Deciding to stay in Hanoi to start a business to escape poverty, however, after more than 4 years of working with a salary of less than 12 million VND/month, Mr. Nguyen Dinh Tra (Hai Ba Trung, Hanoi) could not help but feel insecure. With a basic salary, after deducting all monthly expenses, Mr. Tra's savings are not much left.
"I once planned to make an effort to buy an apartment in Hanoi at the age of 30. However, in reality, apartment prices are constantly increasing in both the inner city and the suburbs while my salary remains unchanged.
Not only me, but many other young people who come to the city to start a business also face similar situations when their family has no financial resources and no capital to do business. Many times when I go back to my hometown, people ask me when I will buy a house, which makes me extremely tired and haunted" - Mr. Tra said.
According to Dr. Nguyen Van Khoi - Chairman of the Vietnam Real Estate Association, the escalating housing market has reduced the ability of most people to access housing, especially low-income workers.
Part of the reason comes from the real estate speculation that has pushed up prices, giving rise to "surfing" transactions, lacking transparency. Not to mention, the situation of "shelved" projects is still a big challenge for the market, causing market liquidity and homebuyers' confidence to decline.
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that the high price of real estate hinders the sustainable development of the real estate market. In Hanoi and Ho Chi Minh City, about 70% of the new supply on the market is high-end and super luxury products. Even houses costing over 1 million USD are increasingly appearing, while affordable housing is disappearing.
"High-end houses dominate the market while affordable products are absent, leading to unstable and unsustainable market development," said Mr. Chau.
Speaking to Lao Dong Newspaper, Mr. Vo Hong Thang - Investment Director of DKRA Group said - after a period of continuous price increases, apartment prices are currently at a high level, especially in large cities in the North such as Hanoi. The main reason is that the supply of apartments in the North has been "repressed" for a long time.
To control the increase in primary selling prices of apartment projects, the State plays a key role in removing legal obstacles, speeding up the licensing process and regulating the market. In addition, the State also needs to have support policies to reduce the financial burden on investors to help control the increase in primary selling prices.
From the perspective of the management agency, Ms. Nguyen Thi Phuong Hoa - Deputy Minister of Natural Resources and Environment, said that the Government has proposed a pilot project for investors to negotiate the right to use agricultural and non-agricultural land for commercial housing for 5 years. If approved by the National Assembly at the 8th Session, this pilot resolution will contribute to clearing the supply to the market, helping to cool down housing prices.
