Housing prices are too high, authorities need to have answers for the people

" We civil servants don't know how many decades we have to work to buy a house ," Ms. Nguyen asked while speaking at the Forum "For the real estate market to develop healthily and sustainably" organized by Hanoi Television on December 4.

Ms. Nguyen emphasized that recently, the real estate market in some areas has seen unusual developments, especially the situation of land and housing prices increasing rapidly, far exceeding the actual value and income of the people. This not only causes market instability but also directly affects the macro economy and puts great pressure on low-income people in accessing housing.

Ms. Nguyen said that people face many difficulties when housing prices are too high, so the authorities need to have satisfactory answers and solutions.

Sharing the same view, Mr. Nguyen Quoc Hiep - Chairman of the Vietnam Association of Construction Contractors - also commented that real estate prices have never been as high as they are now. If an official uses all his salary, it will take 27.3 years to buy a house, and if he uses 1/3 of his salary, he will need to save up to 80 years to buy a house.

Authorities need to answer people about high housing prices. (Photo: Minh Duc).

According to Mr. Hiep, the recent increase in housing prices has many reasons such as: large invisible costs, increased land costs, increased labor and materials. Mr. Hiep cited: " Many of our projects take up to 14 years to construct, who will calculate the invisible costs for the entire 14 years for us? ".

Mr. Hiep also expressed that land price is always an important component of price. real estate when accounting for about 30%. Therefore, if land prices are high, housing prices will hardly decrease, although we know that land prices are related to budget revenue, we must balance the comprehensive development of the economy with budget revenue and people's interests. Up to now, there has been no specific and satisfactory solution to this problem.

Another reason for high housing prices was also pointed out by Mr. Hiep, which is due to the imbalance between segments and this depends on the investor. To find a project and complete construction investment procedures, businesses have to work very hard, so they usually want to achieve the highest efficiency and choose the high-end segment because it meets that criterion. Meanwhile, the social housing segment usually only brings 15% profit, so it is less attractive.

Mr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association, also commented: In 2025, the institution will be drastically amended, untying many projects that are stuck in the market, releasing a large number of projects, increasing the real estate supply. In the third quarter of this year alone, the number of new projects entering the market increased sharply, the new supply in the market reached hundreds of thousands of products. In the fourth quarter, the supply will continue to increase, equivalent to the supply of normal years 2018 - 2019.

However, the quality of supply is problematic, there is a lack of affordable housing supply. The market is showing signs of price increases, the selling prices of most projects are in the high-end and super high-end segments. Only 5-6% of the market supply is low-cost housing, mainly social housing.

Notably, some projects were previously designed to provide mid-range housing, but due to project delays, increased interest costs, and increased land use fees, they have now been forced to increase their selling prices to the high-end segment.

Commenting on whether a real estate bubble will appear or not, Dr. Nguyen Tri Hieu affirmed that this risk can occur when supply increases, inventory increases but the majority of people still cannot access housing, with current housing prices being 20-30 times higher than people's income.

Source: https://baolangson.vn/gia-nha-qua-cao-co-quan-chuc-nang-can-co-cau-tra-loi-cho-dan-5066969.html