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Affordable home shortage plagues Vietnam

Christian Fernsby ▼ | October 13, 2020
The housing market has an oversupply of mid and high priced units but a shortage in the affordable segment despite large demand.
Vietnam home
Shortage   Vietnam home
Demand for houses and apartments in the former category, priced at VND25 million ($1,078) per square meter onwards, only accounts for 20-30 percent while the remaining 70-80 percent of the demand is for affordable housing, according to a recent government report.

Topics: Vietnam

The report, compiled by the Ministry of Construction for the National Assembly, said residential property prices are bloated, volatile and out of reach of most people.

The ministry blamed this on the lack of funding for social housing programs, pointing out there is no channel for mobilizing long-term investment for it.

The lack of funding recently caused the construction of 221 social housing projects around the country to be delayed or scrapped.

The report said so far 249 social housing projects with 104,200 units have been built and another 263 with 215,800 units are being developed.