(Dan Tri) - Experts emphasize that housing prices exceeding income levels are unreasonable. To solve this problem, the Government needs to implement solutions to increase supply as well as regulate the market.
House prices increased 400 times in a few decades
At a discussion organized by the Vietnam Association of Realtors (VARS) on the afternoon of December 27, Dr. Vo Tri Thanh reviewed the "shocking" increase in housing prices in just a few decades. He said that if inflation is taken into account, in the 90s, commodity prices increased 4 times. In the past two decades, commodity prices increased no more than 2 times, but housing prices increased 400 times.
Commenting on this figure, Dr. Le Xuan Nghia said that the above price is not reasonable. The International Monetary Fund (IMF) said that a reasonable house price is when it does not exceed 30 years of income of an average household. If it exceeds 30 years, the real estate market shows signs of a bubble.
"Vietnam has long surpassed the 30-year mark and is now somewhere around 60 years. This is a very sad thing," Dr. Le Xuan Nghia exclaimed.
The reason for the rapid increase in real estate in Vietnam comes from two things. First, the real estate supply is too limited. Second, the growth of total money supply is greater than the growth rate of GDP and inflation.
Dr. Le Xuan Nghia (Photo: IT).
Sharing the same view, Dr. Can Van Luc cited a survey by Mio organization that said real estate prices compared to income in Vietnam is 23.5 years. Meanwhile, the world average is 14.5 years. He said that in just the past 5 years, real estate prices have increased rapidly, especially in the housing and land areas.
Data from VARS also shows that in 2024, the apartment segment will play a leading role, accounting for about 70% of the total new housing supply. Of which, the proportion of new apartment supply in the high-end segment in the fourth quarter reached 47%, up 16 percentage points over the same period last year. The proportion of the luxury and super luxury segments also grew strongly, reaching nearly 27% in the fourth quarter.
How to reduce house prices?
This issue as well as how to reduce house prices has become a hot topic among experts.
Dr. Le Xuan Nghia said that experts are currently divided into two schools of thought. Half of the experts believe that housing prices cannot go down but will increase. The other half believe that by increasing the supply of social housing, housing prices will slow down or decrease.
However, Dr. Nghia was somewhat cautious when citing examples of measures such as taxing to reduce housing prices that have failed in China or the US. He believes that the development of low-cost social housing is the only solution to this problem. To do this, he believes that the Government needs to take extraordinary actions and measures in the new era to be able to handle the problem.
Dr. Can Van Luc also agreed that the solution to this problem comes from increasing the supply of housing. He expects that preferential credit packages for social housing will help businesses increase supply.
Another solution emphasized by Dr. Luc is to resolve the remaining real estate projects that are stuck and abandoned. When these projects are resolved, tens of billions of dollars that are stuck will be released as well as a large supply will be increased, with more attractive prices.
Experts mentioned other synchronous solutions such as the need to soon establish a housing database and the regulatory role of the Government as stipulated in the 2024 Land Law.
In his opening speech, Dr. Nguyen Van Dinh, Chairman of VARS, assessed that 2024 is considered a pivotal year for the real estate market.
Thanks to the great strides in perfecting the legal corridor under the leadership of the Party and State, the direction and administration of the Government and the Prime Minister, together with the active participation of the entire political system, all levels and sectors.
This is not only an important foundation to overcome current difficulties but also marks the beginning of a strong and sustainable transformation phase of the real estate market in the coming time.
Source: https://dantri.com.vn/bat-dong-san/chuyen-gia-gia-nha-tai-viet-nam-tang-gap-400-lan-chi-sau-vai-thap-ky-20241227222804301.htm
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