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Rapid population growth creates housing burden in urban areas

The rapid population growth is putting a lot of pressure on housing in Vietnam’s urban areas.
Rapid population growth creates housing burden in urban areas ảnh 1Illustrative image (Source: VNA)

Hanoi (VNA) –
The rapid populationgrowth is putting a lot of pressure on housing in Vietnam’s urban areas.

According to Chairman of the Vietnam UrbanDevelopment Association Tran Ngoc Chinh, the urbanisation rate in Vietnam isexpected to reach 40 percent in 2019 and early 2020. In 1999, the rate stood atonly 21.7 percent.

Along with the rapid speed of urbanisation, theaverage annual population growth rate in urban areas ranges from 2-3.4 percent,which has led to an increasing demand for houses, said Nguyen Tran Nam, formerDeputy Minister of Construction and Chairman of the Vietnam Real EstateAssociation (VNREA).

Experts said that the Ministry of Construction hasplayed an important role in urban development and planning to ease thispressure, with local administrations in new urban areas implementing tasksgiven.

However, increasing urbanisation in 2018 helpedthe real estate and construction materials market gain positive growth. Theaverage floor area of houses nationwide was estimated at 24 sq.m per person, up0.6 sq.m from 2017.

In 2018, Vietnam had roughly 25.5 millionhouseholds, nearly 65 percent of which were small-scale (two to four family members).The proportion of single-person households made up about 8 percent, but hasbeen increasing rapidly over the past five years.

Nam said this is an important factor inre-orienting the development of real estate products.–VNA
 
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