Mr. Chau emphasized that from 2017 until now, housing prices have continuously remained high, exceeding the financial capabilities of average-income people. In particular, from 2021, apartments priced under 25 million VND/m2 have completely disappeared from the Ho Chi Minh City market. With an apartment costing 2-3 billion VND, it would take about 25 years for a person with a low average income to save about 100 million VND/year to be able to buy a house.
According to HoREA, in the first 9 months of 2023, in Ho Chi Minh City, there are 13 commercial housing projects eligible to mobilize capital with 15,020 units (an increase of 1.37 times compared to the same period in 2022 but mobilized revenue decreased by 4 .7%) including 13,767 apartments (accounting for 91.6%) and 1,253 low-rise houses (accounting for 8.4%).
Of which, the high-end housing segment has 9,969 units, accounting for 66.37% (higher than the national rate of 58%), the rest is the mid-range housing segment with 5,051 units, accounting for 33.63% ( higher than the national rate of 26%) and there continues to be no housing in the affordable affordable segment, nor is there more social housing.
HoREA representative assessed that the real estate market continues to be imbalanced, out of phase with housing products, skewed towards the high-end housing segment. From 2020 until now, high-end housing has always accounted for an overwhelming proportion of up to 70-80% of housing products on the market, the rest are mid-range housing and almost no affordable housing.
“Currently, the need for housing to meet the real needs of society is still very large, especially the need for affordable housing and social housing. Therefore, if real estate businesses and home buyers have favorable access to the capital and credit markets and can remove legal obstacles for about 1,000 real estate projects nationwide and businesses make efforts to restructure, , restructuring housing products towards real demand, reducing house prices to a reasonable level, the real estate market has the prospect of recovery and growth again from the second half of 2024″, Mr. Chau shared.
Previously, this person also commented that Ho Chi Minh City real estate has passed the most difficult period, the market is currently on the recovery trend.
Specifically, HoREA data shows that market growth in the third quarter of 2023 was negative 8.7%, but this number has decreased by nearly half compared to the first quarter of the year. In the still dark picture of the market in the first three quarters of the year, the only bright spot is the industrial real estate segment with decent growth.
However, real estate prices in general remain high. High prices are one of the reasons why the number of real estate transactions has decreased and the amount of inventory is large.
According to data from the Ministry of Construction, in the first 10 months of 2023, the number of real estate transactions decreased by 50% over the same period. By the end of September 2023, real estate inventory has a total value of up to VND 301,600 billion, an increase of 5% over the same period.