Hanoi aims to curb housing prices through new urban model

Hanoi People's Committee Chairman Vu Dai Thang recently inspected two multi-purpose urban development projects in Thu Lam and Dong Anh communes, and the Bac Thang Long Urban City project in Thien Loc and Phuc Thinh communes.

According to Thang, Hanoi has proactively developed a multi-purpose urban development programme as part of its broader strategy for urban management, housing provision and city renewal.

The city has already launched two large-scale multi-purpose urban projects in the former Dong Anh District, designed to create modern and integrated urban areas that meet demand for social housing and resettlement while maintaining quality standards and controlling housing prices.

Thang said both projects occupy strategically important locations within Hanoi’s long-term development plan and are expected to become new growth hubs for the capital.

The developments will be connected to major transport infrastructure, including expressways, urban arterial roads, ring roads and future urban railway networks.

“We see these as transit-oriented urban centres that integrate urban development with public transportation,” Thang said.

Beyond housing, the projects are also designed to provide employment opportunities and sustainable livelihoods for residents.

The developments will incorporate commercial centres, cultural markets, industrial clusters and industrial parks, allowing residents to access both quality housing and stable employment opportunities.

Under a draft interim framework governing multi-purpose urban developments, approximately 40-50 per cent of housing stock will be allocated to social housing, while 30-40 per cent will be designated as commercial housing.

According to Thang, both social and commercial housing projects will be required to reserve a proportion of units for rental purposes, in line with recent directives from Party General Secretary and State President To Lam and Prime Minister Le Minh Hung aimed at expanding rental housing supply.

“The primary objective is to build modern, fully serviced resettlement communities with adequate infrastructure and employment opportunities, making it easier to relocate residents affected by urban development projects,” he said.

Thang stressed that one of the key goals of the model is to help regulate and stabilise real estate prices.

The city plans to impose limits on developers’ profit margins and introduce specific requirements for companies participating in the projects.

“We believe that when implemented on a large scale, these multi-purpose urban developments will contribute to stabilising both the property market and housing prices across the city,” he said.

anoi plans large-scale rental housing fund

Regarding rental housing development, Thang said Hanoi intends to begin construction this month on several rental housing projects, including both publicly-funded schemes and privately-developed projects.

Under the 2024 Housing Law, the previous requirement that 20 per cent of social housing stock be reserved for rental purposes has been removed.

However, Hanoi has chosen to maintain its own requirements, mandating that at least 5 per cent of social housing units be allocated for rent and another 5 per cent for rent-to-own programmes.

The city plans to increase these proportions further in the coming years to rapidly expand the supply of affordable rental housing.

For commercial housing, Hanoi is also developing support mechanisms to encourage private-sector investment in rental housing projects.

“With strong direction from the central government and proactive efforts by local agencies, Hanoi will soon establish a large-scale rental housing fund comprising both social and commercial housing, meeting the increasingly diverse needs of the capital’s residents,” Thang said.