In parts of Southeast Asia, unsold homes are piling up as developers struggle to clear housing stock – yet young buyers hoping to land their first property still cannot find an affordable home.
The paradox reflects a growing mismatch between the homes being built and what aspiring buyers can afford, according to analysts, who point to speculative investment, financing hurdles and poor locations as factors leaving properties empty even amid demand for affordable housing.
In Vietnam, the problem centres on what developers have built and the returns they expect, according to Nguyen Khac Giang, a visiting fellow at Singapore’s ISEAS – Yusof Ishak Institute. His research examines how the country’s increasing reliance on land to finance growth can favour property investment over the housing needs of new urban families.