According to the Vietnam Real Estate Market Evaluation Research Institute (VARS IRE), for the younger generation, the journey to find a place to settle down often goes through many different stages. In the early years of their career, when income is not stable, the demand for mobility is high and financial resources are limited, renting a house is a suitable choice to help optimize costs, maintain flexibility and create conditions for initial resource accumulation.
In the long term, a home purchase plan not only depends on the ability to save but is also affected by the fluctuation rate of the target asset.
Research data from VARS compiled from a report by the Statistics Office shows that in the past 10 years, inflation in Vietnam has maintained an average of about 3%/year. Meanwhile, the average 12-month term deposit interest rate fluctuates around 5.5-6.5%/year, helping the deposit source still have the potential to grow.
However, if placed in relation to house prices, the gap becomes clearer. Real estate prices in some major cities recorded compound growth of about 12%/year in the same period.
This means that an accumulated amount can still increase, but the growth rate may not keep up with the growth rate of the assets that buyers are aiming for.
Therefore, for those who already have a suitable financial foundation, choosing the time to own a house is also related to the opportunity cost factor. Early acquisition of a suitable asset can help turn a portion of housing costs into a future equity formation process.
VARS IRE believes that in the current context, family resources are becoming a significant factor supporting the access to housing for many young people. In large cities, parents supporting a portion of initial capital for their children to build houses is increasingly common. This support can help young people shorten accumulation time, reduce loan pressure and expand their ability to choose products that better suit their actual needs.
Besides family resources, the market is also seeing many solutions to support kindergarten buyers, such as extended payment policies, dividing cash flow according to progress, preferential interest rates, credit loan packages specifically for young people in the early stages or financial cooperation programs between investors and banks. These solutions contribute to reducing initial capital pressure and creating more opportunities to access housing for groups of customers with stable incomes.
However, the ability to own a sustainable home still depends on many factors, the most important of which is the ability to maintain cash flow, appropriate loan levels and the quality of the chosen assets. Having more supporting resources helps shorten the access process, but does not completely replace the long-term financial balance problem.
Early home ownership can bring certain advantages in terms of time in the process of accumulating assets. A sustainably developed housing market needs to address both needs: renting houses in the early stages to optimize resources and owning houses when financial conditions are suitable. When income is stable, housing needs are clear and financial capacity meets, home ownership can become an important step in the process of building long-term assets.
