Apartment prices have fallen in some parts of Ho Chi Minh City but remain high. For a family earning VND 40 million a month, a home priced at about VND 3 billion is more suitable than one costing VND 5 billion or more.
A DXS-FERI report said prices fell 15–20% in northern Vietnam to VND 45–160 million per square metre, and 5–10% in the south to VND 36–145 million. The adjustment differs by segment and area, so not every project fell by the same amount.
About 80% of units launched in the third quarter were high-end or luxury, priced at around VND 100–120 million per square metre or more. Industry estimates put the home-price-to-income ratio at 23–25 years, against an international benchmark of about 4–6 years.
The issue was also highlighted by Standing Deputy Prime Minister Pham Gia Tuc at a meeting on October 13.
Homes below VND 3 billion fit buyers’ finances better
Most buyers, especially younger people, have limited savings and rely on loans. A family earning VND 40 million a month with savings above VND 1.5 billion would need to borrow about 70% to buy a VND 5 billion apartment. At 12% interest over 20 years, monthly principal and interest would reach nearly VND 50 million.
Even at VND 3.2–3.5 billion, the buyer would need to borrow nearly 60%, with monthly payments of about VND 28 million, or 70% of income. Experts advise borrowing no more than 50% of the home's value and keeping monthly debt payments below 50% of income. A home below VND 3 billion is therefore a better fit for that family.
Additional savings can be used for early repayment after any penalty period ends, reducing the loan term and interest costs.
Keep an emergency fund and control the loan
Nguyen Thi Hong Van of FIDT advises buyers not to use all their cash to reduce debt. Someone with more than VND 1.5 billion should set aside over VND 200 million, equal to three to six months of essential spending, and consider health and life insurance when supporting dependents.
Cao Thi Thanh Huong of Savills Vietnam said borrowing should not exceed 50% of the property's value. Buyers with a budget of about VND 3 billion can consider Di An or Thuan An in Binh Duong Province, a smaller home or a one- or two-bedroom apartment. Lending rates are unlikely to fall sharply in the short and medium term, she said.
Experts advise focusing on loan structure and repayment. Use the grace period to save and repay early, and borrow only when payments are safe, an emergency fund remains available and there is a clear plan to reduce the balance.
Sources: Dân Trí
