Selling Social Housing at Market Prices by Investors

Selling Social Housing at Market Prices by Investors is a matter directly related to the rights of buyers and the responsibilities of project development enterprises. Understanding the mechanism for determining social housing selling prices helps transaction participants avoid future risks. The following article by Long Phan Consulting Company will analyze this valuation process and principle in detail.

General principles for pricing social housing

General Principles on Valuation Social housing is a specific real estate product formed from State support policies to solve the housing needs of policy beneficiaries and low-income earners. Therefore, the consistent principle in state management is that selling prices cannot operate according to the free market mechanism. All valuation activities must comply with the legal framework to ensure fairness and affordability for beneficiaries.

Investors of social housing projects enjoy major incentives from the state budget, such as exemption from land use fees/land rent and tax/credit incentives. These financial supports are tools to lower product costs, not to increase profits for businesses. Unlike commercial housing, where the investor has full discretion to decide prices based on market signals and location, social housing is subject to strict control over input costs and output profit margins.

How is the selling price of social housing determined?

The mechanism for determining social housing selling prices has undergone groundbreaking changes since 2025, granting more initiative to investors but accompanied by a strict post-audit mechanism. Valuation no longer depends entirely on prior approval by state agencies but has shifted to a mechanism of self-declaration and accountability.

According to Clause 1, Article 13 of Decree 192/2025/ND-CP (amended by Decree 261/2025/ND-CP), the investor is allowed to self-construct the selling price and lease-purchase price plan. This process requires the participation of an independent consulting unit to verify investment costs and standard profits. Subsequently, the price dossier must be sent to the Department of Construction for public disclosure before opening for sale. This creates a new reality: investors decide the price themselves but must be subject to public supervision and strict auditing afterward.

Prices must still comply with legal principles regarding housing

Although self-decided, the selling price must still be constructed based on the legal method in Article 87 of the Housing Law 2023. Based on Clause 1 Article 22 and Clause 2 Article 32 of Decree 100/2024/ND-CP (amended by Decree 261/2025/ND-CP), the price calculation formula includes actual capital recovery costs plus a maximum standard profit of 10%. Investors are not allowed to arbitrarily set prices based on market scarcity or prime locations for profiteering. The price dossier after verification must be transparently publicized on the electronic information portal of the Provincial People’s Committee and the Department of Construction.

There are mechanisms for inspection and post-inspection

The “post-audit” mechanism prescribed in Article 13 of Decree 192/2025/ND-CP is the most effective tool to protect buyers. Specifically, within 180 days from the date of acceptance and putting the construction work into use, the investor is responsible for performing a state audit or independent audit and finalizing construction investment costs.

• If the audited price is higher than the price in the contract: The investor cannot collect the difference from the buyer.
• If the audited price is lower than the price in the contract: The investor must refund the difference to the buyer.

This regulation eliminates the motive for investors to “inflate prices.”

What penalties will be imposed on developers who sell social housing at market prices?

Based on Article 64 of Decree 16/2022/ND-CP, if the investor commits acts such as: Selling social housing at a price higher than the approved price; collecting extra money outside the contract; or circumventing the law to “inflate prices” like commercial housing, they may be subject to:

• Administrative penalties.
• Forced refund of illegally collected amounts.
• Suspension or revocation of the project.
• Criminal liability consideration in serious cases.

How to identify developers selling social housing at incorrect prices

In the context of high housing demand, many investors or brokerage units may use tricks to sell social housing at prices higher than regulations. The most recognizable sign is the appearance of consulting fees, reservation fees, or price differences that are not directly recorded in the official housing purchase contract. These amounts are often collected through “backyard” companies or intermediary brokers without valid invoices related to the investor.

To verify accurately, clients need to access the electronic information portal of the Department of Construction in the locality where the project is located. According to Article 87 of the Housing Law 2023, the social housing selling price must be publicized after appraisal. Buyers should compare the unit price in the Department of Construction’s notice with the unit price in the contract. If there is a discrepancy, this is a clear sign of selling at the wrong price.

Real estate brokerage consulting services at Long Phan Consulting Company

Given the complexities in regulations regarding the selling price and procedures for purchasing social housing, Long Phan Consulting Company provides services aimed at ensuring transparency in transactions and maximizing the protection of our valued customers’ rights.

Our services include:

• Project evaluation.
• Advice on selling social housing at market prices by investors;
• Verify the legal status, sales conditions, and legitimacy of the price list published by the developer.
• Review the sales contract in detail, identifying unfavorable clauses or hidden fees that violate regulations.
• Advice on re-negotiating with the developer to ensure the transaction complies with legal regulations.
• We represent our clients in conducting transactions in accordance with the law.

Frequently Asked Questions About Selling Social Housing at Market Prices by Investors

Below, Long Phan Consulting Company provides some frequently asked questions regarding the selling social housing at market prices by investors. We invite interested customers to refer to this information:

Are land use fees included in the selling price of social housing?

No. According to the principles for determining the selling price and lease-purchase price of social housing, the investor is not allowed to include government incentives in the cost. Since the investor has been exempted from land use fees and land lease fees for the entire project area, this cost absolutely cannot be included in the selling price to the people.

Legal basis: Point b, Clause 1, Article 87 of the Housing Law 2023.

Can the developer sell the commercial space within a social housing project at market price?

Yes. For the portion of land within the project that is up to 20% of the total residential land area permitted for investment in the construction of commercial, service, and housing facilities, the investor is allowed to operate under market mechanisms. Profits from this portion are accounted for separately and are not limited by the 10% profit margin set for social housing.

Legal basis: Point d, Clause 2, Article 85 of the Housing Law 2023.

If the audit results determine that the actual cost is higher than the contract price, is the investor allowed to collect additional money?

No. In cases where the selling price or lease-purchase price of social housing, as determined by the audit, settlement, and inspection by the Department of Construction, is higher than the price stipulated in the contract, the investor is not permitted to collect the difference from the buyer. This is a business risk that the investor must bear when calculating the initial pricing plan.

Legal basis: Clause 4, Article 13 of Decree 192/2025/ND-CP (amended by Decree 261/2025/ND-CP).

After how long can social housing units be resold at market prices?

Buyers of social housing are only allowed to resell the property at market prices after a minimum period of 5 years from the date of full payment and issuance of the Certificate of Ownership. When reselling after 5 years, the seller is not required to pay land use fees (except in the case of individual houses).

Legal basis: Point e, Clause 1, Article 89 of the Housing Law 2023.

On what basis is the 10% profit margin on the selling price of social housing calculated?

The investor’s profit margin is determined to be a maximum of 10% of the total construction investment cost for the social housing area. This cost includes construction costs, compensation costs, resettlement support costs (if any), reasonable loan interest, and other legitimate business expenses.

 Legal basis: Point c, Clause 2, Article 85 of the Housing Law 2023.

Conclusion

The act of investors selling social housing at market price is not permitted by law and poses many legal risks for both sellers and buyers. To ensure safe and compliant transactions, clients need to clearly understand valuation principles and thoroughly check project information.

If you need in-depth legal support on social housing trading procedures, please contact Long Phan Consulting Company  via hotline 1900636389 for timely and professional assistance.