{"id":1091,"date":"2019-12-14T23:59:30","date_gmt":"2019-12-14T16:59:30","guid":{"rendered":"https:\/\/35.220.254.114\/wp\/?p=1091"},"modified":"2021-08-24T18:28:56","modified_gmt":"2021-08-24T11:28:56","slug":"industries-city-house-prices-well-beyond-reach-for-fresh-graduates","status":"publish","type":"post","link":"https:\/\/hanssip.net\/?p=1091&lang=en","title":{"rendered":"Industries City house prices well beyond reach for fresh graduates"},"content":{"rendered":"\n

\n\tFresh graduates working in Vietnam\u2019s two most developed cities, who make on average VND72 million ($3,100) a year, are losing out and unlikely to be able to buy houses<\/a>\n as incomes cannot keep up with real estate prices, according to data \nproduced by recruitment firm Navigos at a recent real estate forum.<\/p>\n\n\n\n

\n\tFor more experienced employees who make VND120 million ($5,200) a year \non average, the price of basic 2-bedroom flats in the two major cities \nremains 17 times higher, while for supervisors and team leaders who make\n VND192 million ($8,300), it is 7 times higher, Navigos says.<\/p>\n\n\n\n

\n\tManagement or heads of departments, who make on average VND264 million \n($11,400) a year, can pay for one such flat in seven years, it adds.<\/p>\n\n\n\n

\n\tYoung people are finding it next to impossible to buy houses even as \nnew supply of affordable apartments slows down to a trickle. In 2016, \nthe supply of Grade C apartments, which are said to be in the \n“affordable” category, accounted for 30 percent of the HCMC market, but \nthis figure had fallen to around 17-19 percent by 2018, said Pham Lam, \nChairman of real estate firm DKRA Vietnam.<\/p>\n\n\n\n

\n\tIn 2019, the chances of buying a house have fallen even lower for young\n people because the market no longer has any property costing between \nVND1.1-1.5 billion ($43,150-64,700), said Lam, citing a recent DKRA \nVietnam third-quarter report.<\/p>\n\n\n\n

\n\tIn the past 3-5 years, the prices range of apartments in grades C and B\n (mid-range) have surged from VND16 -21 million ($690-906) per square \nmeter to VND25-36 million ($1,080-1,550) per square meter, Lam said.<\/p>\n\n\n\n

\n\tAnd with most flats in condominium projects in recent quarters priced \nat around VND30 million ($1,300) per square meter, Ho Chi Minh City no \nlonger has affordable apartments for young workers who earn below a \n“decent salary” of VND20 million ($863) a month, he added.<\/p>\n\n\n\n

\n\tHuynh Phuoc Nghia, deputy head of the international business and \nmarketing department at the HCMC University of Economics, said it is now\n impossible for young workers to buy homes based on their savings alone.<\/p>\n\n\n\n

\n\tEven in the last three years, from 2016 to 2018, land prices had risen \n50-100 percent in some areas and 300-400 percent in others, while most \npeople who bought property during these years used cash generated from \nbusiness activities, production and financial investments, Nghia said, \nciting a survey conducted by his department.<\/p>\n\n\n\n

\n\tThe supply of affordable apartments has been declining because \ninvestors typically focus on premium projects which are more profitable,\n the Ho Chi Minh City Real Estate Association<\/a> said in a November report.<\/p>\n\n\n\n

\n\tSocial housing projects struggle to get completed for various reasons<\/a>\n including a lack of credit. Since a VND30 trillion ($1.3 billion) line \nof credit extended by the government to revitalize the real estate \nsector ended in 2016, over 200 social housing projects have been left \nunfinished in the country, according to a recent report submitted to the\n National Assembly by the Ministry of Construction.<\/p>\n","protected":false},"excerpt":{"rendered":"

An average, basic two-bedroom flat in HCMC and Hanoi costs VND2 billion ($86,300), 28 times higher than the average annual salary of fresh graduates. <\/p>\n","protected":false},"author":152527,"featured_media":1092,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[28],"tags":[],"_links":{"self":[{"href":"https:\/\/hanssip.net\/index.php?rest_route=\/wp\/v2\/posts\/1091"}],"collection":[{"href":"https:\/\/hanssip.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hanssip.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hanssip.net\/index.php?rest_route=\/wp\/v2\/users\/152527"}],"replies":[{"embeddable":true,"href":"https:\/\/hanssip.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1091"}],"version-history":[{"count":2,"href":"https:\/\/hanssip.net\/index.php?rest_route=\/wp\/v2\/posts\/1091\/revisions"}],"predecessor-version":[{"id":1094,"href":"https:\/\/hanssip.net\/index.php?rest_route=\/wp\/v2\/posts\/1091\/revisions\/1094"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hanssip.net\/index.php?rest_route=\/wp\/v2\/media\/1092"}],"wp:attachment":[{"href":"https:\/\/hanssip.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hanssip.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hanssip.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}