Rules in selling, lease-purchasing, leasing social housing in Vietnam

What is social housing?

Pursuant to Clause 7 of Article 2 of the Law on Housing 2023 (taking effect on January 1, 2025), Social housing refers to houses supported by the Government for use by entities benefiting from housing support programs under the Law on Housing 2023.

Rules in selling, lease-purchasing, leasing social housing in Vietnam (Internet image) 

Rules in selling, lease-purchasing, leasing social housing in Vietnam

Pursuant to Article 88 of the Law on Housing 2023, the rules in selling, lease-purchasing, leasing social housing in Vietnam are as follows:

- Sale, lease purchase, and lease of social housing shall conform to the Law on Housing 2023.

- Developers of social housing investment and construction projects may choose to sell, lease-purchase off-plan housing or sell, lease-purchase, lease existing houses. Developers of social housing investment and construction projects, upon selling and lease-purchasing houses, are not required to perform guarantee obligations for off-plan houses and are not required to go through real estate exchange.

- The sale and lease purchase of off-plan social housing shall conform to requirements below:

+ Dossiers on housing investment and construction projects are produced, approved technical housing design is available, construction permit is produced if necessary;

+ Foundation has been built in accordance with construction laws, investment and construction of traffic, water supply, water drainage, domestic electricity, public lighting of houses to be sold, lease-purchased according to detail construction planning, design dossiers, and approved project schedule have been complete, redemption has been implemented if developers of social housing investment and construction projects mortgage these houses unless buyers, buyer/tenant and mortgagees agree to not require redemption;

+ Provincial social housing authorities have issued written notice on houses eligible for sale and lease purchase, except for social housing whose investment and construction utilizes public investment.

- The sale, lease purchase, and lease of existing social housing of developers of social housing investment and construction shall satisfy requirements below:

+ Investment and construction of technical infrastructures and social infrastructures have been complete according to detail construction planning in areas where houses for sale, lease purchase, lease are located; if developers of social housing investment and construction projects mortgage houses, the developers must redeem the houses prior to selling, lease-purchasing these houses unless the buyers, buyer/tenant and mortgagees agree to not require redemption;

+ Provincial social housing authorities have issued written notice on houses eligible for sale, lease purchase, and lease, except for social housing whose investment and construction utilizes public investment;

+ Houses satisfy requirements under Points b and Point c Clause 1 Article 160 of the Law on Housing 2023.

- Social housing built by individuals for lease shall only be required to satisfy requirements under Article 56 of the Law on Housing 2023.

- Each entity under Clauses 1, 2, 3,4 , 5, 6, 8, 9, and 10 Article 76 of the Law on Housing 2023 is only eligible for purchasing or lease-purchasing 1 social housing. Entities under Clause 7 Article 76 of the Law on Housing 2023 are only eligible for purchasing or lease-purchasing 1 social housing or 1 housing for people’s armed forces.

- Each entity under Clauses 1, 2, 3, 4, 5, 6, 8, 9, 10, and 11 Article 76 of the Law on Housing 2023, at any given time, is only allowed to rent 1 social housing. Entities under Clause 7 Article 76 of the Law on Housing 2023 are only eligible for purchasing or lease-purchasing 1 social housing or 1 housing for people’s armed forces.

- Tenants, buyers/tenants of social housing shall only accommodate themselves and their families during the duration of rent, lease purchase; if tenants, buyers/tenants no longer wish to rent, lease purchase social housing, they shall terminate contracts and hand over the housing.

- Developers of social housing investment and construction projects may sell the housing in accordance with market mechanisms after 10 years from the date on which commissioning is implemented if the projects conform to construction planning, urban planning, and land laws. Said developers of social housing investment and construction projects shall incur land levy in accordance with regulations of the Government and other duties in accordance with tax laws. In respect of social housing that is also public housing, comply with Clause 2 Article 125 of the Law on Housing 2023.

- If sale or lease purchase of social housing violates this Law in terms of eligible entities or eligibility for purchase and lease purchase of social housing, contracts for sale, lease purchase of property shall be void and the buyers and buyers/tenants must hand over the houses to developers of social housing investment and construction projects, social housing authorities; failure to hand over houses shall result in provincial People’s Committees where the social housing in question enforcing repossession of the social housing.

Handling of social housing purchase payment shall conform to civil laws; handling of lease purchase payment shall conform to Clause 1 Article 75 of the Law on Housing 2023; enforced repossession of social housing shall conform to regulations of the Government.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE