Price of house in vietnam are now higher than 25 times earnings a year of an average worker.

Dang Hung Vo experts - former Deputy Minister of Natural Resources and Environment.

Dang Hung Vo experts - former Deputy Minister of Natural Resources and Environment.

House prices in Vietnam are now higher than 25 times earnings a year cost of an average worker. While in developed countries this rate is four times the least-developed countries the ratio is 2 times. This is too unusual.

It is the opinion of experts Dang Hung Vo – former Deputy Minister of Natural Resources and Environment on the sidelines of a seminar on new land held in Hanoi.

Reporter: Capital Planning to Vision 2050 in 2030 the Government has been through. So he can tell the effects of planning Hanoi real estate market?

Dr. Dang Hung Vo: first, will not have much impact because we have to handle a series of projects, at least 500 projects are now reviewed to determine the fate of the project.

The Vietnam real estate market itself is currently lacking the capital, investors are so painfully endured because they can not find the sources to carry the current projects they are doing. The benefit is that the new plan is sure to be able to review the new arrangements which may continue to be, have the capacity to implement projects under the new plan.

Reporter: The planning has just approved has about 167 projects located in the green belt, many people believe that this project will be adjusted and withdrawn?

Dr.: I think the project is not necessarily always be withdrawn without the project in the green belt project, you can do elsewhere, unless a prior financial arrangement. As well as the rights of someone causing damage can not be removable, even if only as the project was granted land in that position is now possible to move away but I think no matter what. We have to review, if the position is set to malfunction plan, the project must move away in the proper functioning of the project.

Reporter: Property prices in Vietnam are too high sir?

Dr.: House prices in Vietnam are now higher than 25 times earnings a year cost of an average worker. While in developed countries this rate is four times the least-developed countries the ratio is 2 times. At future, surely property prices will fall, down to normal, but of course it must go through many times fewer transactions and cold like now, but at what time the price will drop down on the line with the living standards of workers?! Time can be in 15 years, also 30 years or 50 years.

Currently, the supply is still too small compared to source of demand, the demanding source in Hanoi not only from Hanoi workers, but most people have money in the North are keen to have the house in Hanoi. According to its many investors to take land in Hanoi is very difficult and costly struggle. So Hanoi’s house prices higher than elsewhere.

Hanoi house prices are 11.6 million m2, Ho Chi Minh from 8.5 to 10 million, Danang has only 5.2 million, why is there the big difference in price like that? while the ground is the same policy?

Could not say expensive or cheap land by the project are mostly built on land “clean”. If the difference is reasonable so far as engineers and businesses in Danang qualified management and know how to apply new technologies than other regions. I think that, behind the price difference is due to Danang use consulting team to design and apply good technology. By the quality and cost of the building depends greatly on the design consultants, supervision and technology, materials …

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