Under a new policy direction, Vietnam’s housing system will be divided into four categories: commercial housing, rental housing, official residences and policy housing. Among them, rental housing will be prioritized for development at reasonable prices using state resources.

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

A major shift in housing thinking

According to Hung, although social housing development and housing construction in general have achieved positive results in recent years, the real estate market continues to face several structural challenges.

The first issue is the mismatch between supply and demand. High-end apartment projects continue to account for a large share of new supply, while housing that matches the income levels of most residents remains in critically short supply.

In addition, the market remains heavily focused on homes for sale. The supply of long-term rental housing is still limited and has yet to meet the needs of workers, industrial employees and residents in major urban centers.

Another challenge is the continuous rise in housing prices over many years, with home values now several times higher than average incomes. As a result, homeownership is becoming increasingly difficult for young people and working households.

Current incentive mechanisms are also considered insufficient to attract businesses and investors to the rental housing sector, preventing the segment from growing in line with actual demand.

Faced with these realities, Party and State leaders have introduced new directions for Vietnam’s housing market. One of the most significant changes is a fundamental shift in the way housing development is viewed.

Instead of focusing primarily on commercial housing for sale, future development will simultaneously promote commercial housing, social housing and rental housing. Rental housing, in particular, has been identified as a strategic, long-term segment serving a broad range of residents, especially workers, laborers, civil servants, public employees and members of the armed forces.

Under the new orientation, the housing market will continue to operate according to market principles while benefiting from effective state guidance and management. The State will play an enabling 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 development strategies and public transportation systems. Industrial parks, economic zones, growth centers and transit-oriented urban areas will be prioritized for housing development that is synchronized with infrastructure.

Strong incentives to attract private capital

To turn these policy directions into reality, leaders of the Department of Housing and Real Estate Market Management said the Ministry of Construction is coordinating with ministries, agencies and related organizations to study amendments and additions to the Housing Law, the Real Estate Business Law and other relevant regulations.

The proposed revisions are expected to be submitted to the National Assembly for consideration during its October 2026 session.

Under the proposed framework, the housing system will be divided into four categories: commercial housing, rental housing, official residences and policy housing. Rental housing will be given priority for development through state-backed resources to ensure reasonable rental rates.

Notably, long-term rental housing projects are expected to benefit from a wide range of incentives related to land, finance, taxation and credit. These measures are intended to create strong momentum for attracting private capital as well as long-term investment funds into the market.

For local authorities, the Ministry of Construction has called for an urgent review of housing demand, particularly demand for rental housing and official residences. Provinces and cities are also being asked to review available land resources in urban areas, industrial parks, high-tech zones and rapidly urbanizing districts to proactively prepare clean land funds for rental housing development.

Local governments are encouraged to take the initiative in investing in rental housing projects using state budget resources, while ensuring construction quality and maintaining rental prices that remain affordable for residents.

At the same time, the effective use of local National Housing Fund resources is considered an important solution for creating a large-scale supply of rental housing in the years ahead.

Hong Khanh