Illogical elements in residential real estate market in HoChiMinh city and solutions

Abstract

By first observation, researcher recognizes the difficulty of young and low income people in Ho Chi Minh City in struggling for a dwelling unit. This is the primary premise for further study on residential real estate situation in HCMC so far. The objectives of this thesis are first to review illogical factor between incomes of buyers and prices of lodging units; second, the reasons for high price are also learnt; and finally, several recommendations to alleviate the harsh conditions of housing occupancy. In order to find the final answer, either qualitative or quantitative is used via in-depth interview and mathematical approach. The results of this study are: illogical factor between income and price is influencing many people in big city like HCMC; the reasons for high price are initially caused by high project cost, especially the land cost and the main construction cost, and by speculation; subsequently, the research suggests some solutions focusing on land cost, construction cost, and speculation issues as well. The significance of this study is to make residential units more affordable for young and low income

people in HCMC and other big cities in Vietnam also.