A report from Avison Young Vietnam shows that over the past five years, apartment prices in Hanoi , Ho Chi Minh City, and Da Nang have increased by 72%, 50%, and 34% respectively, while average income has only increased by 6-10% per year. By the end of 2025, house prices will be approximately 20 times higher than average annual income.
While prices are rising rapidly, the supply of affordable housing, particularly in the segment below 40 million VND/ m², is experiencing a prolonged decline. Most properties launched in Ho Chi Minh City (formerly) in the first quarter belonged to the high-end and luxury segments. This leaves young people in a dilemma: they don't qualify for social housing, but they also can't afford commercial housing in the city center.
Rising housing prices are making it even more difficult for young people to access housing.
PHOTO: DINH SON
Based on these studies, Avison Young Vietnam states that there are currently three behavioral groups reflecting differences in financial capacity, risk appetite, and life perspectives among young people. Group 1 wants to buy but is cautious; Group 2 accepts a certain level of risk to own a home; and Group 3 chooses long-term rental.
Rental housing and affordable housing will be a mainstay in the coming years.
PHOTO: DINH SON
To improve housing accessibility for young people, Avison Young Vietnam proposes that policies should focus more on supply structure rather than just credit control.
Specifically, the definition of affordable housing and the design of incentive mechanisms are similar to those for social housing. Affordable housing is a segment with low profit margins and long payback periods, while investment costs are constantly increasing. Without support such as shortened approval times, tax incentives, or permission to increase building density to offset costs, businesses will not find it commercially viable to invest systematically and on a large scale.
The legal framework should be clarified to promote the rental housing market. Specifically, laws should be codified regarding the rights and obligations of parties concerning lease terms or price increase mechanisms to protect tenants. Finally, consideration should be given to expanding lease-to-own options for commercial housing to reduce the financial burden on young people with genuine housing needs, in addition to leveraging loan options.
"Today's young people's decision to buy a home is no longer simply a personal choice, but directly reflects the affordability and ownership capacity of the entire market. With a young population and a high rate of urbanization, the demand for housing in Vietnam will not disappear but will continue to be pent up. Positioning the right product, at the right price, in the right location will help businesses maintain a competitive advantage in the long term," Avison Young Vietnam stated.
Source: https://thanhnien.vn/ban-cach-giup-nguoi-tre-mua-duoc-nha-185260529140720104.htm
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