Foreign Property News | Posted by Zarni Kyaw
Expert Dang Hung Vo said at the conference held by Dan Viet newspaper that the structure of property products in Vietnam did not match market demand, especially in Hanoi and HCM City.
Vo pointed out that the supply of high-end apartments was abundant while there was a shortage of affordable homes.
The Central Institute for Economic Management (CIEM) cited statistics showing that as Vietnam was undergoing rapid urbanisation, on average around 1 million people migrated from rural areas to big cities like Hanoi and HCM City each year and the figure is expected to rise further.
This increases demand for affordable homes in big cities.
It was estimated that demand for affordable homes accounted for around 60-70 percent of total market demand, but the supply met less that 20 percent.
Specifically, apartments of less than 60sq.m with prices of less than 700 million VND (30,500 USD) accounted for just around five per cent of market supply.
Vo said that the Government’s policies for developing social housing projects and affordable homes had failed to raise resources from the private sector.
Vo said that it was important to develop policies to promote the development of affordable homes, rather than social housing development.
CIEM Deputy Director Tran Kim Chung agreed, saying that focus should be placed on developing affordable homes.
Ref: Property Report
