The Vietnamese real estate market, especially the apartment segment, has been witnessing a sharp increase in prices recently. This has caused many people, even with 3-4 billion VND in hand, to still have difficulty finding a suitable place to live.
According to Lao Dong Newspaper reporters, the affordable apartment segment is completely absent from the market, while mid-range apartments are increasingly scarce. In early 2024, the market started with an average price of about 65 million VND/m2. However, after only two quarters, the price exceeded 68 million VND/m2 and continued to climb in the last months of the year. New projects launched this year focused on the high-end segment in areas such as Nam Tu Liem, Cau Giay and Gia Lam, Dong Anh with prices regularly exceeding 70 million VND/m2.
Commenting on the apartment segment, Mr. Vo Huynh Tuan Kiet - Director of CBRE Vietnam's housing marketing department - said that in the fourth quarter of 2024, the primary selling price of apartments in Hanoi reached an average of 72 million VND/m2, an increase of 36% over the same period last year and 12% over the third quarter of 2024.
This increase makes it difficult for many first-time homebuyers, especially young families, to access the market. This means that with 3-4 billion VND, homebuyers do not have many options, they can only own a modest-sized apartment, used for many years, or have to accept a location far from the center. Therefore, many first-time homebuyers, after a long time of searching, have had to suspend their plans because the price is beyond their financial capacity.
Ms. Ngoc Van (33 years old, Nam Tu Liem, Hanoi) shared that after many years of saving, she and her husband planned to buy an apartment with a budget of 3 billion VND. However, when researching the market, she realized that apartment prices had skyrocketed, far beyond her family's ability to pay, so she had to postpone her plan to buy a house due to escalating prices.
“With 3 billion VND, I can only buy an old apartment of about 40 square meters, but there are not many in the inner city districts, so I have to look to the suburbs. This is not suitable for my family's needs, so I have temporarily stopped my plan to buy a house to recalculate the plan in the near future,” Ms. Van shared.
Ms. Thu Ha - an office worker in Hanoi - also said: "My husband and I have saved 4 billion VND and want to buy an apartment of about 70 square meters. But when searching, the selling price is always beyond our financial capacity, or suitable apartments are all old apartments that have been used for many years and are too far from the center."
In the context of rising apartment prices, owning a house with a budget of 3-4 billion VND is becoming difficult as apartment prices continue to rise. This not only makes it difficult for middle and low-income people to own a house, but also reduces the sustainability of the market. Cooling down housing prices has become an urgent requirement to ensure people's access to housing and stabilize the economy.
One of the solutions to reduce real estate prices in Hanoi is to promote the development of social housing.
Dr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association - said that social housing is an important direction to reduce pressure on housing prices in the market. In addition, it is necessary to step up the removal of legal obstacles in projects to unclog supply in the market.
