“According to a statistic, the average housing price in Vietnam is 24 times the average annual household income.
(VARS) assessed that the apartment price index in Hanoi in 2023 increased by approximately 38% compared to 2019.
VARS data also shows that in recent years, apartment prices have been growing at an average annual rate of two digits. In the past year alone, the apartment price index in Hanoi increased by 16% compared to the beginning of the year. This index in Ho Chi Minh City has also entered a growth cycle since Q3/2023 due to the slowing decline in prices of high-end projects in the secondary market.
Prices of primary condominiums nationwide remain high as most new projects are priced above 40 million VND per square meter.
The average housing price in Vietnam is 24 times the average annual household income. Illustrative photo.
In Hanoi, both used and new apartment prices have risen sharply. Even in areas tens of kilometers away from the city center, apartment prices are being advertised at 60-70 million VND per square meter.
According to Ms. Đỗ Thu Hằng, Senior Director of Research and Consulting at Savills Hanoi, the reasons for the continuous sharp increase in Hanoi’s apartment prices include high construction costs and infrastructure development pushing up real estate prices. In addition, legal obstacles continue to hinder the housing supply.
New housing supply is scarce and high prices are also challenges. In 2023, the new housing supply recorded the lowest level in a decade with over 10,000 units.
According to experts, the first factor to improve the housing price level is to enhance the market supply. The development of social housing at affordable prices will significantly reduce the average selling price of condominiums.
In response to the irrational product structure, since the beginning of the year, the Prime Minister has instructed the Ministry of Construction to guide enterprises to restructure segments, lower product prices, and implement appropriate, timely, and effective solutions to restructure segments for those in real need, social housing, worker housing, and low-income individuals.
Demand for worker housing is increasing sharply.
Owning a home is nearly impossible for low-income workers without support. The question is how to enable poor workers with difficult circumstances to access social housing?
Mr. Dương Văn Quý from Bình Tân District, Ho Chi Minh City, said: “With our current income, we accept long-term renting. If there are larger rooms available in the project, we also accept long-term renting, similar to how we stay in boarding houses, which cost between 3 – 5 million VND per month.”
“With my income, I can afford to buy a house below 800 million VND, paying a down payment of 30 – 40%, hoping for state support to borrow an additional 300 – 400 million VND. Then, I will pay a monthly installment of 5 – 6 million VND from my savings,” Ms. Nguyễn Ngọc Hân from the worker dormitory in Vĩnh Lộc Industrial Park, Ho Chi Minh City, shared.
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Statistics from businesses in Vĩnh Lộc Industrial Park, Ho Chi Minh City, show that the average income of skilled workers is from 12 – 13 million VND upwards, while for entry-level workers, it is guaranteed to be at least 6 million VND per month.
Mr. Diệp Nam Hải, General Director of Cholimex Food, Vĩnh Lộc Industrial Park, Ho Chi Minh City, said: “Currently, Cholimex Food has rented out 100 houses in the accommodation area for workers, accommodating 200 workers. This only accounts for 5% of the total workforce of the company, with most living in boarding houses.”
According to a survey on social housing by the Private Economic Development Research Board, up to 57% of workers need to rent or buy social housing, commercial housing, and nearly half of this group specifically needs social housing.”
