Apartment prices continue to rise far beyond workers' incomes

DNHN - Apartment prices continue to rise sharply, increasingly out of reach for workers' incomes. This gap not only creates significant financial pressure but also makes homeownership increasingly difficult for the majority of people.

In recent times, apartment prices have continued to rise, creating a growing gap compared to workers' incomes. Many people feel helpless as housing prices in major cities far exceed their financial capabilities. This disparity makes buying a home a distant goal for most workers, causing great financial pressure.

The increase in apartment prices is primarily due to high demand, limited supply, and rising construction costs. While many people desire homeownership, new construction permits face difficulties, and material costs are also rising. This drives apartment prices even higher, making demand difficult to meet in a timely manner.

Furthermore, the gap between apartment prices and workers' incomes leads to challenges in home buying. For many people, buying a home not only poses a financial challenge but also involves long-term debt burdens. This affects their financial stability and quality of life.

To address this situation, policies and solutions are needed from both the government and businesses. The government needs to reform the construction permit process and control speculation, while real estate businesses should focus on developing more affordable housing projects. This is the only way to alleviate financial pressure and help workers access housing.

According to the Vietnam Economic Situation Report by the World Bank (WB), the average real monthly income of workers in Vietnam reached only 7.45 million VND in June 2024, with a modest growth rate of 7% compared to the previous year (at current prices). Real income growth has not significantly increased since 2022 and is lower than in the pre-Covid-19 period.

Based on data from the General Statistics Office, the average per capita income in 2023 reached 4.96 million VND per month, an increase of 6.2% compared to 2022. Meanwhile, the average income in Hanoi was 6.869 million VND per month, up 6.5% from the previous year, ranking second in the country only after Binh Duong. However, this growth still does not keep pace with the rise in real estate prices.

Although real incomes have not improved significantly, apartment prices have skyrocketed. According to a report by the Ministry of Construction, the price of apartments in the second quarter of 2024 increased by an average of about 25% compared to the same period last year. The price increase occurred not only in new projects but also in older, previously used apartments, reflecting the "rapid" increase in housing prices.

Commenting on this issue, Mrs. Nguyen Hoai An, Senior Director of CBRE Vietnam, provided important data on the real estate market in the second quarter of 2024. According to Mrs. An, primary apartment prices have risen to nearly 65 million VND per square meter, representing a significant increase of up to 30% compared to the same period last year. This sharp rise reflects a worrying trend in the real estate market, where housing prices are rapidly increasing while workers' incomes are not improving correspondingly.

In addition to the impressive rise in the primary market, Mrs. Nguyen Hoai An also emphasized that apartment prices in the secondary market have increased by up to 22% compared to 2023. This shows that not only new projects but even older, used apartments are seeing significant price increases. This price surge not only affects consumers' purchasing power but also raises concerns about the sustainability of the real estate market.

Despite the continued rise in apartment prices, workers' incomes have not improved significantly. The growing gap between housing prices and incomes makes it difficult for many people to afford a home. Mrs. Nguyen Hoai An pointed out that in the context of incomes not increasing in line with real estate prices, buying an apartment is becoming increasingly difficult, creating an unbridgeable gap in the housing market.

The situation of apartment prices continuing to soar sharply, far exceeding workers' income growth, is creating a growing gap between people's purchasing power and the reality of the real estate market. As apartment prices rise dramatically while incomes remain modest, workers face increasing financial pressure in achieving homeownership.

This situation not only exacerbates inequality in housing access but also poses a major challenge for policymakers in balancing the real estate market with people's ability to pay. To address this issue, effective adjustment measures are needed to ensure sustainable and equitable development in the housing market.

Nhan Ha