Social housing - the last 'clinging point' for low-income people's dream of settling down
Apartment prices in urban areas are constantly increasing, social housing projects with quite affordable prices from 17-20 million VND/m2 have become the last hope of low-income people for a dream of settling down.
Apartment prices continue to increase
According to the report of the Ministry of Construction, in the real estate market, the number of new apartment projects opened for sale in the first quarter of 2023 is not much, mainly still coming from the mid- and high-end segments and concentrated in some large provinces and cities.
Mid-range projects have prices from 27 million VND/m22and above, in big cities like Hanoi and Ho Chi Minh City, projects under 30 million VND/m2 are quite rare.2
Some projects with notable price fluctuations in the quarter include: Vinhomes Metropolis (Ba Dinh) increased by about 3.5% (up to 99.1 million VND/m2).2), Lac Hong Westlake (Tay Ho) increased by about 3.6% (to 36.1 million VND/m2).2), Mandarin Garden 2 (Hoang Mai) increased by about 4.1% (to 43.9 million VND/m2).2).
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Apartment prices in urban areas are constantly increasing. |
Thus, in recent years, apartment prices have continuously increased in all segments. Low-cost commercial housing (from 25 million VND/m2(and below) does not appear to be on the market.
Scarce supply, rising input material prices
Explaining the continuous increase in apartment prices, Mr. Nguyen Manh Ha - Permanent Vice President of the Vietnam Real Estate Association said that apartment prices will increase in the coming time due to the scarcity of supply. The number of new projects offered for sale on the market is continuously decreasing. Many real estate businesses are still not resolved regarding capital and legal issues of the project.
“The time for legal appraisal and completion of project licensing documents is prolonged, so the project price is increased. Projects that are launched later will find it difficult to offer lower prices than previous projects in the same segment. Therefore, if the real estate supply remains stagnant and credit flows are not cleared, primary selling prices will be difficult to decrease,” said Mr. Nguyen Manh Ha.
Many experts have predicted a shortage of apartment supply in the real estate market as legal problems have not been resolved. Thousands of projects have not been implemented for this reason.
In addition, the "price storm" of materials from 2021 to the end of 2022, the construction materials market formed a new price level. The increase in input material prices forced real estate projects to increase their selling prices. In the first and second quarters of 2023, the construction materials market still tended to increase despite low consumption. This is also a problem that may cause apartment prices to increase.
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People line up to buy social housing in Da Nang. Photo: Vietnamnet |
Social housing projects - a "clinging point" for low-income people
When the market for low-cost apartments (under 25 million VND/m2)2) disappeared from the market, low-income people in urban areas waited and hoped for social housing projects. Social housing projects, which were already scarce, have now become even "hotter". From Hanoi to Da Nang, people lined up from night to morning to submit applications to buy low-income houses.
Mr. Nguyen Van Long in Hoang Mai (Hanoi) - the person who submitted the application to buy the NHS Trung Van social housing project shared: "My wife just gave birth, the family is renting a 20 m2 room2very frustrating. The income of the couple is only enough to pay and save a little. With social housing apartments from 1 to 1.2 billion VND, we can still borrow money, but commercial apartment projects are not possible.
The market is short of cheap commercial apartments, low-income people have to "cling" to social housing projects. The number of applicants is many times larger than the number of apartments sold. People's dream of settling down will be decided by lucky draws./.
Social housing prices increased many times after being put into use.
Social housing units, which have been in use for 5-10 years, are now being sold for many times more than their original price. The selling price of social housing units in the secondary market is currently around 30 million VND/m2.2. Like the Ecohome social housing project (Bac Tu Liem, Hanoi) handed over from 2020, the selling price from the investor is about 16.5 million VND/m2However, currently many social housing units in this project are being resold at the price of 30 - 34 million VND/m2.2, doubled compared to before.
Dai Kim housing project (Hoang Mai, Hanoi) was opened for sale since 2016 with price of 14 million VND/m22The project was handed over and put into use from 2017 to present, the current secondary selling price is from 32 - 35 million VND/m2…
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