People in the Southeast, despite having high incomes, cannot keep up with housing prices.

(CLO) Although the income of people in the Southeast region is among the highest in the region compared to many other regions, to own an apartment with a price of about 2 billion VND, on average each person still needs to save all their income for 10 years without spending.

People in the Southeast, despite having high incomes, cannot keep up with housing prices.

Like many large urban areas in Vietnam, the Southeast region is facing a housing "hunger", especially in Ho Chi Minh City.

According to data from the General Statistics Office in 2024, the average housing area per capita nationwide will reach 23.2 square meters per person.

Meanwhile, according to Decision No. 2161/QD-TTg of the Prime Minister, Vietnam aims to increase the average housing area per capita nationwide to about 30 square meters of floor space per person by 2030.

The Southeast region is facing a housing "hunger". (Photo: ST)

However, the Southeast region is facing a difficult housing problem when the rate of people with an average housing area of ​​less than 8 square meters per person is the highest, accounting for 16.3%, equivalent to about 3 million people.

At the workshop "Cash flow into real estate in the South" held on October 31, Mr. Le Nhu Thach, Chairman of the Board of Directors of Bcons Group said: Statistics show that the average GDP per capita in the Southeast region reaches 175 million VND/year, equivalent to about 15 million VND/month, which is considered a high income level.

“Although this income level is high compared to many other areas, to own an apartment with a price of about 2 billion VND, on average each person still needs 10 years of saving all their income without spending,” said Mr. Thach.

Thus, the population with a cumulative GDP of less than 2 billion VND in the past 5 years in the Southeast region accounts for a fairly high proportion. Currently, about 17 million people have difficulty accessing housing, especially in the context of skyrocketing housing prices, increasingly scarce affordable apartments, and apartments under 1 billion VND disappearing from the market.

According to Mr. Thach, in large cities in the Southeast such as Ho Chi Minh City, Binh Duong and Dong Nai, the need for housing for middle and low-income groups, including workers and migrant workers, is becoming increasingly urgent.

However, the supply of social housing and affordable housing is still very limited, not meeting the actual needs of this group. This situation forces many people to live in cramped, low-quality boarding houses lacking basic amenities, affecting their quality of life as well as their health.

In addition, in Ho Chi Minh City, the average apartment price ranges from 40-60 million VND/m2 in suburban districts and up to 100 million VND/m2 in central areas, beyond the affordability of many middle-income families.

Mr. Le Nhu Thach, Chairman of the Board of Directors of Bcons Group. (Photo: ST)

Not only that, the high population growth rate in big cities such as Ho Chi Minh City and Binh Duong is putting great pressure on infrastructure, transportation, healthcare and education, directly affecting people's quality of life.

“As the population increases rapidly, the transportation system is often congested and public services are overloaded, leading to a shortage of basic amenities, such as healthcare and education,” said Mr. Thach.

In particular, in this context, people pay more and more attention to the living environment. The demand for green, energy-saving housing and green space is increasing. However, environmentally friendly housing projects are still very limited, while the cost is high, not suitable for the majority of people's ability to pay.

The demand for owning apartments priced under 2 billion VND in Ho Chi Minh City is increasing, but you have to "go far"

Currently, the demand for housing in Ho Chi Minh City is very high, estimated at about 50,000 apartments per year to meet the needs of the people. However, the supply cannot keep up with this demand due to many factors.

Among them, legal barriers, rising land costs and a shortage of affordable apartment supply are the main reasons why the market cannot develop synchronously.

In fact, about 60-70% of current housing demand is in the low-cost segment. This shows that people, especially those with low and middle incomes, are in dire need of housing solutions that suit their financial capabilities.

However, the market is lacking affordable housing projects, making it difficult for many people to find a place to live.

In particular, the issue of customer trust is very important. Many projects have been handed over but the certificates have not been delivered to customers, causing customers to worry and it is necessary to restore customer trust.

According to Mr. Thach, the current market is in need of affordable housing. But along with that, the investor must be reputable with clear commitments to customers.

“We currently have 7 projects handing over certificates to customers. Some projects have been implemented and handed over houses ahead of schedule as committed to customers. In particular, handing over pink certificates to customers within a maximum of 9 - 12 months from the handover date. Therefore, the occupancy rate of residents living in the projects is over 90%,” said Mr. Thach.

Mr. Nguyen Van Dinh, Chairman of Vietnam Real Estate Brokers Association. (Photo: RT)

Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association, said: In the Southeast market, especially Binh Duong, prices are currently on an upward trend, but prices are still lower than in the North, because this area has previously experienced strong price increases.

In Ho Chi Minh City, real estate prices are quite high, making it difficult to own a good quality apartment with a modest budget, especially when the city is facing infrastructure overload. To reduce the load, the current trend is to expand and spread the population and labor to neighboring areas.

“This is the reason why Binh Duong has emerged as a promising destination. This area is being heavily invested in infrastructure, regional connectivity is complete, and traffic has also been significantly improved, suitable for buyers who want to find a quality place to live but at a more reasonable price. Accordingly, Binh Duong is an area worth consulting for investors, especially those with average finances who want to invest long-term,” said Mr. Dinh.

Source: https://www.congluan.vn/nguoi-dan-dong-nam-bo-tuy-co-thu-nhap-o-muc-cao-nhung-khong-duoi-kip-gia-nha-post319358.html