Newest regulations on the sale prices of social housing in Vietnam

Newest regulations on the sale prices of social housing in Vietnam (Internet image)

Newest regulations on the sale prices of social housing in Vietnam

(1) Sale prices of social housing funded by public investment and trade union financial resources in Vietnam

According to Article 86 of the Housing Law 2023 regarding the sale prices, rental prices for purchase of social housing funded by public investment and trade union financial resources are as follows:

- In the case of renting social housing, the rental prices are calculated to cover the maintenance costs of the housing; the cost of recovering the investment in building the housing over a minimum period of 20 years from the date of signing the rental contract.

- In the case of renting to buy social housing, the rent-to-buy price is calculated to cover the cost of recovering the investment in building the housing over a minimum period of 5 years from the date of signing the rent-to-buy contract; maintenance costs are not included as they must be paid by the rent-to-buy tenant.

- Rental and rent-to-buy prices for social housing do not include concessions stipulated in Clause 1, Article 85 of the Housing Law 2023.

- The authorities stipulated in Article 14 of the Housing Law 2023 will decide the rental and rent-to-buy prices for social housing.

- The Vietnam General Confederation of Labor decides the rental prices for social housing funded by trade union financial resources.

(2) Sale prices of social housing not funded by public investment, trade union financial resources

According to Article 87 of the Housing Law 2023, the sale and rental prices for social housing not funded by public investment or trade union financial resources are determined as follows:

- Sale prices for social housing are determined as follows:

+ Include all costs to recover the investment in building the social housing, including: investment costs for constructing social housing works, compensation, support, resettlement costs, investment costs for building technical infrastructure systems, social infrastructure within the project scope carried out by the social housing construction project investor (if any), except in cases where investment construction is for business purposes or must be handed over to the State for management according to the approved project content; loan interest (if any); reasonable and legitimate enterprise costs, including sales organization costs, enterprise management costs, expenses with sufficient invoices, documents directly related to the construction investment project as per legal regulations; standard profit margins stipulated in Point c, Clause 2, Article 85 of the Housing Law 2023;

+ Do not include concessions stipulated in Points a, b, d, g, and h, Clause 2, Article 85 of the Housing Law 2023 and maintenance costs payable by the buyer as per Article 152 of the Housing Law 2023.

- Rent-to-buy prices for social housing are determined according to Clause 1, Article 87 of the Housing Law 2023.

- Rental prices for social housing, including maintenance costs for the housing, are negotiated by the social housing construction project investor and the tenant within the price framework set by the provincial People's Committee.

- The social housing construction project investor builds the sale price, rent-to-buy price plan for social housing ensuring the principles stipulated in Clause 1, Article of the Housing Law 2023 and submits it for appraisal by the specialized agency of the provincial People's Committee at the time the housing is eligible to be sold or rented to buy as per the legal regulations on housing.

- For social housing individually invested in construction, the rental prices must ensure compliance with the price framework set by the provincial People's Committee.

- The Government of Vietnam details Article 87 of the Housing Law 2023.

12 Beneficiaries of Social Housing Support Policies in Vietnam from August 1, 2024

Based on Article 76 of the Housing Law 2023, the beneficiaries of social housing support policies include:

(1) People with meritorious services to the revolution, relatives of martyrs eligible for housing improvement support according to the Ordinance on Preferential Treatment of People with Meritorious Services to the Revolution.

(2) Poor and near-poor households in rural areas.

(3) Poor and near-poor households in rural areas frequently affected by natural disasters, climate change.

(4) Poor and near-poor households in urban areas.

(5) Low-income individuals in urban areas.

(6) Workers and laborers working in enterprises, cooperatives, unions of cooperatives inside and outside industrial zones.

(7) Officers, professional soldiers, non-commissioned officers of the People's Armed Forces, policemen, official, defense workers serving in the army; cipher officers and others working in cipher organizations receiving salary from the state budget.

(8) officials and public employees according to the law on officials and public employees.

(9) Individuals who have returned official housing as stipulated in Clause 4, Article 125 of the Housing Law 2023, except those who had their official housing revoked for violations of the Housing Law 2023.

(10) Households and individuals subjected to land recovery and who have to clear, demolish housing as required by law, and have not been compensated by the State with housing or homestead land.

(11) Students of universities, institutes, colleges, vocational schools, special schools as per the law; students of public boarding ethnic schools.

(12) Enterprises, cooperatives, union of cooperatives in industrial zones.

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