According to data from Directorate Statistics, real income growth in Vietnam remains modest. Specifically, in the first six months of 2024, the average income of workers was 7.5 million VND/month, up 7.4%, equivalent to an increase of 519 thousand VND compared to the same period last year.
However, when compared to the real estate market, the above increase cannot be compared to the "galloping" increase in housing prices in general and apartments in particular. According to data from the Ministry of Construction, apartment prices in the second quarter of 2024 increased by 25% compared to the same period last year.
In the Hanoi market, Ms. Nguyen Hoai An - Senior Director of CBRE Vietnam - said that the selling price of primary apartments in the second quarter of 2024 was nearly 65 million VND/m2, an increase of 30% over the same period in 2023. In the secondary market, prices also increased by 22% over the same period last year.
Ms. Giang Huynh - Director of Research and S22M at Savills - said that the widening gap between income and housing prices makes home ownership more difficult than ever for many people. In addition, legal barriers, problems with developers and delays in issuing housing support policies have made the situation more complicated.
A sustainable real estate market often has a diverse range of segments, especially class B and C products. However, in both Hanoi and Ho Chi Minh City, the supply of these types of housing is in serious shortage. The demand for about 50,000 apartments per year, mainly from middle-income people and young households, is still not fully met.
According to Ms. Giang Huynh, both Ho Chi Minh City and neighboring provinces such as Binh Duong, Dong Nai, and Long An are facing a shortage of housing supply.
In the near future, Ho Chi Minh City will see an increase in high-end projects, while the supply of affordable housing is limited. In contrast, Hanoi will focus on developing Class B projects. This imbalance is due to many factors, including income growth, limited land resources and rising land costs, along with complicated administrative procedures in licensing new development projects.
Ms. Giang Huynh commented that to solve the problem of adequate housing and people's ability to pay, we need a comprehensive solution, combining the strengths of both the public and private sectors. No single party can solve this difficult problem.
In the context of limited state budgets and high interest rates, financing social housing projects is facing many difficulties. At the same time, the private sector is also facing inflationary pressure on input costs. Therefore, effective cooperation between the two sides is urgent.
"The city government should have strong incentive policies for landowners to cooperate to create new sustainable residential areas. By making the most of land area, combining with common facilities and green spaces, we can partly solve the increasingly urgent housing problem. Close coordination between the government and investors will be the key to making these ideas come true," said Ms. Giang.
