Business · Economy · 2 hrs ago
Southeast Asia has unsold homes as first-time buyers struggle to afford housing
In parts of Southeast Asia, unsold homes are piling up even as young buyers struggle to find affordable housing.
Analysts say the problem is a mismatch between the homes being built and what aspiring buyers can afford.
Speculative investment, financing hurdles and poor locations are among the factors leaving properties empty.
In Vietnam, the issue is linked to what developers build and the returns they expect.
Researcher Nguyen Khac Giang says reliance on land to finance growth can favour property investment over the needs of new urban families.
The mismatch matters because empty homes coexist with demand for affordable housing, leaving first-time buyers with few homes they can afford.
Unsold homes are accumulating in parts of Southeast Asia even as young first-time buyers struggle to find affordable housing.
Analysts say the homes being built do not match what aspiring buyers can afford.
Speculative investment, financing hurdles and poor locations are cited as reasons properties remain empty.
In Vietnam, the mismatch is linked to what developers build and the returns they expect.
Researcher Nguyen Khac Giang says reliance on land to finance growth can favour property investment over the needs of new urban families.
- Who
- Developers face unsold housing stock, while young buyers struggle to afford homes.
- What
- Parts of Southeast Asia have unsold homes despite demand for affordable housing.
- When
- Not stated.
- Where
- Parts of Southeast Asia; Vietnam is discussed as an example.
- Why
- Analysts point to speculative investment, financing hurdles, poor locations and a mismatch between homes built and buyers’ budgets.
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- Region
- Parts of Southeast Asia
- Country discussed
- Vietnam
- Researcher
- Nguyen Khac Giang, visiting fellow at Singapore’s ISEAS – Yusof Ishak Institute