Vietnam's Expensive Housing Risks Affordability Crisis

 

In some Vietnamese cities, it is not hard to find apartments that cost millions of dollars. But on the same streets, small, poor houses made of metal sheets can be seen.

The low end and the high end of the country’s property market are well established. But, what about all the other people in between the two extremes?

Need for affordable¹ housing

The growing middle class and working class in Vietnam have an increasing demand for new housing. If this demand is not met, the country could experience the kinds of affordability² crises³ seen in countries like Brazil or Ireland.

Jones Lang LaSalle Incorporated⁴ is a real estate services company in Vietnam. Its data show that there is more housing in the luxury, premium⁵ and middle-end price level available on the Ho Chi Minh City market this year. And there is not as much housing that is affordable.

Some real estate developers are starting to pay attention to this demand. Phu My Hung Development Corporation seeks to sell homes to middle class buyers. It is raising about $75 million to develop a town in a rural area about 60 kilometers away from the capital, Hanoi.

Gary Tseng is the chief executive⁶ of the Phu My Hung Development Corporation. He said the investment will help the business develop new townships using a sustainable growth model—meaning environmentally friendly.

The real estate developer takes its name from an area of southern Ho Chi Minh City known for organized city planning. Tseng said the Phu My Hung area is a model of “a sustainable city with efficient water, power, and transit⁷” that “can and should be” copied.

More apartments in the luxury, premium and middle-end price levels have come on the market this year in Ho Chi Minh City, but not as many at the affordable level.

Townships like Phu My Hung are built up from nothing. This is unlike places such as the United States, where many older houses regularly are bought and sold. In Vietnam, the real estate market often involves people buying land and then building their own houses on it.

Government plans for growth

In recent years, the government has approved $1.3 billion for what it calls social housing projects. However, that amount has not been enough to meet the demand for affordable housing.

Vietnam’s fast economic growth has meant that cities are expanding with little or no planning. This is especially true in the two biggest cities -- the capital of Hanoi in the north and the business center of Ho Chi Minh City in the south. This could mean that many people living in those cities might not be able to afford to buy a home.

I’m Anne Ball.

Words in This Story

affordability – n. to be able to pay for something

real estate –n. property which includes land or buildings

luxury – n. a condition or situation of great comfort, ease, and wealth, often used before another noun

premium – adj. high or higher than normal

middle-end –adj. neither too high or too low

township – n. a unit of local government in the U.S.

efficient – adj. capable of producing desired results without wasting materials, time, or energy

transit – n. capable of producing desired results without wasting materials, time, or energy

1 affordable   

adj.支付得起的，不太昂贵的

参考例句：

• The rent for the four-roomed house is affordable.四居室房屋的房租付得起。
• There are few affordable apartments in big cities.在大城市中没有几所公寓是便宜的。

2 affordability   

可购性

参考例句：

• Performance-Based Logistics Affordability: Can We Afford Categorical Conversion to Performance-Based Acquisition? 基于性能的后期的可承受性：能否担负得起向基于性能的采办的无条件的转变？
• There would be no crisis of affordability, as't for food or clothing. 就想食物与服装一样，因为供给没有危机。

3 crises   

n. 危机；危险期

参考例句：

• Economic crises recur periodically. 经济危机周期性地发生。
• Great crises often call forth gifted leaders. 危急存亡之际常能产生天才的领袖。

4 incorporated   

a.结合的，并为一体的

参考例句：

• Many of your suggestions have been incorporated in the plan. 你的很多建议已纳入计划中。
• These conditions must be expressly incorporated into the contract of employment. 这些条件都必须明确地写进雇佣合同之中。

5 premium   

n.加付款；赠品；adj.高级的；售价高的

参考例句：

• You have to pay a premium for express delivery.寄快递你得付额外费用。
• Fresh water was at a premium after the reservoir was contaminated.在水库被污染之后，清水便因稀而贵了。

6 executive   

adj.执行的，行政的；n.执行者，行政官，经理

参考例句：

• A good executive usually gets on well with people.一个好的高级管理人员通常与人们相处得很好。
• He is a man of great executive ability.他是个具有极高管理能力的人。

7 transit   

n.经过，运输；vt.穿越，旋转；vi.越过

参考例句：

• His luggage was lost in transit.他的行李在运送中丢失。
• The canal can transit a total of 50 ships daily.这条运河每天能通过50条船。