An individual with a combined income of VND30 million can get a bank loan to buy an apartment costing VND2-2.5 billion, financial and property analyst Dinh The Hien said at a recent forum hosted by Tuoi Tre newspaper in HCMC.

But they would need to tighten their belts and maintain rigorous financial discipline for many years, he said.

With a loan of 70% of the apartment’s price for a 20-year term and a subsidized interest rate of 7-8%, monthly installments would range from VND10-12 million, he said.

But after the subsidy ends, interest rates would climb to 10-12%, pushing monthly payments to VND13-15 million or nearly half of the buyer’s income, he pointed out.

Properties in Ho Chi Minh City, January 2025. Photo by VnExpress/Quynh Tran

He suggested that young people should only consider borrowing after having a steady job for at least three years, earning over VND30 million a month, and accumulating savings of around VND500 million.

Given the high primary market prices, buying an apartment on the secondary market makes more sense, he added.

Owning a home is gradually becoming a pipe dream for many people as property prices keep rising.

Some developers and banks have been offering mortgage options to help increase affordability.

Le Huu Dang of developer Nam Long Group, said that a family with a combined income of VND30 million can pay for a home over 30-40 years at the rate of VND10 million a month.

But it requires them to be frugal, he added.

Many analysts say however that even with subsidized interest rates buying housing remains out of reach for most people.

Le Hoang Chau, chairman of the HCMC Real Estate Association, said credit policies and limited housing supply pose barriers for young people buying homes with their salaries.

While banks offer loans for up to 35 years, interest rate subsidies are typically provided for three years at most.

“This makes young people hesitant, as they cannot predict future interest rates,” Chau said. Buying a home often means “mortgaging one’s working life.”

“Many families want to buy apartments, but there are no products they can afford.”

Hien said collaboration between developers and banks and supportive government policies are crucial to ensure affordability.

If the legal framework enables the smooth launch of housing projects and businesses focus on affordable segments, opportunities would widen for low-income earners, he said.

Nguyen Xuan Quang, chairman of Nam Long, agreed that affordable housing requires coordinated efforts.

Developers must cut costs and the government should reduce licensing fees to make housing affordable, he said.

“If we rely solely on people’s savings, the market will become increasingly imbalanced.”