Save 50-80 Years to Buy a House

According to the Ministry of Construction, the average price of apartments increased by about 5% to 6.5% in the second quarter and 25% annually, depending on the area and location. Apartment prices have increased not only in newly opened projects but also in many old apartments that have been used for many years.

With apartment prices ranging from 50 to 80 million VND/m2, the supply of affordable apartments on the market is almost non-existent. This price creates a heavy financial pressure on people with low and middle incomes, making owning a private home challenging and difficult.

The Financial Burden of Home Ownership

The average salary of workers in big cities like Hanoi and Ho Chi Minh City ranges from about 10-15 million VND/month. Assuming a worker saves 30% of their monthly income (about 3-4.5 million VND), after 1 year they can save about 36-54 million VND. If they want to buy a house for 3 billion VND, they need to save continuously for about 55-83 years just to reach that amount (not taking into account living expenses and inflation).

However, most workers cannot save the entire amount to buy a house. Many people choose to take out a bank loan with a repayment period of 15-25 years, but this still places a large financial burden on the buyer.

The Ideal House Price

The ideal house price should only be equivalent to about 6-10 years of average income, making it easily accessible to young people.

The Dream of Home Ownership is Becoming More Distant

Owning a home in the city is becoming an increasingly difficult dream for many people. They choose to rent a house or buy land in the countryside instead of trying to own a house.

Many young people find that returning to their hometowns to buy land not only helps reduce financial burdens but also opens up new investment opportunities at lower costs than living in the city.

A Personal Story

Mr. Nguyen Huu Hau, 35 years old (from Thai Binh), said that his income is about 25 million VND, and his family of 4 still lives in a rented house in the city. Behind this salary is my whole struggle, when I first started working, my salary was only 5 million VND. Every month when I receive my salary, the rent, child care, electricity and water bills, money sent back to my hometown, living expenses… are almost gone. The family’s savings depend on my wife’s salary of 10 million VND.

I find myself stuck with this salary of 25 million, because it is very in-between, it is not much to say, but it is not little to say. This salary of mine covers the family’s living expenses, making me not dare to change jobs or look for other opportunities. Because now it is difficult, finding a job is not easy, if I do not fit in with the new place, family life will be more difficult. But as the breadwinner of the family, this salary is not enough to buy a house, not enough to buy a car, not enough to give my wife and children a more complete life.