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| A complex of apartment buildings in Long Binh ward, Ho Chi Minh City__Photo: VNA |
Apartment prices in Hanoi and Ho Chi Minh City have climbed to VND 70-100 million per square meter, far outpacing income growth and pushing homeownership beyond reach. Confronting the paradox of rising demand but vanishing affordable housing, the Government has vowed not to let the market be manipulated and urged swift solutions to safeguard citizens’ right to housing.
The vanishing dream of home ownership
In a talk with VnExpress, Thanh Huong (aged 39) admitted that she had “lost all motivation to pursue homeownership. After seven years of saving, Huong and her husband were forced to abandon their dream of buying a home in Ho Chi Minh City as their income could not keep pace with rising housing prices. In 2017, she planned to save VND 1 billion and borrow another VND 1 billion to purchase a two-bedroom apartment in Phu Huu ward. By early 2023, the 67m² unit was priced at around VND 2.7 billion - already beyond their means. By August 2025, its value had jumped to more than VND 4.5 billion.
Nguyen Minh Tuan (aged 41), an IT employee in Ho Chi Minh City, faced a similar setback. Just a year ago, he intended to buy a 61m² apartment in Nha Be district for around VND 3 billion, confident that he could manage a VND 1.5 billion mortgage over 15 years. Today, the same unit is priced at more than VND 4 billion. “I can save VND 10-12 million a month, but when prices rise by several hundred million each year, it’s impossible to keep up - borrowing also becomes unmanageable,” he said.
The story is the same for those who wish to buy a home in other big cities like Hanoi and Da Nang.
Lao Dong cited a study by the Vietnam Association of Real Estate Brokers’ Institute of Research and Evaluation (VARS IRE) showing that by the end of June 2025, apartment prices had risen 87.7 percent in Hanoi, 69.8 percent in Da Nang, and 48.3 percent in Ho Chi Minh City compared to 2019. Average prices now stand at VND 75.5 million per square meter in Hanoi, VND 66.4 million in Da Nang, and VND 77.1 million in Ho Chi Minh City. It is not to mention the fact that most new and upcoming supply belongs to the high-end and luxury segments, while mid-range and affordable apartments have all but disappeared.
The Ho Chi Minh City Real Estate Association estimated that to purchase a modest two-bedroom apartment priced at VND 2 billion, a middle-income family would need to save VND 10 million per month for 20 years, assuming tight spending. With current prices at VND 4-5 billion per unit, the required savings period doubles, meaning that even a lifetime of work could not be enough to pay off a mortgage.
VnExpress quoted VARS President Nguyen Van Dinh as saying that soaring housing prices have pushed homeownership beyond the reach of most urban residents, even those with above-average incomes. Many young people who earn VND 40-50 million per month still cannot afford a home without family support, due to repayment pressure and volatile interest rates.
According to Dinh, this situation not only suppresses real demand but also directly affects decisions on marriage and childbearing, raising concerns over declining birth rates, a shrinking young workforce, and mounting social welfare burdens.
Government’s determination
“Many people need accommodation but cannot buy houses because prices are too high. With apartments costing VND 70 million or even VND 100 million per square meter, who can afford them?” Prime Minister Pham Minh Chinh asked at the first meeting of the Central Steering Committee on Housing Policy and the Real Estate Market on September 22.
The Government leader demanded convincing answers for the persistently high and rising prices, including whether the market was being manipulated, hoarded, or artificially inflated.
He stressed that the State would not sacrifice fairness, progress and social welfare for growth alone. “Citizens’ right to housing must be guaranteed,” he emphasized, affirming the Government’s resolve to build a stable, transparent and secure property market.
To achieve this, the Government ordered a strong increase in supply, especially social housing for low- and middle-income earners, while removing institutional and legal bottlenecks. Leaders at all levels were urged to innovate governance thinking, assume responsibility, and strictly address profiteering and price manipulation.
At the meeting, a series of measures were tabled: clearing stalled projects, accelerating social housing, lowering land and input costs, and improving infrastructure such as transport, utilities and telecommunications. The State will also enhance regulatory oversight, ensure efficient land use, simplify administrative procedures, and shift from pre-licensing inspection to post-licensing inspection.
On the financial side, the Government plans to apply fiscal tools such as taxes and fees to reduce costs, combined with credit instruments and housing bonds. The cabinet also instructed a review of income thresholds for social housing eligibility, giving localities flexibility to adjust.
The Central Bank will develop new mechanisms for lending rates, loan terms, and streamlined procedures, with incentives or penalties depending on banks’ performance. Local authorities are tasked with budgeting for infrastructure and interest rate support. National Housing Funds are to be established soon to channel resources into affordable housing development.
The Ministry of Construction will draft a new resolution and designate qualified, reputable enterprises to implement social housing projects, ensuring a fair balance of interests between the State, businesses and citizens.
More drastic measures needed to cool the market
National Assembly deputy Pham Van Thinh, who is Vice Chairman of the People’s Committee of Bac Ninh province, told Tuoi Tre that slow project completion and the sale of unfinished housing created room for speculation and price escalation. He proposed speeding up affordable and social housing projects while tightening rules on the sale of future homes. He also called for higher property taxes on idle land and housing, integrated into existing land-use tax laws, coupled with concessional loans to bring vacant property back into use.
Former Deputy Minister of Natural Resources and Environment Dang Hung Vo warned that while apartment supply was recovering, it was dominated by the high-end segment, leaving affordable housing for low- and middle-income groups nearly nonexistent. He stressed that speculation and price manipulation had distorted the market, even for social housing, and urged reforms in land regulations, greater cost transparency, and tougher action against artificial bidding.
Meanwhile, Le Hoang Chau, President of the Ho Chi Minh City Real Estate Association, said prices were being inflated due to insufficient genuine supply, with many mid-range projects “upgraded” and marketed as high-end. He argued that the core solution lies in removing legal bottlenecks to boost supply, alongside policies to develop both social housing and affordable commercial housing. He also proposed long-term, low-interest loans for first-time homebuyers, and emphasized the need for strong local government commitment to implementing social housing projects.
In conclusion, from everyday stories of urban families to official statistics, it is clear that housing prices in Vietnam’s major cities have far outstripped most citizens’ ability to pay. This is not only an economic challenge but also a pressing social issue. The Government’s determination, combined with expert recommendations, highlights the urgent need to address legal, financial and supply-side bottlenecks. If implemented effectively and transparently, these solutions could help rebalance the housing market, laying the foundation for stable and sustainable development.- (VLLF)
