In recent years, rising apartment prices across Hanoi have significantly driven up the cost of social housing. Now, with prices reaching between VND 40-45 million per square meter, and some even surpassing VND 50 million, prospective buyers face a formidable financial challenge - securing a few billion VND to get a foot in the door.

Prices triple in five years  

Social housing apartments, intended as affordable housing for low-income families, have traditionally been a saving grace for budget-conscious buyers. However, many of these units, initially sold over five years ago, are now being resold at premium prices - three times the original cost.

Quoc Anh, a resident of Cau Giay District (Hanoi), recently married and is looking for a 60-70m² apartment in Hanoi with a budget capped at VND 3 billion. After exploring commercial housing options and finding prices in the VND 4-5 billion range, Anh turned to social housing projects. But even there, he was met with sticker shock. “A 69m², two-bedroom apartment in a social housing project in Hoang Mai District is now going for VND 52 million per square meter - equivalent to VND 3.6 billion,” he said.

Several other units in the same area are priced at VND 47-53 million per square meter, varying based on apartment location and amenities.  

Quoc Anh noted that these apartments were originally sold for just VND 16 million per square meter, but now have increased to VND 52 million per square meter - a steep increase considering the infrastructure in the area has aged. The apartment Anh viewed was recently purchased by the current seller, who acquired it from the original owner and fully settled the required taxes. "With complete legal documentation, anyone purchasing now only needs about VND 30 million for title transfer and can rest easy," he added.

Middle-income buyers are struggling too

At the Dong Mo Social Housing Project in Hoang Mai District, Hanoi, resident Ba Thanh observed that the current prices exclude many middle-income buyers, let alone low-income families.

With rising prices, Thanh noted, “social housing could soon be as costly as commercial housing.”

According to Nguyen Hoang Nam, CEO of G-Home, the current average price for commercial apartments is VND 60-70 million per square meter. Social housing projects, by comparison, now hover around VND 45-50 million per square meter.

Some social housing apartments in Rice City Linh Dam (Hoang Mai District) now sell for as high as VND 50 million per square meter, even after seven years. “Originally, prices here were VND 15 million per square meter in 2016, but now range between VND 43-50 million,” Nam noted.  

For instance, apartments at 987 Tam Trinh in Hoang Mai District are currently selling at VND 54 million per square meter, or VND 3.76 billion for a 70m² unit - more than doubling from the initial price of around VND 20 million per square meter.

At Ecohome 3 in Co Nhue (Bac Tu Liem district), a 63m² social housing unit is priced at VND 3.2 billion, or over VND 53 million per square meter. When first introduced in 2019, prices at this project were VND 16.5 million per square meter - marking an increase of around VND 30-35 million per square meter in just five years.

At NHS Phuong Canh, resale prices range from VND 32-38 million per square meter. One example is a 65m² apartment listed at VND 2.5 billion, averaging VND 38 million per square meter.

Skyrocketing prices affect longtime residents  

While skyrocketing social housing prices are profitable for investors, current owners say it has made it difficult to find affordable alternatives.

Minh, a resident of Hoang Mai District, purchased a 66m² apartment for VND 1.1 billion at approximately VND 16 million per square meter. Now, with an expanding family and outdated infrastructure, Minh is seeking an upgrade but finds himself limited by the soaring prices. “We’ve been searching, but prices are simply out of reach for our family,” he shared.

Quang Thanh, a real estate agent with 15 years of experience in Hoang Mai District, explained that while social housing prices were initially set to support young families with limited budgets, the resale market has inflated significantly, nearly matching commercial housing prices. “Some people buy, make minor renovations, and then resell at a premium, further pushing prices up,” Thanh noted.

Nguyen Hoang Nam, CEO of G-Home, explained that social housing owners who purchased units over five years ago are allowed to resell legally, provided they pay personal income tax on the sale. “The original policy aimed to help poor groups access housing, which was effective initially. However, those selling should aim for a price more reflective of the actual value,” he said.

Tien Anh