Housing prices are getting more and more expensive, what is the solution to the dream of settling down?

With housing prices soaring, what's the solution to the dream of owning a home?

In the first quarter of 2024, the price of new apartments increased by 19% compared to the same period last year. In 2025, prices are likely to continue rising. As a result, the opportunity for low-income earners to own a home is becoming increasingly out of reach.

One difficulty after another

"Owning a new house in the heart of Hanoi or Ho Chi Minh City is now just a dream for the average person, as many houses have now reached the million-dollar mark," said Mr. Nguyen Hoang Nam, General Director of G Home, in the talk show "Successful House Selling Formulas" hosted by Dau Tu Newspaper.

Apartment prices have been steadily rising for several consecutive quarters. Photo: Dung Minh

According to the Ho Chi Minh City Real Estate Association, if buyers accumulate 100 million VND each year, it will take them up to 25 years to own an affordable apartment in the city. Given this situation, financial solutions from developers will be crucial for families to find a place to live. However, these solutions themselves also have many problems.

“Debt grace periods and payment schedule extensions are not yet comprehensive solutions for homebuyers. Typically, customers have to pay installments over 10-15 years. Meanwhile, preferential loan terms only last for about the first 3 years. After that, interest rates will float at a high level,” Ms. Duong Thuy Dung, Senior Director of CBRE Vietnam, shared at the talk show.

However, interest rates are not the only barrier for homebuyers. According to CBRE, the supply of apartments is increasingly declining. In 2023, the number of new apartments in Hanoi and Ho Chi Minh City was only about 8,000-10,000 units. These figures are only one-quarter of what they were before the pandemic.

“With a scarcity of supply coupled with high demand, apartment prices are continuously being pushed up. In the first quarter of 2024, primary market apartment prices increased by 17% compared to the same period last year. In the secondary market, prices also increased by up to 19%. Projects in prime locations even saw increases of 20-30%,” Ms. Duong Thuy Dung shared.

According to the expert's forecast, apartment prices will continue to rise in 2025 due to the limited supply of new units. Notably, high-end and luxury apartments will account for up to 70% of the new supply. This makes home ownership, which is already difficult, even more challenging.

The solution to finding a place to live.

According to Ms. Duong Thuy Dung, to alleviate the burden of home ownership for people, many countries around the world are implementing a lease-to-own model. Instead of selling the property, the developer allows buyers to lease it for a period of 2-3 years. After the lease expires, the buyer has the right to purchase the property.

"For those who are new to the workforce and don't yet have stable jobs, this is an opportunity to help them accumulate credit points to apply for a home loan. In addition, customers will also gain a better understanding of the project after renting for three years," Ms. Dung shared.

Furthermore, in developed countries, developers also build projects specifically for rent. These apartments often have modest floor areas, sometimes even omitting the living room. In return, the project will have common spaces such as libraries, workspaces, etc. Thanks to this optimization, the rental prices of these apartments are usually relatively low. Many people are willing to rent long-term for 20-30 years.

"We should follow global trends and consider renting as normal. There's no need to feel obligated to own multiple properties for our children's future," commented a senior director at CBRE Vietnam.

According to Mr. Nguyen Hoang Nam, the project to build one million social housing units is also a solution that opens up opportunities for many people to find stable housing. In particular, the new Housing Law has "unleashed" many conditions for purchasing social housing, such as relaxing requirements regarding household registration and increasing the minimum income level.

However, Mr. Nam argued that policies need to focus on removing more obstacles for businesses. Citing a real-world example, the General Director of G Home stated that developers wanting to build social housing must allocate 20% of the project area for rent, and only after 5 years are those apartments allowed to be sold. Even so, in reality, people are not very enthusiastic about these apartments.

“In Hanoi and Ho Chi Minh City, the rent for an apartment without amenities is around 100,000 VND/m2/month. In other provinces, it's 30,000 - 50,000 VND. Tenants must meet the eligibility criteria for social housing and must rent for at least one year. Meanwhile, apartments in commercial projects have lower rents and more flexible rental policies,” Mr. Nam compared.

Source: https://baodautu.vn/batdongsan/gia-nha-ngay-cang-dat-do-dau-la-loi-giai-cho-giac-mong-an-cu-d215621.html