Vietnam proposes stricter rules for social housing resale

The Vietnamese government has proposed amendments to the Law on Housing aimed at preventing policy exploitation regarding social housing. Under the new draft, buyers who have fully paid for social housing would only be permitted to resell the property to other eligible social housing beneficiaries or back to the original developer after a five-year period. The maximum resale price would be capped at the original contract price.

This proposal marks a significant shift from current laws, which allow owners to transfer social housing to any buyer via market mechanisms after five years. Additionally, the proposal suggests tightening rules for lease-purchase social housing, where owners might be required to terminate contracts and return the property if they no longer have a need for it.

To increase transparency, all social housing sales, lease-purchases, and rentals are expected to be updated in a centralized housing and real estate market database. While the measures aim to ensure housing reaches intended low-income groups, some experts, such as Le Hoang Chau of the Ho Chi Minh City Real Estate Association, have suggested extending the restriction period to between seven and ten years to better balance policy integrity with the rights of citizens whose financial situations improve over time.