House prices are too high, increasing the gap between rich and poor: Millions of people have lost their dream of settling down
From the beginning of the year until now, despite being severely affected Due to the Covid-19 pandemic, the land price did not decrease, but also continuously increased every quarter, establishing a new price level.
Having worked for 15 years without dreaming of owning a house
After nearly 15 years of accumulating, Do Van Hai and his wife (Ha Dong, Hanoi) are thinking about buying a house. With an additional amount of savings and loans of about 1.6 billion, Mr. Hai and his wife hope to buy an apartment in Hanoi enough for a family of 4
However, more than After two months of researching at many projects, Mr. Hai was startled when apartment prices increased. The apartment projects suitable for his family are priced at over 2.5 billion VND. With the increasing price of land, the price of apartments also increases sharply. This affects young families like Mr. Hai.
“As soon as you accumulate, house prices increase, so you won’t buy an apartment in your life, let alone buy a house”, he said. Hai said.
With the current situation, families like Mr. Hai can only think of ‘slums’ apartments of poor quality apartments or drifting to the suburbs. , go to a deep alley to buy small plots of land about 30 m2 to build dark box houses.
According to a survey by a market research company, over the past 5 years, house prices have increased 50-60%. As in 2015, the price of a Grade B apartment (average apartment) priced at about VND 25 million/m2, has increased to VND 40 million/m2 so far, while a Grade C apartment in 2015 is about VND 15 million/m2 now. has increased to 25 million VND/m2. The price increase of land plots is even more “terrible” when in the past 5 years it has increased by more than 100%, in some places it has increased by more than 200%.
House prices have increased, many people can’t buy houses
Housing prices increased gallop while income and wages of workers increased not to keep up. If a young person earns about 15 million VND/month, if he wants to buy a house about 1.5 billion VND, he must save up for 20 years.
Because, to have an income of 15 million VND VND/month, young people have to spend 9 million VND for living expenses, so if there is a balance of 6 million VND/month (not to mention personal income tax), a year will have 72 million VND left over. If you want to buy an apartment of about 1.5 billion VND (the cheapest apartment today), it takes young people about 20 years. But at that time, was the house price still at 1.5 billion VND/unit or did it increase several hundred percent.
15 million VND/month is not a low income for Young workers, but in fact, with an income of 20 – 30 million/month, if they live in Hanoi or Saigon, it is difficult for young family heads to accumulate to buy a house. Thus, not only the poor but also the middle class, who make up the majority of urban areas today, have difficulty accessing housing. In recent surveys, more than half of young people surveyed said that prices are too high and when they have enough financial savings, it makes it difficult for them to own their own house
House price increases make homeowners Investors are no longer interested in the low-priced segment. The segment of cheap apartments under VND 1.5-2 billion, which is considered “fit” for young people in big cities in Vietnam, has become extremely scarce and even tends to disappear. .
The story in Vietnam is no longer a warning but a reality. In South Korea, for example, Yonhap news agency, citing government data, shows that the number of Korean super-rich people, accounting for 1% of the country’s population, has an average of 6.5 houses per person, while nearly half population does not own a house.
In China, in recent years, housing prices have been continuously high, so much so that everyone is used to funny sayings like “Selling Beijing, Shanghai, Guangzhou and Shenzhen land can buy the entire US land.” For ordinary people, buying a house in a big city in China is really difficult.
House prices are getting more and more expensive, causing the gap between rich and poor to widen. . But more than that, high housing prices also become a settlement challenge for the majority of office and middle-class people in countries with a higher level of development, but it is a very close prospect for Vietnam.
Consequences from rising housing prices
Ds. Le Xuan Nghia commented: “There are many young people who have saved 1.5 billion dong, thinking they can buy an apartment far from the center, but the actual price has increased to 2 or 2.5 billion dong. This is an unacceptable reality”.
He frankly said that many large enterprises collect land to develop projects, but in fact, they only develop according to standards. did not complete the project, while other businesses in need of land lacked a serious project. This situation has led to a serious waste of land, stalling both finance and the market at risk.
The housing project is seriously lacking
“People with land “call” prices to the sky, speculators are free to “blow up prices”, buyers are afraid, in the end there are not many transactions, supply and demand curves are difficult to meet. Real estate prices increase. Too high does not come with value, bringing risks in the future, just a shock will make the market suffer big consequences”, said Dr. Le Xuan Nghia.
Mr. Le Hoang Chau – Chairman of Ho Chi Minh City Real Estate (HoREA) pointed out that, “the land price is too high to escape the real value, which is not consistent with “the law of value, the law of competition, the law of supply and demand” and Incompatible with the reality of the real estate market, it can become a “double-edged sword” that both damages consumers and can be detrimental to the investors themselves because if the selling price is too high, high value but is not accepted by the market, it can increase the inventory of high value”.
According to Mr. Chau, currently, HCMC is almost unable to find projects. Commercial housing has a level price under 30 million VND/m2 apartment floor. With the winning land price of 4 Thu Thiem land lots being too high, it can have a negative impact on all segments of the real estate market, greatly hindering the realization of the goal of reducing house prices. above all, the goal is to develop social housing, “affordable commercial housing” in the city.
Mr. Nguyen Quoc Khanh – Vice Chairman of Vietnam Real Estate Brokers Association – According to analysis, the current increase in land prices is so high that most workers and middle-income people cannot buy houses.
House prices are too high, leading to costs. premises increased sharply, leading to an increase in consumer products, catering, and services, exceeding consumers’ ability to pay.
At the same time, the price of real estate too high growth compared to income and labor productivity in Vietnam will reduce attractiveness for foreign investors, the biggest consequence is that investors will quietly withdraw from the Vietnamese market.
According to Mr. Khanh, the most dangerous thing is overvalued properties as collateral. guy inflated too much, leading to the credit system’s impact, leading to huge consequences for the economy that took many years to recover, not to mention the growing social unrest.
Duy Anh
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