The Ministry of Construction has proposed incorporating rental housing and affordable commercial housing into the law, clearly defining selling prices for each area to increase accessibility for the public.
The Ministry of Construction is currently seeking feedback on the draft Housing Law (amended). One of the new features of the draft is the addition of regulations on rental housing and affordable commercial housing.
The draft defines rental housing as properties invested in by organizations or individuals for rent. The State will play a leading role in establishing the housing fund using the state budget.
The Ministry proposes that eligible tenants include beneficiaries of social housing policies (poor households, workers, the armed forces, civil servants, students, etc.). In addition, officials, civil servants, public employees, and workers are also eligible to rent through the housing stock established by the National Housing Fund.
A mandatory condition for tenants is that they do not own a home, or they own a home in the locality but the average per capita area is lower than the minimum level prescribed by the Government.
Developers of rental housing projects may allocate 20% of the total floor area for commercial and service businesses to generate resources to reduce rental prices. They will also enjoy Value Added Tax (VAT) incentives for revenue generated from leasing.
Regarding rental prices, the Ministry of Construction proposes the principle of calculating correctly and fully all operating and depreciation costs, while excluding incentives from the State.
Previously, General Secretary and President To Lam and Prime Minister Le Minh Hung directed localities to promote the development of rental housing – a segment prioritized for development until 2030. In particular, the Government requested a strong shift in housing development thinking. In addition to housing for sale, Vietnam needs to prioritize the development of rental housing, especially the rental apartment model in major cities, industrial parks, economic zones, key economic regions, and important economic corridors.
Regarding affordable commercial housing, in the draft, the Ministry of Construction defines it as housing built under projects for sale, lease-purchase, or rent under market mechanisms. These products receive mechanism support from the State and must meet price criteria.
The Ministry proposes that the selling and lease-purchase prices of this type of housing be regulated by provincial-level People’s Committees for each area to match citizens’ affordability. However, these prices must still ensure the correct and full calculation of all costs.
Affordable commercial housing may also be subject to transfer restrictions. The drafting agency proposes that buyers or lessees cannot resell the property for at least 5 years from the date of full payment. Additionally, they must be domestic individuals and can only own a maximum of one unit per project.
At the consultation workshop on the draft law held by the Ministry of Construction on July 3, experts and business representatives suggested that standards, conditions, and technical criteria need to be clearly regulated to create a unified legal basis for localities in appraising and approving affordable commercial housing projects.
Some opinions also requested further clarification on incentives regarding land, investment, and finance to encourage businesses to participate in developing social housing and affordable commercial housing.
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