Vietnam's Housing Surge: Bridging Affordability and Growth

Vietnam's prime minister has urged for increased house building amid soaring real estate prices. With property costs outpacing many citizens' affordability, Pham Minh Chinh aims to streamline procedures for developers and offer reasonable interest rates. The focus is on rapid and sustainable economic growth through proper housing policies.

Vietnam's prime minister is taking steps to address the country's escalating real estate prices by advocating for more house building. Pham Minh Chinh highlighted the growing dilemma faced by many residents unable to afford property due to soaring prices, as revealed by state broadcaster VTV.

City apartment prices in Vietnam have surged 5.6% this year, reaching an average of 80 million dong per square meter. This hike in real estate costs contrasts sharply with the annual salary of Vietnamese workers, which stands at 98.4 million dong.

To tackle this, Chinh pledged procedural reforms for developers, and policies for affordable real estate loans. He emphasized on developing social housing projects to support low-income earners, aligning with the nation's goal for rapid yet sustainable economic growth while managing inflation.

(With inputs from agencies.)