November 16, 2023 | 06:30 GMT+7

Property prices up over past decade

Thanh Xuân -

Construction ministry considers it necessary to increase urban housing supply by 70 million sq m each year to cater to rising demand.

Real estate prices in Vietnam have increased multiple times over the past ten years, the Vietnam Association of Realtors (Vars) has reported. Average house prices in 2021 alone grew in the double digits, even multiplying several times compared to the same period in previous years.

Low interest rates and record-high inflation are contributing factors to the sharp increase in house prices, but the core issue is the decline in housing supply, Vars believes.

According to the Ministry of Construction, based on population growth and current housing demand, it is necessary to increase urban housing by 70 million sq m annually.

Therefore, with the current development of housing supply, Vars estimates that Vietnam faces a shortage of about 300,000 housing units a year due to the emergence of new urban households and especially the preference among the younger generation to “live separately” from large families.

This serious shortage is certain to push housing prices even higher.

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