It takes Hanoians 20 years to buy a house, while people in Ho Chi Minh City take 33.5 years

According to Numbeo, in 2022, the price-to-earnings index in Vietnam will reach 20.5, stable year-on-year. This index in Hanoi is at 20 years, up 2 years compared to last year. However, it is still lower than HCMC’s index at 33.5 years.

Savills said that Hanoi’s index is still higher than some countries in Southeast Asia including Kuala Lumpur (Malaysia), Yangon (Myanmar), or Chiang Mai and Pattaya (Thailand).

The price-to-income ratio is a basic measure of affordability to buy a home. This index is usually calculated as the ratio of median home price to median family income, as measured by years of income.

According to Savills, the selling price of apartments in Hanoi tends to increase from the first quarter of 2019. In the past 5 years, the average primary asking price of Grade B apartments has increased by 8%/year, Grade C by 7%/year and Grade A by 4%/year.

Not only apartments, but also real estate products such as villas, townhouses and townhouses have also continuously increased their primary selling prices since the third quarter of 2021. Specifically, in the first quarter of 2022, the average primary price of a villa was 134 million VND/m2 of land, an increase of 30% after one year. The average price of townhouses is 185 million VND/m2 of land, up 8% QoQ and 73% YoY. With townhouses, the average price is about 323 million VND/m2 of land, up 35% QoQ and 79% YoY.

In Ho Chi Minh City, in the first quarter of 2022, the average selling price of apartments decreased by 14% quarter-on-quarter to $2,730 per square meter due to the temporary suspension of sales of high-priced projects, mainly projects Grade A and Grade C projects. Most primary projects have prices unchanged or increased; Some existing projects have a price increase of up to 6%, while projects with a new phase increase in price by up to 10% compared to the previous period.

Prices in all grades are expected to continue to increase as temporarily suspended projects are expected to reopen for sale in the second quarter of 2022. Some projects for sale in the next phase are predicted to have an increase of up to 15% thanks to the success of the pre-sale and good construction progress.

Many experts and organizations say that house prices are increasingly exceeding people’s ability to pay. In the document sent to the Prime Minister, the Ho Chi Minh City Real Estate Association (HoREA) proposed urgent solutions to solve the shortage of housing supply and reduce house prices to stabilize the market. When aggregate demand is very large, according to the law of supply – demand, housing prices have increased continuously for more than 5 years, reflected in the housing price index of our country more than 20 times higher than income. The average of society makes it difficult for many households and individuals to create housing.

Mr. Le Hoang Chau, Chairman of HoREA assessed, currently, the real estate market is very short of housing supply, especially affordable commercial housing (affordable housing) and social housing. 2 types of houses meet the real needs of the majority of middle-income people and urban low-income people.

The market situation of both supply-demand imbalance and out-of-phase imbalance in the high-end housing segment has been very evident in the last 2 years, when affordable housing only accounted for 1% in 2020. and disappear in 2021 (0%), while high-end housing accounts for 74%.

“In the past time, there have been some signs of fluctuations in the real estate market such as supply-demand imbalance (due to too little supply), market segment mismatch (deviation in housing segment). high-class, tourist real estate), widespread subdivision of plots for sale, virtual fever of land prices, house prices (constantly increasing house prices), taking advantage of land auctions to make profit, taking advantage of the issuance of corporate bonds. All of the above signs of volatility have potential for instability in the real estate market and instability in housing social security”, Mr. Chau said. good.

According to Phong Linh

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