People should stop expecting real estate to become cheaper

February 13, 2024 | 03:00 pm PT
People should stop expecting real estate to become cheaper
A house on an undeveloped plot of land in Thu Dau Mot City, Binh Duong Province. Photo by VnExpress/Phuoc Tuan
Older generations had to wait decades for their properties to rise to the current prices, so younger generations should do the same instead of complaining about expensive real estate.

I reside in a residential area in the Binh Duong Province, which is adjacent to Ho Chi Minh City’s Thu Duc City.

It is a small neighborhood comprising several dozen houses where one can encounter dialects from all three regions of the nation.

Migrant workers came to this area years ago to make a name for themselves, all the while living in cramped boarding houses.

Now, everyone here has their own houses thanks to decades of hard work and saving, and a bit of luck.

For instance, a couple selling groceries in my neighborhood was fortunate enough to have a house situated on a major road.

They mentioned that about 15-20 years ago, the neighborhood was a poor area with no street lights and a road that was only wide enough for a motorcycle to pass through.

At that time, they saved and borrowed an additional VND250 million (US$10,235) to purchase the plot of land. They only received a hand-written note confirming the transaction and were only able to secure an official land title much later.

Now, they have a well-constructed and beautiful home.

Last year, someone offered VND5 billion to buy the house for business purposes and the couple are considering selling it to move to another house on a smaller alley.

I came here much later when the roads had already been developed and widened. By then the land price here had risen, but it was still affordable.

I remember when I first moved here, the streets were so deserted that I always tried to return home before 9 p.m. due to fears of robbery.

A few years later, many families came here to build houses, coffee shops and restaurants, making the area more bustling.

Many people hope that house prices will decrease when the revised Land Law takes effect.

I, however, do not share this view.

The new law might stabilize real estate prices and curb speculation, but it definitely cannot reduce house prices as many people anticipate.

And even when prices have stabilized, many people will compete to purchase homes and land, so properties near city centers will not be any easier to buy.

Therefore, like the families in my neighborhood, if you cannot buy a house, you should purchase land in undeveloped and secluded areas like the city's outskirts and then wait for it to develop.

Previous generations did so and waited for 15, 20 years or even half of their lives.

So the current generation not being able to buy a house at a young age is not necessarily an unjust thing.

So what is your viewpoint on this matter?

Reader Vinh Phan

*This opinion was translated into English by AI. Readers’ views are personal and do not necessarily match VnExpress’ viewpoints.

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