Apartment supply is seriously lacking in Hanoi and Ho Chi Minh City.

DNVN - Savills experts said that in both Hanoi and Ho Chi Minh City, the supply of apartments is seriously lacking. The demand for about 50,000 apartments each year, mainly from middle-income people and young households, has not been fully met.

According to Savills research, in the period 2019-2023, real estate prices in Hanoi increased by an average of 6%/year and in Ho Chi Minh City by 3%/year, while personal income increased by only 4% and 3% respectively. This widening gap makes home ownership more difficult than ever for many people.

In addition, legal barriers, problems with developers and delays in issuing housing support policies have made the situation more complicated.

A sustainable real estate market often has a diverse segment, especially the primary type. However, in both Hanoi and Ho Chi Minh City, the supply of apartment types is seriously lacking. The demand for about 50,000 apartments per year, mainly from middle-income people and young households, has not been fully met.

Hanoi will focus on developing primary apartment projects in the coming time.

Ms. Giang Huynh - Director of Research and S22M at Savills commented that both Ho Chi Minh City and neighboring provinces such as Binh Duong , Dong Nai, Long An are facing a shortage of housing supply. In the near future, Ho Chi Minh City will witness an increase in high-end housing projects, while the supply of affordable housing is limited. In contrast, Hanoi will focus on developing primary apartment projects.

This imbalance is due to many factors, including income growth, limited land availability and rising land costs, along with complex administrative procedures in licensing new development projects.

To solve the problem of affordable housing, Ms. Huynh believes that a comprehensive solution is needed, combining the strengths of both the public and private sectors. No single party can solve this difficult problem.

In the context of limited state budget and high interest rates, financing social housing projects is facing many difficulties. At the same time, the private sector is also facing inflationary pressure on input costs. Therefore, effective cooperation between the two sides is urgent.

“The city government should have strong incentives for landowners to work together to create new sustainable residential areas. By making the most of land, combining it with shared facilities and green spaces, we can partly solve the increasingly urgent housing problem.

Close coordination between the government and investors will be the key to turning these ideas into reality,” Ms. Huynh emphasized.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/nguon-cung-can-ho-thieu-hut-nghiem-trong-tai-ha-noi-va-tp-ho-chi-minh/20240930092427671