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House prices in Vietnam are up to 20 times higher than the average income of the whole society!

Recently, the Ho Chi Minh City Real Estate Association (HoREA) has sent a document to the Prime Minister, proposing urgent solutions to drag housing prices that are too high.

According to HoREA, the market is experiencing a shortage of housing supply, especially in affordable commercial housing (affordable housing) and social housing. These are two types of houses that meet the real needs of the majority of middle-income people and urban low-income people, but due to the “shortage of supply” while the total “demand” is very large, housing prices have increased continuously in the past few years. more than 5 years.

Expression is The housing price index of our country is more than 20 times higher than the average income of the society. Meanwhile, compared with industrialized countries, the house price index is only 6-7 times higher than income.

“High housing prices make it difficult for many households and individuals to create housing,” HoREA emphasized. HoREA emphasized.

HoREA added that affordable housing currently accounts for only 1% in 2020 and disappears in 2021 (0%), while high-end housing accounts for 74%. In contrast, the high-end housing segment accounted for 74%. This situation leads to the fact that the state budget revenue from the land and real estate market is not commensurate with its potential, which is clearly shown in the revenue from land use fees in Ho Chi Minh City in the 2016-2021 period. 82,932 billion VND accounts for only 5.9% of the total budget revenue, but in terms of potential, this revenue source is about 10% or less, it is appropriate.

Therefore, HoREA believes that in order to ensure social security for housing, it is necessary to perfect mechanisms and policies to create conditions for the development of social housing and the “income-appropriate housing” of the majority. The number of people in society who are middle-income people and urban low-income people include: cadres, civil servants, state officials, armed force officers…

“In order to have more social housing and “houses at affordable prices”, it is necessary to remove the “obstacles and inadequacies” of a number of current legal provisions and add new mechanisms and policies ( currently not available) to promote the development of social housing and “affordable housing”HoREA expressed.

In addition, in order for the real estate market to develop transparent, healthy, stable and sustainable, it is necessary to review and perfect mechanisms and policies on capital market development, including the money – credit market. Real estate tax, stock market, corporate bond market, go hand in hand with building property tax policy (property tax, because currently only non-agricultural land use tax – residential land with very low tax rate as low as 0.03%). At the same time, it is necessary to change the current way of calculating land use levy by issuing a new tax on the act of changing the planned land use purpose from agricultural land to non-agricultural, residential, and medium-sized land. prevent the situation of “tax on top of tax”, which both contributes to regulating the real estate market, does not reduce state budget revenue, and creates a stable and sustainable source of revenue for the state budget.

https://cafebiz.vn/soc-gia-nha-o-viet-nam-gap-toi-20-lan-thu-nhap-trung-binh-toan-xa-hoi-20220422162153173.chn


Ngoc Diep

Following Economic Life

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