Mr. Le Van Thoai (35 years old, from Ninh Binh) said that despite planning to buy a house, his family is still renting a room in Cau Giay district because house prices are constantly increasing rapidly.
According to Mr. Thoai, after more than 10 years of living in Hanoi with an office job, he realized that there will be a young generation like him who cannot buy a house in Hanoi if prices continue to increase.
"I am wondering whether I will continue to stay and buy a house in Hanoi or return to my hometown to buy land, work and live" - Mr. Thoai said.
According to Lao Dong reporter's research, after a period of continuous price increases, apartment prices of about 4-5 billion VND/unit are becoming a popular buying and selling price in Hanoi. Many people, even with 2-3 billion VND in hand, find it difficult to find a place to live.
Notably, with apartment prices ranging from 50-80 million VND/m2, the market has almost no supply of affordable apartments. This price creates heavy financial pressure for people with average and low incomes, making it increasingly difficult to own a private house.
According to research data from the Vietnam Association of Realtors (Vars), the recommended minimum income to be able to buy an average-priced house in Hanoi is currently about 2.3-10 times higher than the average income of households in the capital.
Vars experts recently commented that the significant difference between real average income and housing prices is making it difficult for the majority of households to own a house in Hanoi today.
Notably, in central districts such as Hoan Kiem, Ba Dinh, Dong Da, Hai Ba Trung, Tay Ho (Hanoi), the gap between the minimum annual salary needed to pay mortgages and the average household income must be up to 10 figures, or about 1 billion VND/year or more.
Suburban areas such as Ha Dong, Bac Tu Liem or Long Bien have more accessible prices but are only suitable for individuals and households with an income of 40 - 60 million VND/month.
In the report on the real estate market in 2024, the Ministry of Construction also said that in large cities, apartment prices have increased significantly compared to 2023, establishing a new price level for all real estate segments.
Accordingly, the affordable apartment segment that was previously priced under VND30 million/m2 has now increased to VND45 million/m2. The mid-range segment, previously priced from 30 - 45 million VND/m2, has now increased to 45 - 70 million VND/m2. The high-end segment was previously priced from 50 - 70 million VND/m2 but now increased to 70 - 100 million VND/m2.
According to the Ministry of Construction, in 2024, apartment prices in some major cities will continue to increase. In Hanoi, apartment prices increased by 40-50% compared to the selling price in 2023, with some projects increasing at a higher level.
