The social housing market is witnessing serious irregularities: agents reserving spots to sell to real buyers, inflating application fees, charging for online submissions to reselling products for hundreds of millions of VND, or undermining the policy’s purpose of supporting low-income groups. 

In response, the PM and the Ministry of Construction have ordered local authorities to strengthen inspections and strictly deal with all forms of profiteering.

Lawyer Truong Anh Tu, president of TAT Law Firm, said that although the law prohibits transferring social housing within five years, disguised transactions still take place through deposits, authorizations or verbal agreements.

Having followed social housing policies and the housing market for years, he said it is a common phenomenon.

The lawyer pointed out three causes behind distortions in the social housing scheme.

The first is the significant price gap compared to commercial housing. “Many social housing projects are selling for VND12–30 million per sqm, while commercial units nearby range from VND45–70 million per sqm. This huge gap turns social housing into assets for trade, despite the transfer ban,” he said.

The second issue is the approval process based on self-declarations. Declared information, such as housing status, income and priority groups, needs verification, yet the lack of interconnected databases creates loopholes that allow individuals to bypass rules and legitimize their applications.

Brokers are the third factor driving profiteering. Many people openly make reservations, claim to have ‘internal connections’ (with competent agencies), or promise priority placement. This shadow market is thriving and competing directly with the official market. According to the lawyer, this is a clear sign of policy manipulation.

Under the Housing Law 2014 and related decrees, social housing can only be transferred after full payment and after the five-year minimum period. However, the lawyer warned that disguised transactions render this rule ineffective in practice, creating legal risks for end buyers who could lose both deposits and the right to own social housing.

No filing through agents or intermediaries

At the third meeting of the central steering committee on housing and real estate policies on November 11, PM Pham Minh Chinh emphasized the need for transparency and prevention of misconduct, including hoarding, price manipulation, speculation and profiteering in the review, sale and rental of social housing.

Hanoi’s social housing segment has recently become active again as a series of new projects have been launched, with prices ranging from VND18.4 to 29.4 million per sqm.

Luyen Van Phuong, deputy director of the Hanoi Construction Department, said the transparent oversight and anti-profiteering measures have been applied since early this year. The department has issued detailed guidelines on selling, renting and rent-to-own procedures, ensuring residents follow legal requirements.

Authorities have reminded households and individuals applying for social housing to fill out forms according to the templates under circular 05/2024 by the Ministry of Construction.

Applications must be submitted directly to the developer, not through agents or intermediary real estate platforms. “We have publicly listed all submission locations on the department’s information portal and on the official websites of each project’s developer. Residents must not submit documents through any unauthorized individuals or organizations,” Phuong said.

The department also requested the Hanoi police to instruct commune-level police where projects are located to detect and handle agents illegally collecting or filing applications on behalf of applicants.

Many applications anticipated

To make social housing more accessible to the public and prevent exploitation, the Department of Construction has posted detailed information about each social housing project, including location, selling price, rental price, time and locations for direct application reception.

Phuong said that when receiving a proposal from an investor, the Department reviews and immediately publicizes it on the electronic information portal so that people can prepare their applications.

In the announcement, the authorities continue to warn people not to submit applications through intermediary platforms, not to place deposits, and not to give any money to any organization or individual impersonating the investor. 

At the same time, all organizations and individuals are strictly prohibited from exploiting the social housing policy and the needs of the people to collect money or deposits illegally.

By the end of this year, some social housing projects in Hanoi will begin receiving applications for purchase, rental, and rent-to-own. Due to high demand that may lead to an overload, the Department recommends that people regularly monitor the Department of Construction's website to avoid missing the reception window.

Hong Khanh