Decree facilitates social housing development

The 2023 Housing Law, as outlined in Article 83, introduced more specific regulations regarding land allocation for social housing development, addressing the issue of land shortage that has hindered this segment’s growth in recent years. The law also requires provincial People’s Committees to allocate sufficient land for social housing development according to the approved programs and plans.

Accordingly, Decree 100/2024/ND-CP details Clause 2, Article 83 of the 2023 Housing Law, guiding provincial People’s Committees to require the investor of a commercial housing development project to set aside part of the residential land within the project for the technical infrastructure for social housing construction. Alternatively, they may arrange land for social housing development to build technical infrastructure in a different location outside the commercial housing project site within the same urban area or pay an amount equivalent to the value of the land already used to build technical infrastructure for social housing in special-grade, grade I, grade II, and grade III urban areas, in accordance with government regulations to ensure smooth implementation.

Decree 100/2024/ND-CP facilitates low-income people’s access to social housing

Investment procedures related to social housing projects have been significantly streamlined, helping investors save time and implementation costs.

Additionally, Clause 2 of Article 22 in Decree 100/2024/ND-CP specifies in detail components making up the total cost of investment in social housing construction. This serves as the basis for calculating the maximum profit, which is capped at 10 percent of the total cost of investment in social housing construction, in accordance with the 2023 Housing Law.

The project investor can also earn additional profit from the construction of service and trade facilities, as well as commercial housing, which can occupy up to 20 percent of the total residential land area within the project that has been invested in concerning technical infrastructure development.

Along with regulations encouraging investment in social housing development, Decree 100/2024/ND-CP also provides detailed conditions facilitating the access to this type of housing for those with legitimate needs.

Specifically, Decree 100/2024/ND-CP stipulates that citizens are only allowed to purchase or rent social housing items if they and their spouse (if any) do not own a home in the province or city where the project is located, meaning they are not listed on the certificate of land use rights or ownership of assets attached to the land in that area.

Regarding income conditions, single individuals must have a monthly net income not exceeding VND15 million, as confirmed by the agency, unit or enterprise where the person works. In the case of legally married applicants, the combined monthly net income of both spouses must not exceed VND30 million.

The Vietnam Association of Real Estate Brokers believes these new regulations align with the expectations of businesses and the public, especially those with middle incomes who pay taxes to the State. They encourage businesses to invest in social housing projects, contributing to improving the quality of life and promoting the country’s socioeconomic development.

Assoc. Prof., Dr. Dinh Trong Thinh, financial expert, said that easing income conditions to increase the number of people eligible for social housing is reasonable. Currently, housing prices are too high, far exceeding the incomes of the majority of people. The VND15 million limit may align with the upcoming increase in family deduction proposed by the Ministry of Finance, along with amendments to the Personal Income Tax Law to be made in 2026.