Understanding the Housing Market in HCMC

Recent findings from the HCMC Institute for Development Studies reveal a stark reality for families in Ho Chi Minh City. The dream of owning a home is becoming increasingly elusive, with most families only able to afford 53% of the price for a desired two-bedroom apartment. This scenario is part of a broader study examining housing demand through 2030.

The Financial Gap in Home Ownership

For those aspiring to buy a house, the situation is even more challenging. A 66-square-meter unit, priced between VND2.8 to 15 billion, is out of reach for many, with families only able to cover 49% of the cost. Similarly, land lots in the VND1.74-10 billion range are only 68% affordable to potential buyers. The primary sources of funding for these purchases are personal savings, loans from family members, or bank borrowings.

The Demand for Housing in HCMC

With 99% of homebuyers preferring HCMC over neighboring provinces, the city faces a pressing need to develop at least half a million housing units by 2030. This demand, coupled with a shortage in housing supply, has led to a significant increase in property prices. In the first 11 months of 2024, only 31 housing projects with 31,200 units were initiated, a stark decrease from previous years.

Long-Term Implications for Buyers

An earlier survey highlighted the daunting prospect for individuals in their 30s, who may need up to 25.8 years of total income to afford a VND3 billion apartment. Economist Can Van Luc points out that while in some countries it takes 10-15 years of work to save for a home, in Vietnam, this period extends to 23-25 years, pushing the age of first-time buyers closer to retirement.

Current Market Prices

Data from the HCMC Real Estate Association indicates that a 65-sq.m two-bedroom apartment now costs around VND4 billion, with options under VND3 billion becoming increasingly rare. This price surge underscores the urgent need for solutions to the housing affordability crisis in HCMC.