Identifying 4 barriers that make it increasingly difficult for people to buy housing

In the recently published report "Real estate for real residents: Needs and solutions", Mr. Duong Long Thanh, Vice President of the Vietnam Young Entrepreneurs Association, Founder and Chairman of the Board of Directors of Thang Loi Group, stated that the pressure of housing prices increasing faster than income is the core problem that makes the dream of owning a home for many people increasingly out of reach.

He cited that in 2010, a house in Ben Cat (formerly Binh Duong ) was only about 300 million VND, workers with an income of 5-7 million VND/month could save up for 5-6 years to buy a house, but now this is almost impossible.

- Ảnh 1. — Real estate developer Nam Long meets the needs of middle-income people.

4 main barriers

According to Mr. Duong Long Thanh, there are four main barriers that make it difficult for people to access housing.

First, house prices have risen faster than incomes over the past decade. Average house prices have risen 12-20% per year, while incomes have risen only 6-8%. This gap has persisted for many years, causing a significant decline in the ability of workers to buy houses.

Second, the products on the market do not meet real needs. Many projects pursue high-end segments, large areas, expensive materials, leading to high selling prices. Meanwhile, real needs focus on moderate-sized apartments, adequate utilities, safety and convenience.

Third, input costs are escalating. Housing prices are pushed up by legal fees, taxes, land and construction material prices, not to mention the pressure from interest rates.

Fourth, access to credit is difficult as deposit and lending interest rates increase, along with regulations tightening capital flows into real estate.

3 main solutions

From the above challenges, Mr. Thanh believes that the market needs to return to its core value: housing must serve the housing needs of the people. To narrow the housing gap, he proposed a series of solutions at three levels.

At the State level, it is necessary to continue to improve policies, reform the law and increase the supply of affordable housing and social housing. Along with that, there are policies to support first-time home buyers and simplify procedures to reduce costs and risks for both businesses and people.

At the local level, planning needs to be geared towards the benefit of the people, developing urban areas according to the "15-minute compact urban" model, where residents can fully access essential services within a short travel distance. This requires synchronous investment in the transport infrastructure system to improve the quality of life and increase access to housing.

At the business level, Mr. Thanh believes that investors need to focus on developing products that meet real needs, aiming to serve residents well, ensuring reasonable prices, transparent legal status and quality of construction that meets expectations. Only by providing the right products that the market needs can businesses create sustainable value and contribute to solving the housing problem for society.

Source: https://nld.com.vn/nhan-dien-4-rao-can-khien-nguoi-dan-ngay-cang-kho-mua-duoc-nha-o-196251204112732261.htm