To be able to buy an apartment in Hanoi, buyers need a minimum income ranging from 45 million to 210 million VND/month.
About 2.3 to 10 times higher than the average household income in Hanoi
The Vietnam Association of Realtors (VARS) said that the recommended minimum income to buy an average-priced house in Hanoi is about 2.3 to 10 times higher than the average household income in Hanoi.
VARS cited data from the General Statistics Office, the average monthly income of workers in Hanoi in the third quarter of 2024 reached VND10.7 million/month. Assuming a household of 4 people, of which 2 are of working age, the total household income will be about VND21.4 million/month.
“With the average primary apartment price in 2024 reaching VND70 million/m2, and new projects opening for sale all priced from VND60 million/m2, to be able to buy an apartment in Hanoi, buyers need a minimum income ranging from VND45 million to VND210 million/month, depending on the area,” said VARS.
In particular, in central districts such as Hoan Kiem, Ba Dinh, Dong Da, Hai Ba Trung or Tay Ho, the gap between the minimum annual salary required to pay the mortgage and the average household income is up to 10 digits.
Even in suburban areas such as Ha Dong, Bac Tu Liem or Long Bien, the prices are more accessible, but are only suitable for individuals and households with incomes from VND40 – 60 million/month.
VARS’s calculations are based on the average house price in each district and assume that buyers can borrow 70% of the house value from the bank at an average interest rate of 8%/year for 20 years.
According to financial principles, the total monthly installment should not exceed 40% of income, so the recommended minimum income to buy an average-priced house in Ha Dong, Long Bien, Nam Tu Liem, Bac Tu Liem, Gia Lam is about 2 to 3 times higher than the average household income of Hanoi workers.
In Hoan Kiem, Ba Dinh, Hai Ba Trung, Dong Da or Tay Ho districts, the required minimum income is all above 1 billion VND/year, equivalent to a difference of about 3.7 to 8 times. In Cau Giay and Thanh Xuan districts, the difference is 3 to 3.5 times.
This means that buying a house in Ha Dong, Long Bien, Nam Tu Liem, Bac Tu Liem, Gia Lam districts is more feasible for households with typical incomes, provided they are willing to “bear” the cost burden, spending more than 40% of their income on monthly installments.
New land price list will impact business groups
Commenting on apartment prices in Hanoi, in an interview with Lao Dong, Dr. Nguyen Van Dinh – Chairman of the Vietnam Association of Realtors (VARS), said that the new land price list has increased dramatically, which could increase housing prices in Hanoi in 2025.
Mr. Dinh said that it is necessary to consider the negative impacts when land prices are based on the current market, where supply is low – demand is high, prices are pushed up or abused. “If this “virtual price” is used as a legal basis, there is a risk of creating a vicious cycle: Real estate prices continue to increase, making it difficult for people to access, while businesses are under great pressure on costs,” said Mr. Dinh.
According to Mr. Dinh, Hanoi’s new land price list will affect business groups, including financially capable businesses: Able to meet the new price level but have to increase product prices, putting pressure on the market.
Small businesses with weak finances: Face the risk of stopping operations or having to transfer projects. However, the law stipulates that financial obligations must be fulfilled before transferring, adding to the difficulties.
Enterprises renting land for production and business: Must bear higher rental prices, leading to increased product costs, reducing competitiveness in the context of cheap imported goods flooding in.
“These consequences not only reduce investment attractiveness but can also hinder long-term economic development, and land revenue, although increasing in the short term, is difficult to sustain,” he said.
Therefore, he proposed the solution of developing a method for calculating land prices based on the mindset of stimulating development, instead of focusing only on increasing budget revenue. Perfecting standard measurement tools, issuing periodic real estate price indexes, similar to stock indexes, to ensure prices are close to reality.
