Social housing rental price in Hanoi is nearly equal to 1 month's salary, poor people are 'stunned'

" Not only was I surprised, but I was really shocked because this amount is almost equal to the monthly salary of both my husband and I ," said Ms. Thuy Linh (from Nam Dinh , currently working as a garment worker).

Ms. Linh said that for the past 2 years, due to lack of work in the countryside, she and her husband came to Hanoi and worked together as workers in a garment factory in the suburbs, with a salary of 7.5 million VND/month/person. On days when they work overtime or have a lot of work, they will receive additional allowances. On average, their monthly income is about 20 million VND.

Currently, the family is renting a 30m2 house in Thanh Xuan district. The room has basic furniture and a small attic, the monthly rent is 4 million VND. In the near future, because she wants to bring her 2 children to live with her for easier care, Ms. Linh plans to find a place with a larger area, and at the same time accept a part-time job selling online to increase income, in order to pay the higher rent. And social housing is what her family is aiming for.

" I know that apartment rents are getting more and more expensive, so we want to switch to social housing because this type of housing will be subsidized. Currently, my family is struggling to make ends meet, so we cannot choose a place that is too expensive. Even if we move to a larger place, I want the rent to be only around 5 million VND/month. We can only afford that price, and I expect the social housing rent to meet that criteria ," Linh shared.

However, after learning about the proposed social housing rental price in Hanoi and calculating that it could be more expensive than the current rental price, Ms. Linh was very surprised. " To have enough space for 4 people, we want to rent a 70 m2 apartment. But that will cost nearly 14 million VND, which will consume a month's income for both husband and wife. If we choose a smaller apartment, about 50 m2, it will cost us nearly 10 million VND, which is still too expensive. If this price is approved, my family will probably not be able to afford to rent social housing ," Ms. Linh complained.

Many people are surprised by the expected rental price of social housing in Hanoi. (Illustration photo)

According to Ms. Linh, she has researched and learned that, although social housing buildings with a height of over 30 floors cost more, they are often of good quality and equipped with many interiors because the investor is willing to invest a lot of capital to build them. On the contrary, lower-rise buildings are often invested with less capital, so the quality is not as good, they are far from the center, and the facilities are worse.

" If you rent social housing, you have to choose a good quality project to be able to live there long term. Otherwise, I would rather choose to rent commercial housing, which is both convenient in the inner city and fully furnished, " Ms. Linh compared.

Also in the situation of having to rent a house, Ms. Nguyen Minh Hong - a worker at an industrial park in Gia Lam district - said she had to move many times because of the continuous increase in prices.

Previously, Ms. Hong's family of 5 rented a 50m2 room in a mini apartment for 4.5 million VND/month. Recently, the landlord asked to increase the price to 6 million VND/month, so she had to switch to renting 2 small rooms for 2.5 million VND/month/room.

“ I accept having to rent 2 rooms because if I live in a 50m2 mini apartment, the rent would be 6-7 million VND/month. Although the rental rooms are cheap, there are not many large ones. The extra 500,000 VND/month for the room is already an additional expense for the family ,” said Ms. Hong.

She said her monthly salary as a worker was only about 8 million VND. Her husband was a freelancer with an unstable job, so his total monthly income never exceeded 15 million VND.

With the above total amount of money, they have to manage and save as much as possible to have enough to cover living expenses and raise their children to study. They do not dare to think about buying a house in this area, but only hope to rent at a reasonable price. Having heard about social housing that usually has stable prices, not fluctuating, they have high expectations.

But when hearing about the proposed rental price, Ms. Hong sadly said: " My husband and I cannot afford a rental price of 10 million VND/month. Now, with only 5 million VND, every month I have to worry about balancing my expenses with the small amount of salary left ."

Ms. Hong stated that with this price, one must have an income of about 30 million VND/month to not worry about running out of money. " Low-income people like me cannot afford such high rent. If you calculate the basic expenses in Hanoi, you will know that everything is expensive here. The tuition for my 3 children is basically 6-7 million VND/month, not including extra classes. The food and living expenses for 5 people are also up to 10 million VND/month. The remaining few million VND is probably just enough to pay for the rent, if it is a little more expensive, it will be very difficult for us to manage and negotiate, " she cited.

Many low-income workers cannot afford to buy social housing in Hanoi. (Illustration photo: Government Newspaper)

According to many experts, the proposed rental price is too high compared to the meager income of workers - who are also the ones who need social housing the most.

Mr. Nguyen Quang Huy - CEO of the Faculty of Finance - Banking, Nguyen Trai University analyzed that according to the survey, with an average income per capita of 6,869 million VND/month, the total income of a family of 2 working people can reach about 13,738 million VND/month.

According to financial principles, housing costs should account for a maximum of 30% of total income, or about 4.1 million VND/month, so that households can maintain other essential living needs. But with the current social housing rental price, this cost accounts for more than 100% of an individual's income and nearly 50% of a family with two workers.

" This means that even families with relatively stable incomes still have to pay a large amount for social housing rent. For low- or middle-income groups, this housing cost is a major obstacle to stabilizing their lives. Therefore, the urgent need now is to create solutions to make rental prices more suitable for the income of the majority of workers, " said Mr. Huy.

Mr. Huy suggested that buildings should be built from 5 to 10 floors and not require complex technical systems. Underground areas such as parking lots should not be built because of high construction and maintenance costs, instead, take advantage of above-ground areas. This reduces construction and maintenance costs, helping to reduce rental prices while still ensuring safety and basic amenities.

Or applying modular and prefabricated construction technology helps to reduce costs and construction time. The modules are pre-manufactured and quickly assembled, not only ensuring quality but also reducing material waste. This solution has been applied by many countries and has brought high efficiency in social housing construction.

In addition, using multi-functional furniture such as folding beds, built-in cabinets or folding tables can create flexible spaces for tenants. This not only reduces the cost of purchasing furniture but also saves space, suitable for small apartments, bringing convenience and a more comfortable living feeling for low-income people.

In addition, the State can provide low-interest loans, tax exemptions, or support the provision of cheap land. These incentives help investors reduce the financial burden and can offer more reasonable rental prices to the people.

" The proposed solutions not only aim at reducing rents but also at improving the quality of life for residents. The combination of smart design, modern construction technology and supportive policies from the government will help realize a future where every working person can access stable, sustainable and affordable housing, " Mr. Huy shared.

The Hanoi People's Committee is seeking comments on a draft price framework for renting social housing invested by businesses or cooperatives. This price framework is calculated by square meter of floor space and varies according to the number of floors in the building.
Accordingly, the highest level applies to buildings over 30 floors with a rental price of 198,000 VND per square meter of floor space used per month. If according to Decree 100, which stipulates the standard floor area for each social housing unit in the project is a maximum of 70 square meters and a minimum of 25 square meters, the highest social housing rental price applied to a 70 square meter apartment in a building over 30 floors is up to 13.9 million VND/unit.
The lowest level belongs to buildings under 10 floors with a minimum rental price of 48,000 VND per square meter of floor, equivalent to a 25 square meter apartment with a rental price of 1.2 million VND/month.
In addition, buildings with 11-20 floors have rental prices of 49,000 - 98,000 VND/m2/month.
The draft states that the rental price does not include value added tax; construction maintenance costs; management and operation service prices; costs for purchasing interior equipment; fire and explosion insurance; parking fees; electricity, water and television services.

Chau Anh

Source