House prices are 25 times higher than Vietnamese

03/10/2017   Viewed: 741
One billion VND apartment in Saigon, price increases / 5 advantages - investment weakness in Saigon apartment in 2017

Savills Vietnam has just released its latest report, entitled "The Big Wave", which addresses a number of lively shifts, deciphering the "iceberg" of the apartment market in two typical cities: HCMC and Hanoi.

27% of the urban population at low quality homes

According to UN-Habita, about 27% of Vietnamese urban residents live in low-quality housing, equivalent to 31 million people. Savills estimates that the higher the number of low-rise housing units will lead to a better demand for accommodation. This is a potential source of demand for the housing market.

House prices are 25 times higher than average

According to data from Numbeo.com in 2017, house prices in Vietnam are 25 times higher than the average income of people. This comparison shows that the potential and opportunity of the affordable apartment segment, under $ 900 per square meter in the Vietnamese market is enormous. Because this is a line of housing products close to the affordability of the people.

66% of urban people buy their first home to live

In the second quarter of 2017, the proportion of people buying houses for urban development in Vietnam accounted for 66%. The data is positive and nearly doubles compared with 36% in the first quarter. The proportion of buyers of apartments for rent accounted for 26% and surfing for buyers was 8%. This move shows that real demand for housing is on the rise.

Two large metropolitan areas have 100,000 new homes built each year

By 2016, HCMC has 58,000 and Hanoi has 42,000 new households. Taking into account the two largest cities in Vietnam, the number of newly-created families is about 100,000 households a year. Most of these nuclear families have separate needs to stabilize their lives. This is a great momentum is promoting the housing market in general and apartment in particular develop strongly.
 
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In the second quarter of 2017, the proportion of first-time homebuyers in HCMC and Hanoi accounted for 66%, while buying for rental investment was 26% and surfing was down to a relatively low level (8%). . Illustration

The rate of single urban households exceeds 10%

Data from the General Statistics Office of Vietnam (GSO), the formation of celibacy in big cities of Vietnam has tended to increase strongly since 1989 to present. Specifically, the rate of single households in 1989 was only 4.6%, in 2009 it jumped to 8.1%, approximately twice. By 2014, this rate has exceeded 9% and is expected to jump to 10.1% in 2019. The strong development of the single urban population in Viet Nam can promote the housing market to generate new demands.

The highest occupancy rate in the region

Hanoi has occupancy rates of 7.4% and Ho Chi Minh City 5.8%, which is higher than Jakarta (5.2), Kuala Lumpur (4.8), Manila 4.3), Bang Kok (4.0), Singapore (3.7). With this performance, the real estate rental market in Vietnam leads the region and is more attractive to neighboring markets.

The number of apartments to break all records

From 2015 onward, housing market in Vietnam shifts to post-crisis period, opening the recovery period. The most obvious sign is that the number of flats handed over annually increases sharply. In 2015, Ho Chi Minh City and Hanoi each have more than 10,000 apartments are put into use. In 2016, Ho Chi Minh City has more than 25,000 apartments handed over (more than double the previous year) and Hanoi has about 15,000 products.

By 2017, the supply of completed condominiums has been put to market in Hanoi and Ho Chi Minh City to the peak, each city has about 35,000 apartments were handed over. This is the source of breaking all market records so far and this has put a lot of pressure on the rental market. 01/7/2018.
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