Income and price: The gap is too big
With the average salary of young workers ranging from 10-15 million VND/month in Hanoi today, owning an apartment costing 2-3 billion VND is too extravagant. Simple calculations show that if a young person saves 30% of their monthly income, it will take about 40-50 years to be able to buy an apartment.
If in the past, apartments were considered a reasonable solution for people with average income, now apartment prices have increased rapidly, ranging from 40-60 million VND/ m2 in areas far from the center and 60-90 million VND/ m2 in the center. For a 60m2 apartment, buyers must prepare about 2.5-5 billion VND. This is an unimaginable number for those who have just started working. Meanwhile, real estate with prices of 100-300 million VND/ m2 in many areas has become a "distant dream" even for people with high incomes.
In the past few days, Mr. Nguyen Van Hoang, an office worker at a technology company in Hai Ba Trung district, has searched for about 20 apartment buildings with the hope of buying an apartment on installments. However, with the immediate payment capacity of about 1.5 billion VND (gifted by both families and borrowed), Mr. Hoang had to give up and accept to rent a house for life when the amount is only enough to pay for half of a 60m2 apartment in a suburban district, not compared to Dong Da, Cau Giay, Hai Ba Trung districts. Buying a small piece of land with that amount of money is even more out of reach.
Faced with the difficult reality, many families have had to change their thinking about home ownership. Instead of trying to buy an apartment in the city center, they are looking for alternative solutions. The trend of moving to suburban areas such as Dong Anh, Gia Lam, or even neighboring provinces such as Hung Yen and Bac Ninh is increasing. However, the "price fever" effect has quickly spread to these areas. New apartment projects in the suburbs of Hanoi are currently priced at no less than 35-50 million VND/ m2 , and in many places it has even reached 60 million VND/ m2 . As for land, the suburban areas have unimaginable prices, in some places over 100 million VND/ m2 . This means that even the solution of "migrating" to the suburbs is no longer a feasible option for many young people with average incomes.
The trend of renting a house for life becomes… “fashionable”
This may seem paradoxical, however, it has become a trend that families are choosing in reality. Renting a house has become the optimal solution that most young people living in Hanoi choose. Over time, they accept that they will have to rent a house for life. On social networks, rental groups in Hanoi are becoming a vibrant destination with thousands of interactions every day. These online platforms not only provide information about rental houses but also create a community to share experiences and support each other in finding accommodation that suits their budget.
Typically, in the group “Renting a house in Hanoi” on Facebook with more than 232,000 members and thousands of posts and interactions every day; the posts often revolve around searching and introducing apartments, mini apartments, and houses for rent to meet the diverse needs of renters. Not only that, the group “Renting mini apartments, luxury apartments, and rooms in Hanoi” with the interest of more than 745,000 members also has a very high level of discussion and sharing.
Talking to reporters, Ms. Vi Nguyet Cam, a mini apartment owner in lane 155 Cau Giay street (Cau Giay district) shared: "Currently, I am renting out small studio rooms with an area of about 25 square meters each and prices ranging from 4.8 to 5.5 million VND. Around my mini apartment, there are many large universities, companies and offices, so there are always "no rooms available" because the demand for renting houses of young people here is very high."
In addition, the form of shared ownership (co-living) is also becoming the choice of many people. It is a form of shared accommodation where tenants find each other from friends, acquaintances or through social networks.
Sharing the form of joint ownership, Bui Nhat Linh Thu (23 years old), a marketing employee in Trung Hoa ward, Cau Giay district, said that Thu and two friends are contributing money to rent a 60m2 apartment in Cau Giay district. The cost is divided equally so each person only pays about 3 million/month, suitable for current income.
Ms. Le My Linh (30 years old) is currently renting a house in Khuong Dinh ward (Thanh Xuan district) and said that before, she and her husband only rented a studio apartment of about 28m2 , but since having a small child, they rented a larger house to have more space for the child to play. Therefore, she and her husband decided to invite a friend's family to rent a 3-storey house with an area of each floor of about 40m2 to optimize the rental cost while still having a comfortable space for both families.
While waiting for more practical policies and more stable real estate prices, many young people in Hanoi are having to temporarily put aside their dream of owning their own home. The immediate solution is that renting a house will become a permanent, long-term solution - renting a house for life. This reality is also something that young people should consider and choose according to their budget.
Source: https://hanoimoi.vn/gia-nha-dat-tang-chong-mat-no-ro-trao-luu-thue-nha-suot-doi-697010.html
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