Rental housing plays key role for accommodation needs

Developing the rental housing market is critical to addressing accommodation needs, particularly for young professionals, industrial workers, and low-income households.

- By Ngoc Vy

At the Real Estate Forum 2026 in Hanoi last week, experts stressed that turning rental housing into a key pillar of Vietnam’s property market will require a comprehensive strategy supported by institutional reforms, effective urban planning, and long-term financing mechanisms.

According to Vu Sy Kien, deputy director of the Department of Land Management under the Ministry of Agriculture and Environment, rental housing should be treated as a strategic priority, serving as both a key pillar and a growth driver for Vietnam’s real estate market.

“One of the sector’s biggest challenges is the lack of a clear assessment of rental housing demand and its role within the broader housing market,” Kien said.

He suggested that the government prioritise the use of state-owned land for rental housing projects, with land-use fees waived or kept at a reasonable level in the initial phase to encourage private-sector participation.

“Pilot programmes could focus on young professionals, office workers in urban centres, particularly those living in transit-oriented development (TOD) areas, as well as workers in industrial parks,” he said.

Meanwhile, Dr. Le Xuan Nghia, a member of the National Financial and Monetary Policy Advisory Council, said that public funding has been a cornerstone of rental housing development in many countries.

“If Vietnam wants to rapidly expand its rental housing stock over the next 5-10 years, public investment will be essential,” Nghia said.