The highest income group in Hanoi and Ho Chi Minh City also finds it difficult to buy a house; shops on “golden land” in Hanoi have few tenants; when will housing projects need to seek opinions from the Ministry of National Defense and the Ministry of Public Security?… are the latest real estate news.
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| Real estate latest: The gap between income and housing prices is widening, especially for middle-class and upper-middle-class households. (Photo: Anh Phuong) |
High income also difficult to buy house
In a recently released report, the Vietnam Association of Realtors (VARS) cited data from the 2023 population living standards survey results of the General Statistics Office (GSO), saying that the group with the highest income (accounting for 20% of the population - group 5) had an average income per person of 14.47 million VND/month in Hanoi; 13.8 million VND/month in Da Nang; 13.26 million VND/month in Ho Chi Minh City; 13.9 million VND/month in Dong Nai and 18.38 million VND/month in Binh Duong.
According to VARS, this is the group that is expected to be able to own houses in large cities such as Hanoi or Ho Chi Minh City without needing support from the Government. However, in reality, when faced with the problem of owning houses in these large cities, even the above high-income group encounters many obstacles.
VARS assumes that each household with 2 people of working age is in the highest income group, with the average income of this group estimated at about 30 million VND/month/household, equivalent to about 360 million VND per year.
Maximum affordability if applying the common financial rule is that housing costs do not exceed 1/3 of income, which is about 6.7 million VND/month, equivalent to about 80 million VND/year.
Meanwhile, each commercial apartment in Hanoi and Ho Chi Minh City costs from 40-70 million VND/m2, depending on the area and segment. Thus, an apartment with an area of about 60m2 will cost 2.5-3.5 billion VND.
If the high-income group wants to buy a house worth 3.5 billion VND and borrows 70% of the house value from the bank, or 2.45 billion VND, with an interest rate of 8%/year for 20 years. The monthly installment will be around 25-27 million VND, equivalent to over 300 million VND per year.
Thus, according to VARS, with a maximum payment of 80 million VND/year, this group of people is almost unable to buy a house.
Explaining the reason for the sharp decline in housing affordability over the past few years, VARS said that real estate prices in large cities, which were already beyond the financial capacity of the majority of people, increased rapidly, many times faster than the rate of income growth.
Specifically, after the Covid-19 pandemic, real estate prices, especially apartments in Hanoi, Da Nang, and Ho Chi Minh City, continuously increased, setting a new level 30% higher than in 2019.
According to data from the Ministry of Construction, in the third quarter of 2024, apartment prices in Hanoi increased in both new and old projects, with new project prices increasing by about 4-6% quarterly and 22-25% annually.
Data from the batdongsan channel shows that the average selling price of apartments in 2021 ranges from 34-37 million VND/m2; in 2022, it ranges from 38-40 million VND/m2. In 2023, the selling price ranges from 39-42 million VND/m2 and in 2024, the average selling price has increased to 45-51 million VND/m2.
Meanwhile, urban per capita income in 2023 will only increase by about 4% compared to GSO statistics in 2019.
The average income of group 5 in Hanoi and Da Nang in 2023 will only increase by 3% and 7% respectively compared to 2019. The average income of this group in Ho Chi Minh City even recorded a negative growth of 8%.
This has widened the gap between income and housing prices, especially for middle-class and upper-middle-class households.
Another reason, according to VARS, is the lack of suitable housing supply, with very few housing projects priced below VND30 million/m2, leaving the majority of people, including group 5, without suitable options.
In addition, one of the main factors driving up real estate prices is speculation. Many people buy real estate without intending to use it, buy it and then leave it abandoned, waiting for the price to increase, making the imbalance between supply and demand even more serious...
Many business premises on 'golden land' in Hanoi closed
At the end of 2024, dozens of business premises on Kim Ma Street, which previously had one of the most expensive rental prices in Hanoi, are now closed and have signs for rent.
The owner of a 5-storey house, with a total usable area of 200m2, on Kim Ma Street, said that since the beginning of 2024, many brands and shops on the street have continuously left, the premises have been closed and left empty. It is known that the whole house was previously rented for 60 million VND/month, now reduced to 50 million VND/month, but for more than half a year now there has been no tenant.
The owner of a 5-story house with 2 street frontages on Kim Ma Street said that in addition to reducing the rent, he also created conditions for customers to pay 3 months' rent instead of 6 months at once as before, but still could not retain tenants.
Kim Ma Street is about 1.5 km long, every few houses there is a shop with a "for rent" sign.
Not only are large premises vacant, but small premises with rental prices ranging from 15 to 20 million VND/month also have no tenants.
