Affordable housing for young buyers a win-win: HoREA
Affordable housing for young buyers a win-win: HoREA
Young determined people who will likely double or triple their income in 10-15 years, will be low risk for commercial banks, said HoREA
People line up to register for land auctions in Hoài Đức District, Hà Nội. — VNA/VNS Photo |
The HCM City Real Estate Association (HoREA) has urged to the State Bank of Vietnam (SBV) to establish a mechanism allowing young buyers, those aged 18 to 45, to access home loans at reasonable commercial interest rates at around 6-7 per cent per year. These loans, secured by the purchased property, would have a repayment term of 10-15 years, helping more young people enter the housing market.
"Most young people are ambitious and have a long career path ahead of them to generate income and repay loans. Typically, within 10-15 years, their earnings will double or triple, making such loans low-risk for the banks," the association said.
The body has also sent a proposal to the government advising measures to encourage the development of affordable commercial housing. The association recommended a price cap of VNĐ35 million (US$1,400) per square metre and a maximum unit price of VNĐ3 billion ($117,000).
On Tuesday, Prime Minister Phạm Minh Chính chaired a meeting with representatives from commercial banks, where he stressed the need for stronger housing credit policies.
The Prime Minister directed the SBV and commercial banks to explore and implement preferential credit packages to support social housing development. These packages aim to provide housing for young people aged 35 and under, as well as for disadvantaged individuals. He also stressed the importance of eliminating makeshift and dilapidated housing across the country, highlighting the need to improve living conditions and ensure access to affordable housing.
The banking sector has implemented several lending programs for social housing and worker housing. According to SBV Governor Nguyễn Thị Hồng, credit for social housing plays a crucial role. However, she urged the Ministry of Construction to work closely with local authorities to accurately report demand and develop targeted policies.
“For example, some young people prefer renting over buying, so credit policies must be flexible to reflect real needs,” Hồng said.
In recent years, soaring housing prices in major cities have made homeownership increasingly difficult, particularly for younger people.
According to a 2024 report from the Ministry of Construction, apartment prices in Hà Nội have soared by 40-50 per cent since 2023, with price surges concentrated in specific projects and districts. In HCM City, prices have risen by 20-30 per cent year-on-year, with certain areas experiencing even sharper increases. These rising costs further underscore the urgency of government and industry efforts to make housing more accessible.
The Vietnamese government aims to construct at least one million social housing units for low-income earners and industrial park workers by 2030. However, over the past three years, only 75 projects, comprising 39,884 units, have been completed nationwide, achieving less than 10 per cent of the five-year plan.
