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Vietnam's Prime Minister Pham Minh Chinh has urged the government to increase housing construction to address rapidly rising real estate prices that have made homeownership difficult for many citizens. Apartment prices in key cities, including Hanoi and Ho Chi Minh City, have risen 5.6% this year, averaging 80 million dong (USD 3,028) per square metre, while the average annual salary remains 98.4 million dong. The government plans to simplify development procedures, reduce costs for developers, support social housing projects, and ensure loans at reasonable interest rates.
Vietnam's Prime Minister Pham Minh Chinh has emphasized the need for increased housing construction to address the country's escalating real estate prices, which have rendered homeownership unaffordable for many citizens. During a recent government meeting, he highlighted that the high cost of housing has placed it beyond the reach of a significant portion of the population. Advertisement
In major cities such as Hanoi and Ho Chi Minh City, apartment prices have risen by 5.6% this year, reaching an average of 80 million dong (approximately USD 3,028) per square meter. This surge in prices has outpaced the average annual income of Vietnamese workers, which stands at 98.4 million dong. Economists have raised concerns about the potential risks of an asset bubble in the real estate sector, especially as the government encourages increased credit to sustain rapid economic growth.
To mitigate these challenges, Prime Minister Chinh has pledged to reduce development costs and simplify administrative procedures for real estate developers. He has also directed the central bank to formulate policies that offer real estate loans at reasonable interest rates. Additionally, he has instructed cities and provinces to expedite the development of social housing projects, which are funded by affordable loans and are designed to accommodate eligible low-income earners.
Prime Minister Chinh emphasized that the effective implementation of housing policies and the development of the property market will contribute to the country's rapid and sustainable economic growth while keeping inflation under control. The government aims to maintain inflation within the range of 4.5% to 5.0% this year. Consumer prices in August rose by 3.24% compared to the previous year, with costs for renting and construction materials increasing by 6.99%.
Prime Minister Chinh also noted that bank lending to the property market has increased recently, but assured that non-performing loans are under control. He called for a comprehensive review of the housing market to identify and address the underlying issues contributing to the soaring property prices. The government is committed to ensuring that housing remains affordable and accessible to all citizens.
Source Reuters
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