Social housing rentals in Hanoi to rise later this month

THE HANOI TIMES — Starting April 14, the rental price of social housing in Hanoi will range from VND48,000 (US$1.86) to VND198,000 (US$7.67) per square meter per month.

The new rental rates are outlined in Decision No. 27, issued by the Hanoi People's Committee on April 3, which sets rental limits for social houses across the city.

According to the decision, apartments in social housing buildings of up to 10 floors will be rented at between VND48,000 ($1.86) and VND96,000 ($3.72) per square meter per month.

For buildings with 11 to 20 floors, rents will range from VND55,000 ($2.13) to VND110,000 ($4.26) per square meter per month.

Buildings with 21 to 30 floors will have rents ranging from VND75,000 ($2.91) to VND150,000 ($5.81) per square meter.

The highest rent range, from VND99,000 ($3.84) to VND198,000 ($7.67) per square meter per month, applies to public housing buildings with more than 30 floors.

According to Decree 100, issued by the government in July 2024, the floor area of each public housing unit must be between 25 and 70 square meters.

Based on the new rental prices, monthly rent for a social housing unit will range from about VND1.2 million ($46.50) to VND13.9 million ($538.66), depending on the apartment’s size and the building’s height.

Rental rates are exclusive of taxes and incidental costs such as VAT, building maintenance charges, service and management charges, furniture and household equipment, fire and explosion insurance, parking charges, and the cost of utilities such as electricity, fuel, and water.

The city's decision applies to investors, owners, management boards, operating units, tenants, and persons or organizations involved in the management and use of social housing. It does not apply to worker housing in industrial zones, government-funded social housing projects for the armed forces, or projects where the rent is agreed upon independently between the landlord and tenant.

The newly issued pricing framework provides a reference point for investors and tenants to negotiate rental prices for social housing projects that are not funded by the state budget or trade union finances but still receive support and incentives under housing regulations in Hanoi.

Previously, rental prices were set under Decision No.25, issued on November 5, 2019, by the municipal government. Under that policy, investors had to propose rental and rent-to-own prices to the Hanoi Department of Construction.

The department would then coordinate with the Hanoi Department of Finance to review the prices and submit them to the city government for approval. Once approved, investors could officially offer rental or rent-to-own prices, but not above the approved limits.