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Social housing services are booming and openly promoted across many social media groups. Screenshot.
 
 
 

As property prices skyrocket, supply tightens, and demand surges, Vietnam’s social housing (SH) market - designed to provide affordable homes for low-income residents - is being increasingly distorted by brokerage rings, grey-market deals, and hidden profiteering. Ironically, the very people the policy intends to support are being left behind in the race for affordable housing.

From paperwork to spot reservation: Everything has a price

At the Government’s regular meeting in October 2025, Minister of Construction Tran Hong Minh revealed widespread abuse in the sale of social housing units. Some individuals reportedly reserved spots in housing projects and resold them for a markup of VND 200–500 million (USD 8,000–20,000).

Online forums with tens of thousands of members are teeming with middlemen advertising “full-package” services - from preparing applications to securing guaranteed slots at top Hanoi projects. At the CT3 Kim Chung project, for instance, a basic unit priced at VND 18.4 million/m² (USD 740/m²) is being sold with an additional VND 350 million (USD 14,000) “support fee,” often without contracts - just handwritten receipts.

Even online applications have become a money-making opportunity. At the Rice City Long Chau project in Long Bien District, despite online submission being opened by the developer, many applicants failed repeatedly. This led to the rise of “online filing services,” charging VND 1–10 million (USD 40–400) per application, depending on success guarantees.

Legally banned, but shadow deals flourish

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In their quest for a place to settle down, hundreds of people gathered overnight at the CT3 Kim Chung social housing project registration area in Hanoi to secure a spot for submitting their applications on the morning of November 17. Photo: NVCC.

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On the first day of receiving applications for the CT3 Kim Chung social housing project (Hanoi), the developer invited the police to oversee the process and ensure public order, aiming to prevent brokers from exploiting the policy. Photo: Hong Khanh.

According to lawyer Truong Anh Tu, Chairman of TAT Law Firm, Vietnamese law strictly prohibits transferring social housing within five years of purchase. Yet covert transactions - including deposits, proxy arrangements, or verbal agreements - have become widespread.

He identifies three root causes behind this distorted market:

1.     Excessive price disparity between SH and commercial housing. Social housing prices range from VND 12–30 million/m² (USD 480–1,200), while nearby commercial properties can fetch VND 45–70 million/m² (USD 1,800–2,800). The profit margin is too tempting to resist.

2.     Weak verification systems. Eligibility is based on self-declared information about income, housing status, and priority groups, but cross-agency data verification is absent, creating legal loopholes.

3.     Proliferation of illegal brokers. These agents promise to help clients “secure a unit” via insider connections or falsified priority applications, undermining the official market and opening the door for policy abuse.

“Social housing has become a commodity for speculation,” said Tu. “And the legal ban on early transfers is practically meaningless due to these disguised deals.”

Developers deny involvement

Nguyen Thanh Trung, Director of the CT3 Kim Chung Project Management Board, stressed that the project developer does not work with any agents or brokers. “We sell directly, do not charge support fees, and have asked police to monitor the process to ensure transparency,” Trung affirmed.

Still, even the strictest developers can’t control grey-market activities without systemic coordination between authorities.

When affordable becomes unaffordable

With base prices for new SH units in Hanoi nearing VND 30 million/m² (USD 1,200/m²) and additional under-the-table costs, the total price can reach VND 50 million/m² (USD 2,000/m²) - on par with commercial housing.

Nguyen Vu Cao, Chairman of Khang Land, questions whether this price still aligns with the social purpose of these projects. “Instead of supporting low-income buyers, SH is becoming a financial burden,” he said.

Accountability and structural reform needed

Lawyer Truong Anh Tu recommends three urgent reforms:

·        Publicize winning applications and priority points.

·        Integrate data systems across demographics, taxation, insurance, and land registry.

·        Crack down on covert transactions and assign individual responsibility for each approval.

“Social housing is not an investment channel. It is the fundamental right to shelter for the poor,” Tu concluded. “If speculation and illegal sales continue, the dream of homeownership will remain out of reach for millions.”

He also suggests customized policies for different groups: industrial workers should access homes near factories; young civil servants need smaller homes closer to city centers; vulnerable populations should be supported through rent-to-own schemes. A one-size-fits-all approach, he argues, weakens the effectiveness of any welfare policy.

Hong Khanh