Average income must increase 2.3 - 10 times to be able to buy a house in Hanoi

ANTD.VN - The recommended minimum income to buy an average-priced house in Hanoi is about 2.3 to 10 times higher than the average household income in Hanoi.

This is the opinion of experts from the Vietnam Association of Realtors (VARS). The reason is that they do not earn enough money to pay for a house or “keep up” with monthly mortgage payments when taking out a home loan. Especially in the context of the economy facing many challenges, with the risk of a trade war, making many people feel worried about the possibility of income growth.

At the same time, the change in the lifestyle of young people is also one of the reasons. Accordingly, young people today tend to prioritize the quality of life, through the balance between work and enjoyment rather than "must own a house" despite the pressure of having to pay monthly debts.

The "dream" of buying a house in Hanoi is out of reach for people with average income.

VARS research data shows that the recommended minimum income to buy an average-priced house in Hanoi is about 2.3 to 10 times higher than the average household income in Hanoi.

Specifically, according to data from the General Statistics Office, the average monthly income of workers in Hanoi in the third quarter of 2024 reached 10.7 million VND/month. Assuming a household of 4 people, of which 2 are of working age, the total household income will be about 21.4 million VND/month.

With the average primary apartment price in 2024 reaching 70 million VND/m2, newly opened projects are priced from 60 million VND/m2, to be able to buy an apartment in Hanoi, buyers need a minimum income ranging from 45 million to 210 million VND/month, depending on the area.

According to VARS, the significant gap between actual average income and housing prices makes home ownership in Hanoi today not only a challenge but also impossible for the vast majority of households with average or even good incomes.

In central districts such as Hoan Kiem, Ba Dinh, Dong Da, Hai Ba Trung or Tay Ho, the gap between the minimum annual salary needed to pay a mortgage and the average household income is up to 10 figures. Meanwhile, suburban areas such as Ha Dong, Bac Tu Liem or Long Bien have more accessible prices, but are only suitable for individuals and households with incomes of 40 - 60 million/month.

Specifically, the calculation is based on the average house price in each district and assumes that the buyer can borrow 70% of the house value from the bank with an average interest rate of 8%/year for 20 years. According to the financial principle, the total monthly installment should not exceed 40% of income, then the recommended minimum income to buy an average-priced house in Ha Dong, Long Bien, Nam Tu Liem, Bac Tu Liem, Gia Lam is about 2 to 3 times higher than the average household income of Hanoi workers.

In Hoan Kiem, Ba Dinh, Hai Ba Trung, Dong Da or Tay Ho districts, the minimum income required is above 1 billion VND/year, equivalent to a difference of about 3.7 to 8 times. In Cau Giay and Thanh Xuan districts, the difference is 3 to 3.5 times.

This means that buying a house in Ha Dong, Long Bien, Nam Tu Liem, Bac Tu Liem, Gia Lam districts is more feasible for households with typical incomes, provided they are willing to bear the cost burden, spending more than 40% of their income on monthly installments.

Source: https://www.anninhthudo.vn/thu-nhap-trung-binh-phai-tang-23-10-lan-moi-co-the-mua-nha-ha-noi-post603442.antd