Among them, rental housing will be prioritized for development at affordable prices using state resources.

The information was announced by Ha Quang Hung, Deputy Director General of the Housing and Real Estate Market Management Agency, during the Ministry of Construction’s second-quarter 2026 press briefing on June 18.

A major shift in housing policy

According to Hung, despite positive progress in the development of social housing and the housing sector in general, Vietnam’s real estate market continues to face several structural challenges.

The first is the mismatch between supply and demand. High-end apartments continue to account for a large share of new supply, while housing affordable to the majority of citizens remains in severe shortage.

In addition, the market remains heavily focused on homes for sale. The supply of long-term rental housing remains limited and has yet to meet the needs of workers, laborers, and urban residents.

Another issue is that housing prices have risen continuously over the last many years and are now several times higher than average incomes, making home ownership increasingly difficult for young people and working households.

Existing incentive policies have also failed to attract sufficient investment from developers and investors in the rental housing segment, resulting in growth that falls short of actual demand.

In response, Vietnam’s leadership has outlined new directions for the housing market. One of the most notable changes is a fundamental shift in housing policy.

Rather than focusing primarily on commercial housing for sale, the country now aims to develop commercial housing, social housing, and rental housing simultaneously. Rental housing is being identified as a strategic, long-term segment serving a broad population, particularly workers, laborers, civil servants, public employees, and members of the armed forces.

Under the new approach, the housing market will continue to operate under market principles while benefiting from effective state guidance and management. The government will play a facilitating role through legal frameworks, policies, planning, and financial and credit instruments.

Housing development will also be integrated into broader urban planning, land-use planning, industrial zone development, and public transportation systems. Industrial parks, economic zones, growth centers, and transit-oriented urban developments will be prioritized for synchronized housing and infrastructure investment.

Strong incentives to attract private capital

To implement these policies, the Housing and Real Estate Market Management Agency said the Ministry of Construction is coordinating with ministries and relevant agencies to revise and supplement the Housing Law, the Real Estate Business Law, and related regulations. The amendments are expected to be submitted to the National Assembly during its October 2026 session.

Under the proposed framework, housing will be classified into four groups: commercial housing, rental housing, official residences, and policy housing. Rental housing will receive priority support and be developed at affordable prices using state-backed resources.

Notably, long-term rental housing projects will be eligible for a wide range of incentives related to land use, finance, taxation, and credit. These measures are intended to create sufficient motivation to attract private-sector investment as well as long-term institutional funds into the market.

The Ministry of Construction has also urged local authorities to conduct urgent reviews of housing demand, particularly for rental housing and official residences. Local governments are encouraged to assess land availability in urban areas, industrial parks, high-tech zones, and rapidly urbanizing regions in order to prepare clean land banks for future rental housing projects.

Local authorities are further encouraged to directly invest in rental housing using public budget resources, while ensuring construction quality and setting rental rates that remain affordable for residents.

In addition, effective utilization of local National Housing Fund resources is considered a key solution for creating a large-scale supply of rental housing in the years ahead.

Vo Hong Thang, Deputy CEO of DKRA Group, applauding the rental housing development strategy, said a fundamental shift in market development mindset is now required. If Vietnam persistently places the goal of homeownership at the center of all policies, it will be highly difficult to solve the housing puzzle in major urban centers. Rental housing must become a vital component of the market, developed as systematically as housing for sale.

“The most critical factor for an urban area is not how high the rate of homeownership among its citizens is, but whether citizens have access to stable, safe, and affordable housing," Thang noted.

Hong Khanh