Real estate prices are at a record high, affordable housing is absent

DNHN - In fact, the luxury housing segment is redundant, while the social housing and low-cost commercial housing segment is less than 2 billion VND/apartment.

The Ho Chi Minh City Real Estate Association (HoREA) has just issued a number of warnings related to the deceleration and less liquidity of the market.

According to HoREA, the supply-demand mismatch, shortage of project supply leading to a shortage of housing supply is common.

At the same time, the market is also experiencing a phase difference between segments. Specifically, the segment of high-end housing is redundant, while the segment of social housing and cheap commercial housing under VND 2 billion/unit is absent.

Accordingly, affordable housing under 30 million VND/m2 in Ho Chi Minh City in 2020 only accounts for 1%; in 2021 and now no affordable housing (0%); while high-end housing accounts for 74%, the remaining 26% is mid-end housing. Even, Ho Chi Minh City now has a townhouse costing 500 billion VND, or luxury apartments costing over 100 billion VND.

According to HoREA, the shortage of housing products, especially the lack of affordable housing, has led to a continuous increase in house prices over the past five years. "This directly affects the goal of ensuring social security in housing for the majority of disadvantaged people in society - low-income workers in urban areas", HoREA expressed.

In addition, there are currently thousands of tourist apartments, tourist villas, and tourist townhouses (condotels) whose certificates (pink books) have been revoked due to the illegal recognition of "residential land use rights not forming residential units". Now granted, changed or re-issued "pink book" but the land use term may be deducted from the date of being granted, changed or re-issued "pink book", causing insecurity for thousands of customers.

On the other hand, the market's liquidity is declining, and real estate transactions are quiet. Because home buyers and investors in real estate and housing projects are finding it difficult to access credit; the value of corporate bonds issued to real estate decreased by 79% in the second quarter of this year.

PV