People are finding it increasingly difficult to access housing in Hanoi, a new cycle begins in 2025, Hai Phong rectifies land use rights auctions... are the latest real estate news.
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| The rate of increase in real estate prices in Vietnam is among the highest in the world, leading to the consequence that people's ability to buy a house is becoming increasingly difficult. (Photo: Linh An) |
Housing accessibility is becoming increasingly difficult for people.
Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, said that the rate of increase in real estate prices in Vietnam is among the top in the world, leading to the consequence that people's ability to buy a house is becoming increasingly difficult.
Accordingly, from 2019 to 2024, Vietnam's real estate prices increased by 59% in 5 years. This increase is much higher than that of developed countries such as the US (54%), Australia (49%), Japan (41%), Singapore (37%)...
Because of the above increase, Mr. Quoc Anh said that, assuming all income is used to buy a house, Hanoi people will have to work for 169 years to buy a street-front house with an average selling price of 22.8 billion VND/unit; it will take 132 years to buy a private house with an average selling price of about 6.3 billion VND/unit. With an apartment currently with an average selling price of 3.1 billion VND/unit, people will also need 23 years.
Research data from the Vietnam Association of Realtors (VARS) also 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.
The significant gap between actual average income and house prices makes home ownership in Hanoi today not only a challenge but also an impossibility for the 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 required 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.
Based on the average house price in each district and assuming 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.
Mr. Le Bao Long, Marketing Director of Batdongsan.com.vn, said that due to the high increase in real estate prices, 84% of buyers still have to borrow money. Households with a total income of less than 40 million VND/month have the highest borrowing rate, accounting for 69%. Meanwhile, households with a total income of 41-70 million VND/month have a borrowing rate of 18%, from 71-100 million VND/month have a borrowing rate of 9%. For a household with a total income of over 100 million VND/month, the borrowing rate is only 4%.
However, according to Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, the group of borrowers will face many unpredictable things such as economic downturn that can reduce home buyers' income, reduce their ability to pay or increase debt repayment pressure. Bank interest rates are not fixed, and in some periods, interest rate adjustments make home loans more expensive, which can make them unable to meet the payment for installments. In addition, some others will choose to wait or rent a house to be more flexible in their finances. In addition, many customers also lower their criteria for finding a house to be able to own a place to live soon.
Urban land in provincial markets will reign supreme
Mr. Le Dinh Chung, General Director of SGO Homes, said that after a long period of market crisis, stranded investors have rebalanced cash flow and investment market. Over the past two years, cash flow has been pouring into the capital, especially the apartment segment because the market and this segment meet the real use - a huge and always present capital demand of the Hanoi market. A market with a large concentration of investors has pushed Hanoi real estate prices up quickly and strongly, thereby spreading a certain heat to the markets of surrounding provinces, helping these provinces begin to show signs of recovery.
Currently, Hanoi's real estate prices are too high, gradually giving way to similar development to the provinces surrounding Hanoi, which also have similar development. Following this trend, in 2025, the real estate market in the North, typically Hanoi, will not have a sharp increase in prices like in 2024. In particular, in the context of high housing prices, people will tend not to rush to buy houses anymore but will switch to renting and use the money intended to buy a house to invest in the provinces or the countryside.
In provincial markets, the urban land segment will dominate, especially land with complete legal documents will be more sought after. Buyers will choose land and low-rise products near industrial parks, near economic axes such as Bac Ninh, Bac Giang or Hung Yen, Hai Duong, Hai Phong, Quang Ninh. The common point of these provinces is that they have a fairly strong economic development, located on the main traffic routes from the capital and have a foundation of industrial parks and a vibrant tourism foundation.
In general, 2025 is the year of the beginning of a new real estate cycle. Instead of investing in the crowd, following the market wave or following a certain "hot" segment, investors must choose a market that is closely linked to economic development and infrastructure. 2025 will witness the rise of provincial markets on the outskirts of Hanoi. Investors will aim for products from reputable investors with complete legal documents. Next, they must choose products that are suitable for their financial capacity, without using too much leverage.
Hai Phong: Rectifying land use rights auction work
The Chairman of Hai Phong City People's Committee has just issued instructions and requested relevant departments, branches and units to rectify the auction of land use rights in the area.
Specifically, the Chairman of the Hai Phong City People's Committee assigned the Department of Natural Resources and Environment and the District People's Committees to organize the public disclosure of planning, land use plans, construction planning, urban planning in the area where land use rights auctions are held and neighboring areas; take measures to ensure the supply of residential real estate and residential land suitable to the accessibility and payment capabilities of the majority of people in need, overcoming the imbalance between supply and demand in the real estate market.
Before determining the starting price according to the land price list for the auction of land use rights, it is necessary to review, adjust and supplement the corresponding land price in the land price list in the area and location where the auction is held according to regulations. The direction of the development of the land use rights auction plan must be strict, scientific, and controlled by the authorities, avoiding the situation of taking advantage of the auction for profit, causing many market disorders...
For the District People's Committees, departments, agencies and related organizations, review the local land demand, plan and invest in infrastructure construction of land areas expected to be auctioned for land use rights; at the same time, consider arranging suitable land funds to implement resettlement land allocation, land allocation without auctioning land use rights for the prescribed subjects. Promote the application of information technology and digital transformation in the organization of land use rights auctions to ensure publicity and transparency; be responsible before the law and the City People's Committee for organizing and implementing land use rights auctions to ensure publicity, transparency, objectivity, and protect the interests of the State, the rights and interests of related parties.
Request the Department of Justice to direct property auction organizations to, based on current legal regulations, take appropriate measures to strictly manage information on auction participation history to promptly detect cases with unusual signs in auctions such as: one person or group of people registering to bid for multiple plots of land in the same auctioned land area, auction participants bidding unusually high or winning high bids but abandoning deposits, report to the property owners and competent authorities for appropriate handling measures.
Hai Phong City Police proactively grasp the situation, detect, investigate, and strictly handle according to the law for organizations and individuals who violate to the extent that they must be prosecuted for criminal liability in the auction of land use rights.
Hung Yen successfully auctioned 273 land lots
Lac Viet Joint Stock Auction Company said that on February 9, the company successfully auctioned the right to use 273 land lots in the northern residential area of the District Sports, Cultural and Residential Complex in An Thi town, Hung Yen province.
Ms. Do Thi Hong Hanh, Chairwoman of the Board of Directors of Lac Viet Joint Stock Auction Company, said that the unit had received more than 4,000 bidding documents. The auction day attracted nearly 2,000 participants.
273 auctioned land lots have a total area of 30,571.9m2, with a total starting price of 645.747 billion VND.
The plots of land have an area of 90-295.2m2/plot. Starting price is 19.2-31.2 million VND/m2; equivalent to each plot having a starting price from over 1.7 billion to over 7.8 billion VND. Auction method is by direct secret ballot in one round at the auction; ascending bid method.
The auction results showed that the total winning bid was more than 1,503.3 billion VND, a difference of 857.631 billion VND, an increase of 232.81%.
In which, the highest auction price is 120 million VND/m2 and the lowest is 36 million VND/m2.
According to the auction organizer, the lot with the highest winning price is the corner lot, with the best location and an area of over 200 square meters.
Source: https://baoquocte.vn/bat-dong-san-kho-nhu-so-huu-nha-ha-noi-hai-phong-chan-chinh-dau-gia-dat-thi-truong-bat-dau-chu-ky-moi-du-bao-phan-khuc-len-ngoi-303885.html
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