The decree (referred to as Decree 261) revises income conditions by changing the threshold for those eligible to buy or lease-purchase social housing.

Specifically, low-income urban residents, civil servants, public employees, and unmarried or single workers can now qualify if their average monthly income does not exceed VND20 million.

For those raising children under 18, the maximum monthly income is VND30 million. For married couples, the combined monthly income must not exceed VND40 million.

Additionally, provincial-level People’s Committees are allowed to adjust income coefficients to reflect local realities and issue incentive policies for families with three or more dependents.

Income eligibility is assessed based on the 12 months immediately prior to the time of verification by the competent authority.

Under the previous rules stipulated in Decree 100/2024, the income cap was VND15 million/month for single individuals and VND30 million/month for married couples.

According to Pham Thanh Tuan, a lawyer of the Hanoi Bar Association, the updated income levels are appropriate given current price and living cost fluctuations. This expands access for civil servants, public employees, workers, and low-income urban residents.

He also noted that allowing local adjustments and prioritizing larger families reflects progress in social welfare policy.

The flexible mechanism allowing local adjustments and prioritizing large families is a progressive step in welfare policy.

Besides income conditions, the new decree changes the authority verifying income for those without labor contracts.

According to Decree 261, low-income urban residents without labor contracts (such as street vendors) will now have their income verified by local police where they reside or temporarily stay, using national residency data.

Previously, this was handled by commune People’s Committees.

Lawyer Tuan noted that assigning police verification streamlines and aligns with reality. However, as police primarily manage residency data, not income, there’s still a risk of bureaucratic “ask-give” practices.

Preferential loan policies for purchasing or leasing social housing at the Bank for Social Policies are also adjusted.

The loan interest rate for individuals buying social housing is reduced to 5.4 percent per year, with overdue interest at 130 percent of the loan rate.

If rate adjustments are needed, the Bank for Social Policies will coordinate with the Ministry of Construction and related agencies to propose changes to the Prime Minister for consideration and decision.

For loans signed before October 10, 2025, at the Bank for Social Policies, borrowers can amend contracts to apply the new interest rate to both principal and overdue balances.

Currently, the loan rate equals the 6.6 percent per year set for poor households by the Prime Minister.

“Reducing the rate from 6.6 percent to 5.4 percent significantly eases the financial burden for low-income earners, facilitating access to social housing policies. 

“The ability to revise existing contracts reflects fairness, humanity, and encourages people to confidently pursue home ownership,” lawyer Pham Thanh Tuan said.

Hanoi social housing

In related news, amid unusually high social housing prices, Deputy Minister of Construction Nguyen Van Sinh urged the Hanoi People’s Committee to inspect and clarify causes, ensuring prices comply with regulations.

Currently, Hanoi has six social housing projects under construction, totaling over 4,400 units. Two additional projects with more than 2,100 units have been assigned to developers by the city.

The city is also reviewing 29 new project applications, covering 70 hectares, equivalent to more than 28,000 social housing units.

Ha Quang Hung, Deputy Director of the Housing and Real Estate Market Management Department (Ministry of Construction), said several projects developed by Viglacera and HUD are progressing on schedule.

Meanwhile, some projects lag, notably one by the Bic Vietnam and Him Lam Capital joint venture, at risk of missing 2025 completion plan.

At an October 8 meeting with the Hanoi People’s Committee on social housing progress, Sinh praised Hanoi’s proactive planning but urged stronger oversight and urgency.

“It’s not just about starting or approving projects; the city must focus on early topping-off, completion, and eligibility for sales. Crucially, apartments must be real, with real value, serving those with genuine housing needs,” Sinh stressed.

Ministry leaders expressed concern over record-high social housing prices in Hanoi, unsuitable for supporting low-income earners.

“High prices may stem from weak developer capacity, prolonged timelines raising costs, or policy exploitation to inflate prices. Tight control is needed to ensure accessibility,” Sinh said.

Hanoi aims to supply about 17,300 apartments from 16 projects in 2021-2025.

Tam An