Abstract
This study examines the relationship between the access to homebuyer credits and housing satisfaction among those buying affordable apartments, using a sample of 1,000 respondents from our own survey in 2016 in Hanoi, Da Nang and Ho Chi Minh Cities. Our regression analysis reveals the education level, the size and value of apartments are closely linked with the access to preferential homebuyer credits. Notably, we find that the access to preferential home loans has a strongly positive impact on housing satisfaction, after controlling for all other factors in the model. Thus, the finding confirms that preferential home loan programs play an important role in helping low-income households own affordable apartments and increase their housing satisfation. We also find that some other features of their apartments, such as the number of bathrooms and balconies, the distance from the apartment building to schools, bus stations and markets, are strongly linked with housing satisfaction.
Highlights
Rapid urbanization and population growth have created a high demand of housing units in Vietnam’s big cities
The proportion of low- and middle-income households seems to be higher among those living in SAs, while the number of high-income households is higher for those residing in commercial apartments (CCAs)
With respect to the provincial level factors that affect the acess to homebuyer credits, the results show households living in Da Nang had a lower likelihood of borrowing preferential home loans than those living in Ho Chi Minh cities (HCMC)
Summary
Rapid urbanization and population growth have created a high demand of housing units in Vietnam’s big cities. The housing shortage would continue to rise as the number of urban households are projected to increase to 10.1 million in 2020 (from 8.3 million in 2015) and the proportion of urban population is estimated to reach 50 % by 2040. This shows that about 374,000 additional units are needed in cities annually (WB, 2015). Affordable apartments have been in huge demand in urban Vietnam (WB, 2015)
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