Real estate experts suggest solutions to reduce housing prices in Ho Chi Minh City

(NLDO) - Housing prices in Ho Chi Minh City are constantly climbing, the solution to the housing problem lies not only in selling prices, but also in planning and population dispersion.

According to the latest published data, the Ho Chi Minh City Housing Price Index (Savills Property Price Index - SPPI) published by Savills Vietnam continued to increase by 3 points quarterly and 8 points annually, reaching 134 points, the highest level since the index was recorded. Primary selling prices increased by 7% compared to the same period last year, mainly thanks to new projects launched for sale in the old District 1 and District 2, while secondary prices also increased across the board, especially in the East and South of the city.

The real estate market in Ho Chi Minh City has recently benefited from public infrastructure investment and low interest rates, but is still under great pressure due to limited supply. The absorption rate in the market only reached about 45%, equivalent to more than 2,400 successful apartment transactions in the quarter. High prices have caused many homebuyers to turn to neighboring provinces such as Binh Duong and Long An , where housing supply is more affordable and land funds are abundant.

Housing prices in Ho Chi Minh City are increasing continuously, the solution is not just price.

Savills Vietnam believes that the housing market in Ho Chi Minh City continues to maintain a stable growth momentum thanks to sustainable real housing demand and strong investment in infrastructure. Fundamental factors such as urban planning, legal procedures and new financial support mechanisms are the key to balancing supply and demand and controlling housing prices in the long term. In addition, population dispersion is considered a fundamental solution to reduce pressure on the central area, while creating conditions for sustainable urban development.

Ms. Cao Thi Thanh Huong, Senior Manager of Savills Vietnam Research Department, said: “The issue of home ownership is not only about the buyer's ability to pay, but also about the country's socio -economic policy planning. The State cannot directly intervene in the selling price strategy of enterprises but should support by removing legal obstacles, planning new economic zones, investing in infrastructure and promoting the process of uniform urbanization to spread out the population.”

The proposal to establish a national housing fund is still being studied and is expected to be implemented in the near future. This model has been effectively applied in Singapore and South Korea, where people can borrow to buy houses with low interest rates and long terms, while participating businesses can enjoy investment incentives and access to planned land funds. This approach helps both buyers and sellers have motivation, thereby leading the market to a more balanced and stable state.

Savills Vietnam believes that when infrastructure, planning and financial mechanisms are implemented synchronously, Ho Chi Minh City will have the conditions to thoroughly solve the problem of population dispersion, balance supply and demand and stabilize long-term housing prices. Expanding urban space in the direction of regional connectivity not only helps redistribute population density, but also creates room for development for segments suitable for real home buyers.

"To solve the housing problem at its root, we need to start with urban policies and planning, and not just look at this as a business story of real estate enterprises," Ms. Huong emphasized.

Source: https://nld.com.vn/chuyen-gia-bat-dong-san-goi-y-giai-phap-giam-gia-nha-tai-tp-hcm-196251012101201105.htm