Young people buying a house: Do they choose price or distance?

But house prices are rising rapidly, “inversely proportional” to income, not to mention that the problem of slippage due to inflation has kept young people from the dream of buying a home indefinitely late.

Ho Chi Minh City: Suburbs Still Red Eye Looking For Apartments At Less Than 2 Billion VND

Demand for apartments of over 2 billion VND is getting a lot of attention from people. In Ho Chi Minh City, every year the number of young people increases, it is more urgent to find adequate housing with financing at any time.

However, in reality in Ho Chi Minh City, the number of apartments in this segment is extremely low. According to experts, the supply of this group was recorded at the lowest level in the last 5 years. The latest report on the situation of apartments in the third quarter of 2020 from DKRA Vietnam shows that the segment of high-end apartments continues to lead the market, accounting for 87.2% of the offer; Meanwhile, the supply of the mid-range apartment segment is still missing (at the level of around 2 billion VND).

And CBRE Vietnam said that apartments over 2 billion VND are becoming scarce as an unavoidable rule when entry costs from land prices, construction, infrastructure connections … are rising rapidly. Investors are also not interested in investing in this segment because the profit is low compared to other apartment segments. On the other hand, in the context of the land fund in the center of Ho Chi Minh City becoming increasingly scarce, investors who own the central “land lot” with a clean law will definitely aim to develop apartments of high-end to match the potential of the position.

Certainly young people will no longer “think” of a house in central Saigon, but the suburbs still don’t have the right price to own. Mr. Pham Hoang Duy (who lives in Thu Duc district) said that he and his wife have a total income of around 35 million / month, accumulated around 700 million after 5 years of work. Preparing to pick up her first child, she decided to buy an apartment in this area or in District 9. But since the establishment of city policy. Thu Duc, in addition to the upcoming Metro Line 1 operation, house prices here continue to rise unabated, in some places up to 30%.

For example, the apartment project in Phan Chu Trinh Street, District 9, has increased dramatically from 35 million / m2 to 45 million / m2. “Initially my wife and I planned to buy a 75m2 2PN apartment for 2.6 billion in this project, but now it comes to 3.4 billion. With this amount, although the bank backs up to 70% of the loan, my wife and I cannot afford the monthly principal and interest payment of up to 30 million dong. Housing in Saigon is really too difficult to own, even if it is not central.“- said Mr. Duy.

Housing season in Binh Duong, working in Ho Chi Minh City: is it possible?

The supply of affordable apartments with affordable prices is increasingly exhausting in Ho Chi Minh City, raising the problem of “brain balance” that forces young people to choose: price or distance. Choosing Saigon should have a high price, choose a reasonable price, you should not ask the distance. And neighboring areas such as Dong Nai and Binh Duong, which are positioned to become satellite cities of Ho Chi Minh City, are gradually becoming the trend of choosing residence for young people.

With the aim of reducing population pressure in the city center, satellite city development is becoming a priority “golden strategy” for development. To achieve these results, the transportation infrastructure that conveniently connects these areas with Ho Chi Minh City is the key point to focus on investment and development.

For example, in 2016, the Ho Chi Minh City People’s Committee approved the plan to extend Metro Line 1 (Ben Thanh – Suoi Tien) to Bien Hoa in Dong Nai and Di An in Binh Duong. Not just Metro, a number of other key transportation projects in Binh Duong are also continuously rolling out, making this place a “good land” for the youth settlement dream. Even buying a house in Binh Duong can still go to work in Ho Chi Minh City is no longer an incredible thought.

Ms. Ha Thi Thu Thuy – Deputy Managing Director of Lyn Property, the developer of the Anderson Park project in Thuan An City, Binh Duong said: “In choosing Thuan An to develop Anderson Park, we saw great potential in this area which is very suitable for young people thanks to its reasonable price, full traffic connection when the distance to Ho Chi Minh City is only 30-45 minutes“

Specifically, around Anderson Park there is a network of major roads such as Highway 13 and DT 743 to help residents get to Ho Chi Minh City quickly and conveniently in 30 minutes. Recently, the People’s Committee of Binh Duong Province just approved the investment in the construction of 2 elements of overpasses at the junction of An Phu 6 and 550. These two elements belong to the investment project to improve and expand the DT road 743. the section from Ong Cu Temple to Song Than Overpass to reduce vehicle pressure and reduce travel time to Ho Chi Minh City.

Anderson Park belongs to an urban population with a scale of more than 50,000 m2, the largest sight in the Binh Duong area today. Phase 1 will roll out 4 blocks, which are expected to supply around 2,400 apartments to the market. According to the developer, the price of 1-bedroom apartments is about 1.6 billion. Guests only need to own a starting capital of about 480 million, pay 1.5% per month (25 million). Additionally, Lyn Property is also affiliated with Vietcombank to create financial leverage so that clients have many options. Specifically, Vietcombank will support loans of up to 70% of the value for a maximum of 20 years, each month, clients will pay between 15 and 18 million of both principal and interest. The loan is also stylish and has a free interest rate for 24 months.

“The fact that Ho Chi Minh City is running out of apartment supply of around 2 billion VND is undeniable. So if you think about choosing between distance or price, the dream of settling down forever cannot be achieved.. “Ms. Ha Thi Thu Thuy added emphasis.

Phuong Nghi – Truong Thinh