Hanoi is set to witness a major wave of affordable housing as the city approves a series of new social housing projects for the 2021-2025 period.

With many developments breaking ground in 2024 and more expected in 2025, the influx of lower-cost housing could be a turning point in the city’s real estate market.

The Hanoi People’s Committee recently issued an updated list of housing and urban development projects for the city’s five-year housing plan.

Among the 72 newly approved projects, eight are social housing developments covering a total floor area of 255,700 square meters, equivalent to 1,580 apartments.

These projects are concentrated in Thuong Tin District (five projects), Long Bien District (two projects), and Hoang Mai District (one project).

Notable developments include:

The social housing project at Alley 218 Linh Nam (Hoang Mai District), with a total investment of $33 million, expected to deliver 500 apartments.

A social housing project for government workers in Ngoc Thuy, Long Bien District, providing 452 apartments, slated for completion in 2028.

A large-scale project in Ngoc Thuy and Thuong Thanh, Long Bien District, with 450 units and an investment of $32 million, expected to be completed by 2030.

Additionally, Hanoi has adjusted the planning of seven previously approved social housing projects, including the Tay Nam Kim Giang 1 urban area in Hoang Mai District, which is set to be implemented by 2027.

A surge in social housing developments

Since late 2024, Hanoi’s affordable housing market has received a boost from newly licensed and recently started projects.

Among the notable developments:

Udic Eco Tower (Tan Trieu, Thanh Tri District): 440 apartments, breaking ground in December 2024.

Social housing complex in Uy No, Dong Anh District: 466 apartments across four 9-story buildings, starting in December 2024, expected completion by October 2026.

CT1 apartment block in Thuong Thanh, Long Bien District: 600 apartments, with construction permits issued in November 2024.

CT3 housing project in Kim Chung, Dong Anh District: 1,104 apartments, set to begin construction in early 2025.

Hanoi is also accelerating the approval process for five large-scale social housing projects across Dong Anh, Gia Lam, and Me Linh districts, covering a total area of over 200 hectares, with an estimated 12,000 apartments in the pipeline.

Strict measures to enforce affordable housing development

Experts note that Hanoi’s apartment prices have surged dramatically in 2024, affecting both new and secondary markets. To curb further price hikes, authorities are prioritizing the supply of lower-cost housing.

According to the Ministry of Construction, Vietnam is expected to complete over 100,000 social housing units by 2025. The government is intensifying efforts to fast-track construction and ensure these projects meet deadlines.

The ministry has urged local authorities to:

Closely monitor ongoing projects to ensure completion in 2024-2025.

Expedite land allocation and investment approvals for social housing developments.

Enforce the 20% land allocation rule, requiring commercial real estate projects to allocate land for social housing. Developers who fail to comply risk having their land reclaimed for redistribution to new investors.

With these measures in place, Hanoi’s real estate market is set for significant changes, offering hope for a more balanced and accessible housing landscape.

Hong Khanh