HÀ NỘI — The Ministry of Construction is drafting a legal framework to support the development of affordable commercial housing to bring average apartment prices down to VNĐ40-50 million (US$1,530-1,910) per sq.m through land incentives and profit controls for developers, Deputy Minister of Construction Nguyễn Văn Sinh said.

At a recent consultation on the draft revised Law on Housing organised by the Việt Nam Fatherland Front, Sinh said that affordable commercial housing would differ from social housing by allowing larger apartments and greater flexibility in project scale and investment models while still benefiting from government support. Currently, social housing apartments are capped at 79 sq.m.

The Government will provide support to lower development costs for affordable commercial housing projects, Sinh said.

Land for eligible projects would be allocated based on provincial land price tables rather than through auctions or competitive bidding to reduce developers' upfront costs while maintaining State budget revenues.

Construction costs would be fully reflected in selling prices to ensure building quality, while avoiding fixed price caps that could encourage developers to cut corners, he said.

Instead, developers' profits would be capped at around 15 per cent above eligible costs. The ministry estimates that the mechanism could reduce average selling prices to about VNĐ40-50 million per sq.m.

The target price is well below the current market level, with new apartments in major cities typically selling for VNĐ70-100 million per sq.m.

According to a report by property consultancy CBRE Việt Nam, about 16,600 new apartments were launched in Hà Nội during the first six months of 2026, the highest first-half supply since 2020. However, the market remains dominated by high-end projects.

For the second consecutive quarter, no newly launched apartment project in Hà Nội was priced below VNĐ60 million per sq.m. Most new supply was priced between VNĐ80 million and VNĐ110 million per sq.m or above VNĐ120 million, accounting for 30 per cent and 35 per cent of new launches, respectively.

Average primary market prices in the capital reached around VNĐ95 million per sq.m in the second quarter, up 12 per cent from the previous quarter and 21 per cent year-on-year, according to CBRE.

In HCM City, consultancy firm JLL reported around 3,000 new apartment launches in the first half of the year with average primary prices reaching VNĐ98.1 million per sq.m in the second quarter, up nearly 10.5 per cent from a year earlier.

Võ Hồng Thắng, deputy chief executive officer of DKRA Consulting, said that most middle-income households could only afford apartments priced below VNĐ60 million per sq.m.

Housing for all

The latest draft version of the revised Law on Housing has introduced affordable commercial housing as a new category of apartments developed under market mechanisms but eligible for certain Government incentives.

Developers would retain the right to set prices which would include land, construction and other lawful costs plus a regulated profit margin.

Eligible buyers would include individuals qualified for social housing support as well as businesses, cooperatives, public agencies and political organisations.

To discourage speculation, buyers would be prohibited from reselling affordable commercial housing for at least five years after making full payment.

Ngọ Duy Hiểu, deputy president of the Việt Nam General Confederation of Labour, said the draft law should do more to accelerate housing development while ensuring construction quality, sound urban planning, adequate living space and transport connectivity.

He also called for preferential policies to support workers in renting or rent-to-own housing, and for easier access to social housing for disadvantaged groups.

Hiểu said the proposed term 'affordable commercial housing' should be reconsidered to better reflect its nature. He also urged eligibility to be expanded to include employees of public and private organisations as well as self-employed workers, regardless of whether they work inside or outside industrial parks.

The draft law also introduces provisions governing accommodation-oriented properties, including condotels, resort villas, officetel units and commercial townhouses.

Under the proposal, such projects may be built on residential land, commercial and service land, or other eligible land categories.

Developers must ensure that the projects are used for accommodation purposes in line with their approved investment plans and comply with applicable technical standards, population density requirements and other established regulations.

The operation and management of accommodation-oriented properties must also remain consistent with the approved purpose of accommodation.

Maintenance funding for accommodation-oriented properties would be determined under the sales contract, or, if the contract does not specify, by agreement among property owners based on the building maintenance plan required under construction law.

The Ministry of Construction said the Government aims to promote a diversified housing market, including homes for sale, rent-to-own and rental housing suited to the financial capacity of households and individuals, while also supporting the renovation and reconstruction of existing housing. — VNS