Brian Jeffrey
The new regulation states that after five years of completing payments for social housing units, buyers can sell the property to those in need of housing, provided they have the necessary certificates.
Sellers are exempt from paying land use fees but are required to pay income tax as per the current tax laws. However, if the social housing being sold is a standalone house, sellers must pay the stipulated land use fees according to government regulations and income tax as per tax laws.
Starting from August 1, when transferring social housing units after the five-year period, sellers only need to cover costs such as notarization services, personal income tax, house registration tax, and certificate verification fees like sellers of commercial apartments.
Previously, sellers had to pay 50 percent of the land use fees, which ranged from VND120-200 million for each apartment. With the new rule in place, this fee is no longer applicable.
There are very few social housing projects available for sale in the market, leading to higher prices for apartments in these projects that meet the transfer requirements.
Projects like Dai Kim Building and Rice City Linh Dam social housing projects have been in use for over five years and meet the criteria for transfer.
For example, at Dai Kim Building in Hanoi’s Hoang Mai district, initial prices were below VND15 million per sq m, but have risen to VND40-42 million per sq m for subsequent sales.
Similarly, apartments at Tay Nam Linh Dam social housing project in Hoang Mai district were initially sold at VND13 million per sq m in 2016, but are now priced at VND42-44 million per sq m.
In Long Bien district, Rice City Song Hong apartments are now offered at VND35-38 million per sq m, compared to the opening price of VND13 million per sq m six years ago.
The most significant price surge has been seen at Ngo Thi Nham social housing project in Ha Dong district. Apartments that were priced at VND8 million per sq m over a decade ago are now selling for VND35-37 million per sq m, marking a fourfold increase.
Dang Duy, director of a real estate trading floor in Ha Dong, noted a rapid increase in housing demand, particularly for affordable options.
