Government Amends Social Housing Policy to Favor Home Buyers

Strategic Insights -

The Government of Vietnam has issued a press release regarding the issuance of Decree No. 261/2025/ND-CP, which amends and supplements several key articles related to social housing policy. The decree aims to create favorable conditions for social housing buyers, including reducing the interest rate for social housing loans to 5.4%/year. The decree also introduces new regulations for calculating the equivalent amount of money that investors must pay to build social housing, including land use fees and the cost of building technical infrastructure systems.

Key Takeaways:

  • Decree No. 261/2025/ND-CP reduces the interest rate for social housing loans to 5.4%/year, making it more affordable for home buyers.
  • The decree amends and supplements several key articles related to social housing policy, including Decree No. 100/2024/ND-CP.
  • Investors must pay an equivalent amount of money to build social housing, including land use fees and the cost of building technical infrastructure systems.
  • The amount paid by investors must be paid into the local budget and managed and used according to the provisions of law on state budget and law on the National Housing Fund.
  • Single people with an average income of not more than 20 million VND/month can buy social housing, and couples with a total average monthly income not exceeding 40 million VND are also eligible.
  • The decree also introduces new income conditions for subjects specified in Clauses 5, 6, and 8, Article 76 of the Housing Law.

Statistics:

  • 5.4%/year: the reduced interest rate for social housing loans.
  • 20 million VND/month: the average income limit for single people to buy social housing.
  • 40 million VND/month: the total average monthly income limit for couples to buy social housing.
  • 20%: the ratio of land use fees for social housing projects, determined according to the provisions of land law.
  • 20%: the ratio of investment cost of building technical infrastructure systems to the total land area of the project, multiplied by the total cost of investing in the construction of technical infrastructure systems.

Sources:

  • The Government of Vietnam, Press Release, "Issuance of Decree No. 261/2025/ND-CP on Amending and Supplementing Several Articles of Decree No. 100/2024/ND-CP on Detailing a Number of Articles of the Housing Law on Social Housing Development and Management."