The cost of properties in Hanoi is 25 times higher than the average workers wage, 5 times higher than housing in developed countries and 10 times higher than housing in developing countries according to a real estate expert.
The State is implementing a strategy to apply the necessary policies to help develop the housing market and help low income earners who struggle to find adequate housing.
Over the next five years, Vietnam aims to have 10 million square meters of housing, including housing for low income earners in urban areas, help 400,000 poor households in rural areas improve their accommodation conditions and reduce the percentage of undeveloped housing to less than 5 per cent. Meanwhile, the proportion of housing for lease would reach 20 per cent of the total housing fund to serve low income earners.
During the next ten years, Vietnam hopes to have 12.5 million square meters of housing in urban areas and help 500,000 households in rural areas improve their accommodation situation and eliminate undeveloped housing across the country
A survey of households and housing by the General Statistics Office (GSO) showed Vietnam still has 1.6 million temporary accommodations, 0.5 million apartments with an area of less than 15 square meters in urban locations and 1.5 million undeveloped houses in rural areas.
It would take an average labourer 75 years to save enough money to buy a house in Hanoi with the current house values. Former Deputy Minister of Natural Resources and the Environment, Dr Dang Hung Vo, believes the housing strategy requires investment by the State and the community if it is to succeed.
“Once the problem is settled well in Vietnam, this means that we can eliminate the housing price paradox, i.e. narrowing the gap between the average price and the annual income of workers,” he said.