Ho Chi Minh City ranks first in Southeast Asia in terms of property price-to-income ratio, showing that its apartments are the least affordable in the region, according to the latest data.
Of nine cities surveyed in the region, HCMC topped the list with a ratio of 36, followed by Manila in the Philippines with 35.7 and Bangkok in Thailand with 31.8, according to a survey by price tracking platform Numbeo.
A higher price-to-income ratio indicates lower affordability.
Phnom Penh in Cambodia ranked fourth with 29, followed by Jakarta in Indonesia with 20 and Hanoi with 18.5.
It costs an average of $4,700 to buy a square meter of apartment in central HCMC, 7.2 percent more than in second-place Manila, said Numbeo, which bases its calculations on the data provided by the contributors. This figure is double that of Hanoi.
HCMC also ranks first in price-to-rent ratio in the city center with 37, followed by Bangkok with 31.8 and Singapore with 30.3.
Analysts said residential real estate prices have increased in recent years in HCMC as developers prioritize building high-profit luxury units, leaving the affordable segment with almost zero supply.
The average cost of an apartment in the middle price segment in HCMC, with an area of 70 square meters and including two bedrooms and two toilets, is 4-4.5 billion VND, according to data from the company. Cushman & Wakefield real estate services. This represents 16 to 17 times the average income of urban households.
A survey by real estate consultancy Savills found that without financial support from family, the minimum income required to buy a house in HCMC is VND30 million to VND45 million ($1,270 to $1,900) per month. .
