Sharing at the Vietnam Real Estate Summit (VRES) 2024 organized by PropertyGuru Vietnam on the morning of December 3, Mr. Nguyen Quoc Anh - Deputy General Director of PropertyGuru Vietnam commented that Vietnam's real estate prices are growing rapidly compared to the world.
The expert cited data from Global Property Guide showing that Vietnam’s real estate prices have increased faster than many developed countries in the world. Accordingly, Vietnam’s 5-year price growth reached 59%, higher than many other countries such as the US (54%), Australia (49%), Japan (41%), Singapore (37%)…
The high price level has caused the real estate rental yield in Vietnam to be only 4%, while many other countries such as the Philippines, Malaysia, Thailand, Indonesia, the UK, Australia, and the US have real estate rental yields ranging from 5% to 7%.
Analyzing the factors affecting real estate prices, Mr. Quoc Anh said that economy, management and society are the three main factors affecting real estate prices: "Vietnam is a country with a high per capita economic growth rate and strong inflation. At the same time, the interest rate environment and investment efficiency of domestic channels all strengthen consumers' demand for real estate."
Vietnam's GDP per capita is currently at 34.8%, higher than the world average (20.8%) and developing countries (22%). On the other hand, inflation in Vietnam is also higher than the average of other countries. Currently, the interest rate environment in Vietnam is gradually returning to a more favorable level and the proportion of accumulated assets in Vietnam's GDP is quite high (32.8%), ranking 27th in the world (average 27.1%).
With their savings, Vietnamese people have several main investment channels such as financial markets, real estate, gold, foreign currency and savings.
In particular, real estate is the investment channel with the best yield in Vietnam in the past 10 years with the profit margin of apartments reaching 197% and land reaching 137% in the fourth quarter of 2024 compared to the first quarter of 2015. While gold investment is volatile, risky and has a large difference between domestic and world gold prices; foreign currency and savings deposits have quite low yields, around 9 - 13%/2 years.
Vietnam’s population and urbanization rate present many opportunities for real estate demand growth. The trend of smaller families also drives demand for property for the next generation to inherit and the journey of home ownership for young people.
In addition, culturally, Vietnamese people have a strong desire to own real estate in their lifetime for common reasons including high and stable yields, underdeveloped financial markets, social recognition, and property - a place to live for the family.
Therefore, Vietnam is among the countries with the highest real estate ownership rate in the world at 90%, higher than some countries in Southeast Asia such as Singapore (88%), Indonesia (84%) and higher than the US (66%), Australia (66%)...
