Prime Minister calls for greater housing supply to lower prices

On the morning of February 26, concluding the sixth meeting of the Central Steering Committee on Housing Policy and the Real Estate Market, held online with 34 provinces and centrally governed cities, Prime Minister Pham Minh Chinh emphasized that developing the real estate market and social housing must follow the guiding principle of “accurate assessment, breakthrough thinking, appropriate policy, controlled market, resolved bottlenecks, streamlined procedures, inclusive development, harmonized interests and benefits for the people.”

At the fifth meeting, the Prime Minister assigned 19 tasks to ministries, sectors and localities, including four specific tasks and 15 regular duties related to housing and the property market.

Since then, the Government has issued a Resolution introducing mechanisms to address legal obstacles in social housing development, and a Decree amending and supplementing provisions in housing and real estate business regulations. Localities have reviewed, refined and approved their Housing Development Programs and Plans for the 2026-2030 period.

Relevant ministries and agencies are finalizing proposals to establish a State-run Real Estate and Land Use Rights Transaction Center. At the same time, ministries, sectors and localities are promoting the establishment of a National Housing Fund.

Regarding social housing, under the Government’s Resolution, localities were assigned to complete approximately 158,700 units in 2026. To date, 220 social housing projects have broken ground and are under construction nationwide, totaling nearly 215,000 units - equivalent to 135 percent of the 2026 target.

Cumulatively, 737 social housing projects have been launched, with more than 700,000 units, achieving 70 percent of the target of completing one million apartments by 2030.

At the sixth meeting, the Steering Committee devoted significant discussion to policies for housing aimed at middle-income earners. Delegates noted that the proposal rests on solid political, legal and practical grounds, as many middle-income citizens have housing demand but are excluded from social housing policies while market prices far exceed their incomes.

Participants emphasized that policies for the middle-income segment must be synchronized across planning, land, investment, credit, taxation and investor selection to ensure reasonably priced housing.

Stakeholders are expected to expand supply, adjust market structure and improve access to housing for middle-income earners, thereby contributing to market stability, social security and macroeconomic balance.

The meeting also examined in detail issues such as purchase and lease-purchase pricing, eligibility criteria and income thresholds for beneficiaries, as well as the rights and obligations of buyers in this segment.

Prime Minister Pham Minh Chinh said that following the fifth meeting, the real estate market had recorded many positive results, especially in social housing development, contributing to growth, job creation and livelihoods, while helping maintain political and social stability. Supply and demand are gradually becoming more balanced.

Many localities have met or exceeded assigned targets. Legal institutions continue to be improved, and a housing and real estate database is beginning to take shape and operate, with housing units assigned identification codes.

Ministries, sectors and localities have made considerable efforts to ensure stable housing for citizens, particularly those affected by natural disasters and storms, disadvantaged groups, workers and members of the armed forces. Some localities have established housing funds.

The Prime Minister acknowledged and commended the determination shown by ministries, sectors and local authorities.

However, he also pointed to limitations. While supply has increased, prices have not declined. The quality of supply remains uneven. Six localities have yet to consolidate their Steering Committees.

In some areas, housing funds operate in a largely formal manner. Data sharing on housing and the real estate market among ministries remains inconsistent.

Disbursement under the VND145,000 billion credit program, equivalent to approximately US$5.8 billion, has reached only 12.4 percent. Procedures for certifying income eligibility for low-income urban residents remain cumbersome at the grassroots level. In some areas, property prices have spiked sharply based on planning information.

The Prime Minister called on relevant parties to ensure equal, transparent and appropriate access to housing for all citizens; expand supply across multiple segments; reduce housing prices; simplify and cut administrative procedures; combat corruption, speculation and market manipulation; and complete a real estate database that is accurate, comprehensive, clean, live, unified and shared.

He instructed ministries and localities to accelerate planning work as a foundation for housing and real estate projects; focus on site clearance and land fund creation; develop infrastructure for social housing; review construction material supply to avoid shortages that could drive up prices; and continue reducing administrative procedures and compliance costs for citizens and businesses.

The Prime Minister requested full implementation of conclusions from the fifth meeting; acceleration of the Resolution on social housing targets for 2026-2030; effective implementation of the Decree on the National Housing Fund and completion of local housing funds; and stronger digital transformation to enhance housing and real estate information systems and databases.

The Ministry of Construction was assigned to urgently finalize the proposal for the State-run Real Estate and Land Use Rights Transaction Center for submission to the Politburo; intensify inspection and supervision of localities and enterprises in social housing development; and develop KPIs for monitoring and evaluation.

The Ministry of Public Security and the Ministry of National Defense were tasked with coordinating with localities to implement housing projects for the armed forces and strictly handling illegal brokerage, fraud and manipulation of social housing purchase dossiers.

The Ministry of Agriculture and Environment was instructed to guide the implementation of National Assembly Resolutions and Government Decrees addressing difficulties in land, environmental and construction material laws.

The State Bank of Vietnam was directed to accelerate disbursement of social housing credit packages, including support for young people under 35, while tightening control over speculative real estate credit and focusing on genuine housing demand. Monetary policy must remain flexible and effective to ensure macroeconomic stability and control inflation, while credit institutions must strictly manage lending to the property sector.

The Ministry of Finance was assigned to study and issue real estate bonds, social housing bonds and commercial housing bonds in accordance with the law, ensuring safety and efficiency.

Provincial and municipal People’s Committees were urged to promote real estate market development, particularly social housing, contributing to double-digit growth and social security. They are to accelerate ongoing projects, ensure completion of 2026 social housing targets, regularly inspect investors and expedite projects already under construction.

For projects where investors have been appointed, local authorities must guide and urge investors to complete procedures related to investment, construction and land allocation to commence projects soon; review and approve land lists designated for social housing development.

Localities must allocate sufficient land funds in convenient locations with synchronized technical and social infrastructure, ensure proper investor selection and strictly reserve land for worker housing in industrial zones and 20 percent of residential land in commercial housing and urban projects for social housing development as required by law.

Regarding a proposed Government Resolution to pilot affordable commercial housing for middle-income earners, the Prime Minister instructed the Ministry of Construction and relevant agencies to study expanding beneficiaries of social housing policies, seek opinions from ministries, localities, scientists, enterprises and citizens, and complete the proposal in March 2026.

PV