The unbalanced real estate supply makes it increasingly difficult for people to own a home.

According to Mr. Vu Hong Thanh, Chairman of the National Assembly's Economic Committee, the imbalance in product structure has caused real estate prices to increase and people's dream of security is increasingly distant.

On October 21, at the 8th session of the 15th National Assembly , Chairman of the Economic Committee Vu Hong Thanh presented a report on the socio-economic review for 2024 and the Government's socio-economic development plan for 2025. In particular, a number of issues related to the real estate market were mentioned.

Besides new projects, many old apartment buildings have also increased in price "skyrocketingly" in recent times. Photo: Thanh Vu

According to the report, the real estate market has shown signs of recovery but is still facing difficulties in general. In addition, the imbalance in the supply structure has pushed up apartment prices in both the primary and secondary markets, making home ownership increasingly difficult for people.

Previously, the Vietnam Association of Realtors (VARS) said that 70% of new apartments launched in the third quarter of 2024 were in the high-end and luxury segments. Notably, mid-range apartments (VND 25 - 50 million/m2) only appeared in suburban mega-urban projects. As for the affordable segment (under VND 25 million/m2), this product line is almost "extinct".

According to VARS, as of the third quarter of 2024, the average selling price of project models in Hanoi reached nearly 60 million VND/m2. Compared to the first quarter of 2019, this number has increased by 64%. According to observations by reporters of the Investment Electronic Newspaper - Baodautu.vn , in the past month, Hanoi has welcomed at least 3 new apartment projects, all of which are in the high-end segment, with prices ranging from 75 to 170 million VND/m2.

“The market is currently divided into two segments. One is the high-end segment serving people with good financial conditions and investors. The other is the social housing segment. It is worth mentioning that affordable products, the segment in between the two above segments, are almost non-existent,” said Mr. Nguyen Van Dinh, Chairman of VARS.

Not only that, Mr. Dinh also raised the issue that the affordable housing segment suddenly disappeared from the market is an abnormality. Policy makers need to have specific regulations to promote this segment, from which the market can truly stabilize.

In addition to the issue related to the supply structure, the Chairman of the Economic Committee also pointed out that the situation of abandoning deposits after winning land auctions has negatively impacted the real estate market. The situation of monopoly, price inflation, wave creation, speculation, and pushing up land prices has caused most transactions to only take place among speculators. Meanwhile, real home buyers and businesses are struggling because of the high cost of land.

According to Mr. Le Dinh Chung, General Director of SGO Homes Company, land auctions with "unbelievable" results in the suburbs of Hanoi will become a factor causing project land prices to increase. Because, after each auction, the market price level is re-established in an upward direction. This problem does not only occur in the locality where the auction is held, but also creates a chain reaction and affects the surrounding districts.

“The winning land price will be the basis for local authorities to refer to and build a land price list, which will affect land tax. According to my observations, many businesses, even though they have cleared the land and have been notified of land tax, still do not dare to pay because when they finish paying the tax, they have almost no profit left, or even suffer losses,” Mr. Chung shared.

Source: https://baodautu.vn/batdongsan/nguon-cung-bat-dong-san-thieu-can-doi-khien-nguoi-dan-ngay-cang-kho-so-huu-nha-o-d227965.html