The supply of social housing and commercial housing was also on the rise, Deputy Minister of Construction Nguyen Van Sinh said during an early 2025 discussion on social housing development and the real estate market. 

The following is a recent interview with the deputy minister.

One of the highlights of the construction sector in 2024 was the positive changes in the real estate market, surpassing the most challenging phase to gain recovery momentum. What is your assessment about the real estate market in 2024?

In 2024, many projects had obstacles resolved and began proceeding, while the housing supply increased sharply and many social housing projects kicked off.

Regarding commercial housing supply, the number of completed projects, newly licensed projects, and projects that can meet requirements to sell housing to take shape in the future increased by 8.6 percent compared to 2023.

Housing supply also increased by 9 percent over 2023, with 48 projects implemented. Of these, 28 projects have been completed which provide 20,200 products. Meanwhile, 20 projects with 22,300 apartments were licensed and kicked off.

Regarding transactions, 137,000 apartments and houses, and 447,000 land plots were transferred, an increase of 38 percent over 2023.

However, many difficulties and problems in implementing real estate projects are still existing in terms of compensation for land clearance, land use shifting, land pricing, land-use fee calculation, planning adjustments, investment policy approvals, amendments to investment policies, and extensions of investment progress, which impact supply and pricing in the real estate market.

The development of social housing garners significant attention and is expected to make a breakthrough. Could you please tell us how the Ministry of Construction plans social housing development?

To date, 645 social housing projects are underway, which can provide 581,000 products. Among these, 96 projects have been completed, 135 projects have started construction, and 414 projects have received investment policy approval.

In 2024 alone, the country completed 28 projects with over 20,000 products, a 46 percent increase compared to 2023 (6,420 products).

Many provinces and cities have completed their urban development planning and reserved land for social housing investments. As many as 1,309 land plots with a total area of more than 9,700 hectares, have been earmarked for social housing development, with significant land reserves in some localities, including HCM City, Hanoi, Dong Nai, Long An, and Hai Phong.

Under the VND120 trillion preferential credit program for social housing, worker housing development, and old apartment building upgrading, commercial banks have committed to provide VND4 trillion, of which VND 2,360 trillion have been disbursed (VND 2,100 billion for developers of 17 projects, and VND198 billion for individual homebuyers at 15 projects).

However, the increase in social housing supply has not met expectations due to difficulties and legal obstacles encountered by localities and businesses in implementation processes.

Moreover, many realtors keep waiting for new laws (Land Law, Housing Law, and Real Estate Business Law), with more streamlined regulations to be promulgated. The disbursement of the VND120 trillion preferential credit package remains slower than desired and needed in practice.

To efficiently implement the social housing development goals set by the government and the Prime Minister, a high level of determination from ministries, sectors, particularly localities, and businesses is required.

The Ministry of Construction (MOC) will continue urging localities to allocate more land for social housing development, accelerate administrative procedure streamlining, and expedite ongoing social housing projects, aiming to meet the 2025 goal of completing 100,000 apartments as tasked by the government and the Prime Minister.

How would you describe the real estate market in 2025?

Although the real estate market still faces numerous challenges, the 2025 real estate market presents various conditions and opportunities for continued recovery and sustainable, healthy development thanks to several factors:

First, the legal framework completed in 2024, will become effective and meet practical requirements.

Second, capital for the market is being gradually unleashed. The government and the Prime Minister have given instructions on flexibly implementing monetary policies, including considering debt deferral, debt rescheduling, and interest rate reductions to alleviate difficulties for businesses. 

Third, social housing development is being actively promoted.  At least 1 million social housing units for low-income people and industrial park workers are included in the 2021-2030 project, including 100,000 products in 2025.

Fourth, efforts to resolve difficulties and obstacles for real estate projects are being made by agencies. 

Fifth, not only the state sector, but private real estate enterprises have also proactively restructured investment resources while launching new ones.

Hong Khanh