The
phrase “medium cost house” for medium-income earners is used recently, however
to buy a house in this segment, a buyer needs to save money for over 50 years.
This is the housing segment with big demand in
the society and the market trend shows that more and more investors are
interested in the market. Yet, the gap between affordability of the real house
demanders and house prices remains high.
CR Richard Ellis, the real estate consulting
firm, coordinated with two market research companies namely TNS and Nielson to
carry out a survey on real estate market in Hanoi and HCM City with a view to
count how many years’ households have to save to buy a house by their current
income.
The survey supposed that each household saved
19% of their total income to buy a house, excluding debts from other sources.
Its result indicated that the high-income households with around 480 million
dong a year (40 million dong a month) have to save at least 10 years to buy a
880 million-dong apartment, 17 years to buy a 1.5 billion-dong house, and
around 31 years to buy a high-class condo at 2.8 billion dong.
The medium-income families with 160 million
dong/year (13 million dong/month) will have to save money in 30 years to buy a
low-end house, 51 years to buy a mid-end house and 96 years to buy a luxury
house.
The families with lower income of 60 million
dong/year (around 5 million dong/month) will have to save money within at least
77 years, 133 years and 249 years to buy respective houses.
The above survey of CBRE may not reflect fully
but it partially showed that people hardly buy houses with their income and
without using other finance sources, relatives or banks.
According to CBRE, the house price is tending
to fall in last three years and the sale ratio on stockpile volume also is
going down from the first quarter of 2010. At this time, the sales become a
nightmare for investors as the sentiment and trust of people in the market
slumped sharply.
Data showed that around 5,000 condos were
offered in Q1 of 2011 and the sale was less than a half. Similarly, 4,900
houses were offered in Q2 but only 1,400 of which were sold. And 850 of 1,100
offered houses were taken.
Luxury real estate projects in centre cities
still may be sold to customers whereas other projects (if not yet started in
construction) will be driven to medium-class condo segment with the price of
lower than 21 million dong per square meter.
VietBiz24
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