The Rising Cost of Homeownership in HCMC

Workers in Ho Chi Minh City now need an astonishing 34 years' worth of income to purchase a home, up from 32.4 years last year, positioning HCMC as the fifth least affordable city globally according to Numbeo's house price to income ratio (HPR).

Comparing Affordability Across Vietnam

While HCMC's HPR soars, Hanoi's stands at 24.7, with the national average ranging between 25-26, all significantly above the global average of 15. This stark disparity highlights the growing housing affordability crisis in Vietnam.

Global Perspectives on Housing Affordability

The World Bank and the United Nations endorse the HPR as a critical measure of housing affordability. A CBRE report further underscores the severity of the situation, listing Hanoi and HCMC among Asian cities where homeownership is increasingly out of reach for the average citizen.

The Economic Divide

With average apartment prices nearing US$3,000 per square meter against a per capita income of just $7,500 annually, the economic divide in HCMC is more pronounced than in Singapore, making housing accessibility a pressing issue.

Expert Insights

Dr. Can Van Luc points to Vietnam's surging housing prices, driven by supply shortages, escalating costs, and unforeseen expenses, as the culprits behind the high HPR. Meanwhile, an expert from One Mount Group cites limited land availability and bureaucratic delays as additional barriers to affordable housing.

Looking Ahead

With land use fees and construction costs on the rise, experts warn that the gap between housing prices and income in HCMC is set to widen, further exacerbating the affordability crisis.