Hanoi residents need nearly $1,800 monthly to afford a home, double the average income: study

The capital’s per capita income is VND10.7 million per month, meaning a married couple earns around VND21.4 million on average, and needs to double that to be able to buy a VND3.5-billion apartment measuring 50 square meters, the Vietnam Association of Realtors (VARS) has worked out.

This assumes that buyers can borrow 70% of an apartment’s price from banks at an average interest rate of 8% for 20 years.

Apartment buildings in the west of Hanoi. Photo by VnExpress/Giang Huy

In some districts such as Hoan Kiem and Tay Ho, people need to earn 3.7-8 times the average income to become homeowners.

The big gap between income and housing prices in Hanoi has also been noted by property services company CBRE.

This places Hanoi among the top cities in Asia in terms of this gap, even surpassing Singapore, it said.

The average apartment price in the Vietnamese capital is similar to rates in other cities in the neighborhood at $2,600 per square meter, while its average income is significantly.

"With this disparity, workers in Hanoi have even less access to housing than those in Singapore," CBRE said.

A sharp rise in prices in recent years has sadly forced many people to give up their homeownership desire.

A recent survey by VnExpress of over 7,500 readers found that nearly 40% do not want to buy a house due to the high prices.

VARS chairman Nguyen Van Dinh said the affordable housing segment has almost disappeared from the city, and only wealthy people could afford houses.

This is creating a speculative bubble, he warned.

"Developers should offer more reasonable prices that align with the needs and affordability of the people."