Housing prices in urban areas are still on the rise, driven by not only limited supply but also investment and speculation. Many have thrown support behind a real estate tax to help regulate the market. Housing prices remain high on modest supply Vietnam’s housing crisis, though not officially acknowledged, is clearly evident in urban areas. In Hanoi, for example, the population is projected to reach nine million by 2025, with an urbanization rate of around 62%. This means the capital city’s urban population will grow from 4.1 million in 2022 to 5.6 million by 2025, or about 120,000 new households annually. Hanoi’s 2022-2025 housing development plan puts the total demand at 185,200 homes, of which 166,600 will be condos. Therefore, according to the Vietnam Association of Realtors (VARS), Hanoi will need around 46,300 new homes each year, including 41,650 condos. Despite this demand, the supply of new condos in Hanoi has been steadily decreasing. In 2023, the city had less than 11,000 new units, only 66% of 2022’s total. In the first quarter of 2024, only 3,000 new condos were launched. VARS estimated that Hanoi could face an annual shortfall of 50,000 condos through 2025. The situation is similar in […]
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