HCMC – For individuals with middle and lower incomes, owning a home in a major city like HCMC is an unattainable dream, as housing prices are 32.5 times higher than the average income of a Vietnamese household.
According to a report released by the Urban Land Institute (ULI), home prices in HCMC now range from VND5.5 billion to VND7 billion each.
HCMC and Danang City are among the least affordable cities in the Asia-Pacific region, with respective home attainability indexes of 32.5 and 26.7. This means that housing prices in these cities are 32.5 and 26.7 times higher than the average income of Vietnamese households.
Hanoi is also included in the list of cities with high housing prices in the region, with a reading of 18.3. On average, a home in Hanoi and Danang currently sells for VND4.3 billion to VND5 billion, respectively.
ULI attributes the high prices to speculative homebuyers and long-term investors who own multiple units and view properties as assets for storing value.
Meanwhile, the HCMC Real Estate Association said that the rising costs of land, construction materials, labor, legal fees, and interest rates, along with speculation and price gouging, have driven up real estate prices in HCMC. This has made it difficult for those in need to own a home, despite the recent 10-30% discount in the secondary market and a significant decline of 30-50% in prices in the primary market.