Vietnam PM Urges Measures to Lower Housing Prices

GOVERNMENT TAKES URGENT ACTION TO STABILIZE REAL ESTATE MARKET AMID SOARING PRICES

Housing and real estate prices in multiple regions have surged beyond the financial reach of many citizens, driven by a lack of market transparency, speculative pricing, and a severe shortage of affordable commercial housing. Despite accelerated social housing development, supply remains insufficient to meet demand.

PRIME MINISTER ORDERS REVIEW OF LAND USE FEES TO CURB PRICE HIKES
The Prime Minister has directed ministers, heads of government agencies, and provincial leaders to review and revise land use fee regulations to prevent them from artificially inflating housing prices far above income levels. Relevant authorities must urgently establish open, transparent, and investor friendly mechanisms to foster a sustainable real estate market.

STRENGTHENED OVERSIGHT TO ENSURE LONG TERM MARKET STABILITY
The directive calls for stricter monitoring of real estate transactions, continuous market assessments, and timely policy adjustments to guide the sector toward stability. Regulatory bodies are tasked with preventing manipulative practices that distort pricing and supply.

NEW POLICIES TO SUPPORT LOW INCOME HOMEBUYERS
The Ministry of Construction has been instructed to propose market based price control mechanisms while safeguarding state oversight and citizens’ housing rights. Key assignments include:
Developing innovative social housing policies
Launching rental and rent to own programs for low income groups
Finalizing a pilot Real Estate and Land Use Rights Trading Center (in coordination with the Ministries of Natural Resources, Finance, and others) for government approval by October

LOCALITIES MUST PUBLISH UPDATED CONSTRUCTION COSTS
Provinces and cities are required to regularly update and publicize construction material prices and cost indices to reflect real market conditions. Speculation, hoarding, or exploitation of state policies for profit will face strict penalties.

CENTRAL BANK DIRECTED TO PRIORITIZE HOUSING CREDIT
The Governor of the State Bank of Vietnam must implement flexible monetary policies and direct credit toward:
Social housing developers and buyers
Worker housing projects
Old apartment rebuilding initiatives
Affordable commercial housing within citizens’ reach

High end projects or those suspected of price manipulation will undergo rigorous credit reviews. The central bank must also inspect loans secured by real estate assets to ensure objective valuations and legal compliance.

EXPANDED LOAN PROGRAMS FOR FIRST TIME BUYERS
The directive emphasizes accelerating disbursement of housing policy loans and expanding preferential credit for:
Young people under 35 purchasing their first home
Social housing buyers
with favorable interest rates and repayment terms.

LOCAL LEADERS URGED TO ‘ACT, NOT RETREAT’ ON HOUSING TARGETS
Provincial and municipal authorities must expedite projects to meet housing goals on schedule. Key urban and industrial hubs—including Hanoi, Hai Phong, Ho Chi Minh City, Da Nang, Hue, and Can Tho —must prioritize land allocation for social and affordable housing to boost supply.

CRACKDOWN ON MARKET DISTORTIONS
Local governments are ordered to tighten oversight of real estate brokerage activities, preventing the spread of rumors and misinformation that destabilize the market. Violations will face swift enforcement to protect buyers and maintain transparency.