"Before the Covid-19 pandemic, business premises on Kim Ma Street would be immediately taken over by someone else if they were empty, but now many shop owners cannot survive, partly because of high premises prices, partly because of poor business, so they have to return the premises," said the owner of a business premises on Kim Ma Street.
According to residents living on Kim Ma Street, since the end of 2023, they have witnessed many stores returning their premises and leaving. Part of the reason is due to the impact of the prolonged underground station construction, along with poor business conditions, even bankruptcy.
Real estate experts analyze that the development of e-commerce is making shopping activities more diverse and flexible...
Hoang Mai District (Hanoi) is about to auction nearly 44,000m2 of land.
Lac Viet Joint Stock Auction Company has just announced the auction of assets of the Hoang Mai District Land Fund Development Center.
Specifically, auction of land use rights to implement the low-rise housing construction investment project at land plot coded TT4 in Nam Ho Linh Dam Urban Area, Hoang Liet Ward, Hoang Mai District, Hanoi (phase 1).
The auctioned land has a total area of 43,944m2; including 20,061m2 of residential land, 20,759m2 of traffic land and more than 3,123m2 of green land.
The residential land area corresponds to 10 zones, 262 plots of land, the construction density of the whole area is about 49.7%, 4 floors high.
The starting price of round 1 is over 86 million VND/m2. The starting price of round 2 onwards is equal to the highest valid bid in the previous round. Price step is 500,000 VND/m2.
Auction registration fee is 4 million VND. Auction deposit is over 345 billion VND.
Auction form by direct voting in multiple rounds at the auction and must go through at least 3 mandatory rounds. Ascending bid method.
Time and place for selling and receiving documents until 5:00 p.m. on December 20 at the one-stop department - Hoang Mai District People's Committee and the headquarters of Lac Viet Joint Stock Auction Company.
The auction will be held at 2:30 p.m. on December 23 at the Hoang Mai District Political Center hall.
When do housing projects need to consult the Ministry of National Defense and the Ministry of Public Security?
The Ministry of Construction has just sent a document to the Department of Construction of Ha Tinh province regarding the consultation with the Ministry of National Defense and the Ministry of Public Security on housing construction investment projects in areas requiring national defense and security.
Accordingly, the Ministry of Construction received Official Dispatch No. 3770/SXD-QLN dated November 15, 2024 of the Department of Construction of Ha Tinh province, requesting guidance on obtaining opinions from the Ministry of National Defense and the Ministry of Public Security on housing construction investment projects in areas requiring national defense and security according to the provisions of the law on housing.
After studying, the Ministry of Construction replied as follows: Regarding the consultation with the Ministry of National Defense and the Ministry of Public Security on housing construction investment projects in areas requiring national defense and security. According to the 2023 Housing Law, foreign organizations and individuals are only allowed to purchase, hire-purchase, receive gifts, and inherit commercial housing in housing construction investment projects not located in areas requiring national defense and security. In Clause 2, Article 16, Clause 2, Article 17, and Clause 3, Article 19 of the 2023 Housing Law, foreign organizations and individuals are only allowed to purchase, hire-purchase, receive gifts, receive inheritances, and own commercial housing in housing construction investment projects not located in areas requiring national defense and security.
Decree No. 95/2024/ND-CP stipulates that the agency in charge of appraising and approving investment policies must consult the Ministry of National Defense and the Ministry of Public Security on determining whether the project is located in an area requiring national defense and security or not in an area requiring national defense and security. This is to determine whether the project is allowed to allow foreign organizations and individuals to own houses or not allowed to allow foreign organizations and individuals to own houses.
According to this regulation, the State only allows foreign organizations and individuals to buy, lease-purchase, receive gifts, or inherit commercial housing. There are no regulations allowing the right to use residential land in housing construction investment projects. Therefore, in the case of infrastructure construction investment projects to divide land into plots and sell them to people to build their own houses, it is not subject to the request for comments from the Ministry of National Defense and the Ministry of Public Security as prescribed in Clause 6, Article 15 of Decree No. 95/2024/ND-CP.
Regarding the consultation with the Ministry of National Defense and the Ministry of Public Security on social housing construction investment projects, according to Clause 4, Article 6 of Decree No. 100/2024/ND-CP dated July 26, 2024 of the Government, for social housing construction investment projects and housing for the people's armed forces, the agency in charge of appraising and approving the investment policy does not have to send the consultation with the Ministry of National Defense and the Ministry of Public Security on the contents specified in Clause 6, Article 15 of Decree No. 95/2024/ND-CP.
Source: https://baoquocte.vn/bat-dong-san-cua-hang-dat-vang-ha-noi-e-khach-thue-gia-nha-tang-chong-mat-thu-nhap-cao-cung-kho-mua-296829.html
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