The Prime Minister has approved a plan to build more than a million apartments for low income earners in urban areas and workers in industrial parks nationwide for 2021-2030.

The government has done what it can do to help warm up the real estate market. However, realtors have to also take action by slashing selling prices and accepting lower profits, analysts say.

Realtors who specialize in high-end real estate projects should think of adding social housing projects to their business strategies, because the projects ensure sustainability and stability for them.

The lack of affordable social housing has raised whether foreign developers should be allowed to invest in this segment in Vietnam.

The Government has decided to implement a low-interest credit package of about VND120 trillion for social housing development.

In the first two months of the year, 1,895 real estate units left the market, according to the General Statistics Office (GSO).

Sellers cannot sell products and take back their investment capital; many people can't buy because of limited financial capability; and the state has failed to collect tax and land-use fees. Such is the current state of the property market.

The Ministry of Construction has backed off from the VND110-trillion credit package for banks to lend on to developers and buyers of social housing.

A shortage of affordable housing products, a high number of outstanding loans, and many bankrupt real estate firms are some of the problems mentioned at the recent national conference on the Vietnamese real estate market.

Capital city Hanoi is projected to spend US$18.35 billion from now until 2025 on housing infrastructure, according to a development plan recently approved by the city’s People Committee.

The Ministry of Construction has proposed the prime minister lower the target of building social homes for workers and low-income people to just over one million in 2021-2030.

With an average monthly income of VND7.5 million, Vietnamese need to save money for 50 years to be able to buy an apartment with two bedrooms.

While many experts have called for action to rescue the real estate market, others believe that it is necessary to be cautious when pumping more money into the market.

In July 2022, Nguyen Thanh Cuong, 34, completed the purchase of an apartment at Flora Fuji project developed by Nam Long Real Estate. The 65 sq m apartment with two bedrooms sold for VND2.5 billion.

The Government will create a project on housing development, especially for low-income earners, to tackle the supply crunch in the real estate market.

Real estate prices have been staying high, though they have slightly fallen at times at some projects, according to the Ministry of Construction (MOC).

The Ministry of Construction has proposed a social housing stimulus package worth VND110 trillion to house tenants, buyers and developers.

The government has designed a program on developing 1 million social housing units, committing to apply serious measures to complete the program on schedule.

The new interest rate will be applied for loans used for purchasing, and leasing social housing projects and commercial ones having an area of under 70 square metres and VND15 million (US$634) per square metre.

The goal of developing 1 million social housing units may not be feasible.