue to lose supply and demand balance.

The pilot resolution on developing affordable commercial housing is designed in the direction of reducing indirect costs for businesses, instead of direct subsidies from the budget.

Mechanisms such as reducing land use fees, shortening investment procedures, prioritizing access to credit... if applied reasonably will help businesses reduce costs while still ensuring profits at a reasonable level.

Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association - once analyzed that land costs and legal procedures currently account for a large proportion of apartment costs. If these two factors are removed, selling prices can be significantly reduced without major budget subsidies.

In terms of finance, this is a reasonable direction in the context that the State budget needs to prioritize transportation, healthcare, education and green transformation. Instead of "direct spending", the State plays a role in creating a legal environment and reducing system costs.

Relaxing credit for homebuyers

Dr. Nguyen Duy Phuong, Investment Director of DG Capital, said that the draft content focuses on prioritizing investors but has not mentioned homebuyers. For single people with an income of about 35 million VND/month living in big cities, spending 30-40% to pay monthly home loans, paying continuously for more than 10 years is a large financial burden.

Meanwhile, with the total income of a couple of about 40 million VND/month, this story is even more difficult. After deducting family expenses, it is about 15 million VND left. With the current home loan interest rate of about 9%/year, the remaining cost can only be borrowed about 1 billion VND. Meanwhile, the popular house price on the market is currently at 2-3 billion VND/unit.

To create favorable conditions for homebuyers, according to Dr. Phuong's point of view, the State needs to study solutions to have low-interest and stable loans for a long time. The State needs to design a long-term credit package of 20-25 years, with stable interest rates in the medium term (first 3-5 years) to create peace of mind for homebuyers. Housing supply must be more abundant and the State needs to have policies to limit speculation so that house prices are not pushed up.

Businesses want to reduce capital pressure

Mr. Nguyen Van Dung - Director of Truong Phat Construction Investment Company - said that the most difficult thing for businesses to be proactive is the time to process construction investment procedures. The State needs to review regulations to shorten the time to resolve housing construction investment procedures, helping businesses reduce capital pressure, contributing to reducing housing costs.

In addition, businesses still have to pay land use fees and land rents - which account for a large proportion of the costs that make up housing prices - like other commercial housing projects. Meanwhile, since the beginning of this year, new land prices in many localities have continued to increase sharply, dragging down land-related costs from site clearance, compensation for land recovery, and taxes and fees. The standard profit margin for building affordable housing only 5% higher than social housing can also put businesses at high risk. According to Mr. Dung, to develop affordable commercial housing, there needs to be preferential policies on land use fees and relaxed profit margins for project investors.