Hanoi's Department of Planning and Architecture has proposed the construction of nine new social housing zones on 668 hectares in suburban districts

Dang Xa Social Housing Zone in Gia Lam District, Hanoi. Photo: Pham Hung/The Hanoi Times

This proposal was highlighted in a recent report by the Hanoi Department of Construction, detailing the progress of social housing projects in the city.

According to the report, Hanoi has five projects with completed investment proposal documents, spanning over 200 hectares and comprising approximately 12,300 apartments. Four of these projects, located in Dong Anh, Me Linh, and Gia Lam districts, are currently under review by the municipal Department of Planning and Investment.

Additionally, the Department of Planning and Architecture has proposed to the authorities the construction of nine new social housing zones in suburban districts, with a total area of over 660 hectares.

The two largest proposed projects are in Chuc Son Town and Tan Tien Commune (Chuong My District). The Chuc Son project covers an area of 169 hectares, featuring buildings of 7-9 stories designed to accommodate about 13,500 residents. The Tan Tien project spans approximately 127 hectares and is intended to house 15,750 people.

At a meeting late last month, Chairman of the Hanoi People’s Committee Tran Sy Thanh mandated that at least one social housing project be started by October 1. This directive aims to address delays in social housing development in the capital.

Hanoi is among the major urban areas with high demand for social housing, yet investment remains limited, according to the Ministry of Construction. By the end of 2025, the city aims to complete three projects with 1,700 apartments, meeting only 9% of the housing needs of low-income workers. However, under the government’s plan to develop at least one million social housing units by 2025, Hanoi is required to complete 18,700 apartments. Since 2021, the city has finished five social housing projects, delivering 5,200 apartments.

This shortage has exacerbated the scarcity of affordable housing in the capital. Over the past two years, Hanoi has only had one social housing project for sale in Nam Tu Liem District, offering just over 200 units.

In May 2023, more than 1,300 low-income individuals entered a lottery to secure the right to purchase nearly 150 units in the first phase of this project, priced at VND19.5 million (US$766) per square meter (including VAT and maintenance fees). At the end of last year, another social housing project was launched in Me Linh District, consisting of four six-storey blocks with approximately 280 apartments.