In the past 5 years, the supply of affordable housing products (under 25 million VND/m2) has decreased sharply, while the mid- to high-end housing segment in the market is quite surplus. High-end products for investment and speculation purposes are increasingly dominating the market.
Worryingly, this imbalance causes housing prices to increase, making home ownership increasingly difficult for low- and middle-income people, because housing prices far exceed their financial ability to pay.
In a recent market report, the Vietnam Association of Realtors (VARS) said that housing products are becoming less diverse due to a serious imbalance.
In the first 9 months of the year, market supply remained strongly differentiated with 70% being apartments. Of which, the high-end segment (over 50 million VND/m2) and luxury segment (over 80 million VND/m2) dominated, with 70%.
The trend of high-end and luxury housing dominating the market has been increasing since the beginning of the year. Compared to the third quarter of 2023, luxury housing has doubled, while affordable apartments have tended to decrease.
The mid-range segment (from 25 - 50 million VND) is concentrated in suburban cities, even spreading to provincial markets such as Bac Giang, Hai Phong, Binh Duong, Dong Nai...
Many experts say that if investors focus on developing the affordable housing segment, they can access a large market. In particular, they will balance the market and create a solid foundation for long-term development.
Sharing at the workshop “Vietnamese sausagey cash flow into Southern real estate: Identifying investment opportunities”, Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS), said that affordable housing projects are always of interest to society.
To meet market demand, with each investment and construction project, the biggest goal of the enterprise is not to optimize profits by all means, but importantly, each project must have a meaningful contribution to the sustainable development of society.
Also on this issue, sharing with Lao Dong reporter, Mr. Le Nhu Thach - Chairman of Bcons Group - said that about 60-70% of current housing demand is in the low-cost segment. This shows that people, especially those with low and middle incomes, are in dire need of housing solutions that suit their financial capabilities.
However, the market is lacking affordable housing projects, making it difficult for many people to find a place to live. To effectively implement affordable housing projects, according to Mr. Thach, planning and design must be based on the buyer's ability to pay.
“Normally, we launch 40m2 apartments for about 1 billion VND and 60m2 apartments for about 1.5 - 2 billion VND. We apply optimal and smart design with full living space and utilities for users,” Mr. Thach shared.
According to Mr. Thach, focusing on the low-cost housing segment will help investors access a large market, creating a solid foundation for long-term development.
