House prices skyrocket but incomes increase slowly, the dream of settling down becomes an 'illusion'

Housing prices in big cities are climbing while people's incomes are only increasing slightly, causing many people to worry that their dream of settling down will become an 'illusion'.

Housing prices in Ho Chi Minh City have increased sharply in recent times - Illustration photo: NGOC HIEN

The article House prices: Are you guys in heaven? posted on Tuoi Tre Online received many comments from readers.

Many readers believe that it is time for drastic solutions to cool down the housing market. Policies need to address the root cause of the problem, including clearing supply and prioritizing the development of social housing.

Housing prices, don't let the dream become an "illusion" for workers

Referring to the current urban apartment market, reader Ngoc Thanh wrote: "Monthly salaries are increasing slowly, while apartment prices are skyrocketing. Buying a house in Hanoi or Ho Chi Minh City is no longer a "dream", but an "illusion".

Reader Nguyen Thanh Tuan Kiet said that the increase in land prices, material prices, cement, sand, steel, high loan interest rates, and the cost of waiting for legal procedures (still having to pay loan interest) have increased the price of apartments after completion, making them high.

Meanwhile, reader Bui Son raised the issue of high housing prices due to speculation. According to this reader, the compensation for people when doing projects is low, but when urban areas are formed, the prices are very high.

"Authorities need to audit and evaluate the actual costs and profits of those projects to see how speculation causes land and housing prices in Hanoi and Ho Chi Minh City to increase while people's incomes are not high," this reader suggested.

Reader Robert commented that the more difficult the investment procedures are, the higher the price will be. Authorities need to limit investment in high-end projects and prioritize investment in mid-range projects. In fact, high input costs lead to high selling prices, according to the law of supply and demand.

"Some projects are slow to be implemented due to mechanisms and procedures that cause a shortage of supply, while some have high land prices, which makes housing prices high. If we clear the way for a series of "shelved" projects, housing prices will decrease," reader Robert added.

If we continue to develop high-end housing, the prices will continue to be "sky-high".

Reader Phuc Nguyen believes that since the real estate market is identified as the driving force for development, the State should focus on prioritizing resources to develop social housing and expand home-buying conditions for families without homes.

If we continue to focus on developing mid-range and high-end commercial housing, the real estate market will still push prices sky-high, only benefiting interest groups with the excuse of increasing land prices, loan interest pressure...

Not to mention some speculators "manipulating" the market, creating an artificial shortage of supply...

"Meanwhile, people in need of housing cannot afford these sky-high housing prices. The longer this phenomenon continues, the more it will cause economic and social harm and deviate from our State's social security goals," reader Phuc Nguyen analyzed.

Another reader suggested that the State create conditions for businesses to build many social housing projects that meet Singaporean standards, creating a large supply of cheap housing, targeting low- and middle-income homebuyers. At the same time, there should be preferential installment support policies... abundant supply will pull down real estate market prices.

Readers of Happiness suggested that Hanoi and Ho Chi Minh City should urgently deploy and complete metro lines to spread out the population of the cities in four directions. From there, satellite cities will be formed, and more social housing projects, low-cost apartments, and affordable housing will be built.

Will taxes help reduce speculation and surfing?

Reader Nguyen Chinh Liem suggested: To overcome the situation of speculation and surfing in real estate transactions, we must apply a purchase and sale tax based on the time the property is held. The shorter the holding time, the higher the tax rate according to the transaction price ratio.

"To respect the market mechanism and at the same time adjust prices to a reasonable level, there is no other way but to design and apply the most realistic tax law," reader Chinh Liem wrote.

Similarly, reader Nguyen said that if you walk around Hanoi, you will see a lot of abandoned real estate due to speculation. Therefore, to reduce real estate prices, there is no other way but to fight speculation.

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HIEU JIANG

Source: https://tuoitre.vn/gia-nha-tang-vun-vut-nhung-thu-nhap-tang-nho-giot-giac-mo-an-cu-thanh-ao-mong-20250925122340061.htm