Housing prices are increasing all over the world, people’s ability to pay is decreasing
In Australia, house prices will increase about 10 times their income levels by 2021. In many cities, the median house price is closer to A$3 million. Those who are lucky enough to buy a house often have to ask for the help of a “parent bank”.
In China, house prices in the busiest and most developed cities such as Beijing, Shanghai and Shenzhen are now about 14 times higher than average wages. According to the Lincoln Land Policy Institute, house prices in 2020 in the nation’s tier-2 cities are seven times higher than median wages. In tier 3 to tier 5 cities, the ratio is 5 times. According to Savills, luxury apartments in Tianjin sell for VND200 million per square meter, which is on par with some of London’s most expensive areas, even though incomes in London are seven times higher than in Tianjin.
In the United States, home prices rose to a record high in March, even as rapidly rising mortgage rates sent home sales plunging. Although homes sell for less, home prices are inversely proportional to sales. The average available home price in March rose 15% from a year earlier, to a record $375,300, according to the National Association of Realtors. The main reason why house prices continue to increase is due to limited supply, when only 950,000 homes were listed for sale in March, down 9.5% compared to March 2021. Mortgage interest rates in the US are currently at 5% – back to the highest level since 2011. Experts expect home sales in 2022 will continue to fall 10% compared to last year.
Declining home ownership rates are causing social problems, including inequality and widening the gap between rich and poor, marriage and childbearing rates, which in turn create demographic and economic imbalances. increase the burden on social welfare policies.
Those hoping to own their first home are facing skyrocketing prices, combined with rising rents and meager savings interest rates. Meanwhile, their income has not increased, the economy is difficult, inflation and the cost of living has increased, making their financial resources to buy houses shrink.
In Vietnam, housing prices are also on the rise. The April 2022 report of the Real Estate Association of Ho Chi Minh City shows that the demand for housing is very large, causing housing prices to increase continuously for more than 5 years. Vietnam’s house price index is 20 times higher than the average income of the society. In the last two years, affordable housing accounted for only 1% of the new housing supply in 2020 and disappeared in 2021, while luxury housing units accounted for 74%.
Also according to Cushman & Wakefield, in the first quarter of 2022, prices of real estate segments in Ho Chi Minh City continued to increase. The condominium segment grew 8% QoQ and 27% YoY. The townhouse segment grew 42% year-on-year. House prices in the city. Ho Chi Minh City is currently about 25-26 times higher than the average income of a household, among the 20 cities with the highest house prices in the world.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
