Mr. Nguyen Quoc Anh - Deputy General Director of PropertyGuru Vietnam said that in the past year, the keyword "young people buying houses" was one of the hottest and most interested keywords in the real estate market.
Mr. Quoc Anh commented that young Vietnamese people in any era find it difficult to buy a house. The expert compared the average salary and house prices of the past and present. It can be seen that not only Gen Z today but also young Vietnamese people, regardless of era, face many difficulties in buying a house.
In 2004, it took an individual of the 7x generation about 31.3 years of income to buy an apartment (60m2) worth 0.6 billion VND, under the condition that the mobilization interest rate was 7.4%. After 10 years, the number of years of income for an individual of the 8x generation to buy the above apartment was 22.7 years. The apartment price has increased to 1.5 billion VND while the mobilization interest rate has decreased to 6%.
By 2024, a 9x individual will need 25.8 years of income to buy the above apartment (priced at 3 billion VND) under the condition of a mobilized interest rate of 4.5%. Although the number of years of income and interest rates have decreased over time, in general, young people of all generations still need to make efforts for a long time to be able to own a house.
Mr. Quoc Anh commented that the high real estate prices have greatly affected people's desire to own a house. Real estate prices in Vietnam are growing rapidly compared to the world.
In 5 years (2019 - 2024), Vietnam's house price growth reached 59%, higher than many other countries such as the US (54%), Australia (49%), Japan (41%) and Singapore (37%).
In the real estate market, real estate prices are one of the hottest stories in the market recently. According to a survey by Lao Dong Newspaper reporters, apartments and commercial houses for sale at prices below 35 million VND/m2 are no longer available, and the market no longer has primary products in this segment.
The average price of primary products in Hanoi is currently quite high, ranging from 60-120 million VND/m2. Some high-end apartment projects in the suburbs of Hanoi are even being offered for sale at hundreds of millions of VND/m2. In the inner city districts of Hanoi, the market has recorded some projects being opened for sale with the highest price of up to nearly 300 million VND/m2.
Similarly, villa prices are also continuously breaking the peak. Many villa, townhouse, and townhouse projects have high selling prices, up to 750 - 850 million VND/m2 such as Starlake Urban Area (Tay Ho, Hanoi). Some villa and low-rise projects such as Diplomatic Urban Area in Xuan Dinh (Bac Tu Liem District, Hanoi), or Him Lam Van Phuc Urban Area in Ha Dong District, many villas are also being offered for sale at prices of 400 - 500 million VND/m2. Even some villas in Vinhomes Green Bay Me Tri Urban Area (Nam Tu Liem, Hanoi) have selling prices of up to 1 billion - 1.4 billion VND/m2.
Regarding the land segment, according to data from PropertyGuru Vietnam, compared to the first quarter of 2023, land prices in the third quarter of 2024 in Dong Anh district increased from 41 million VND/m2 to 63 million VND/m2 (up 53%), land prices in Hoai Duc district increased on average from 55 million VND/m2 to 100 million VND/m2 (up 81%), the strongest increase was in Thanh Oai district, from 21 million VND/m2 to 40 million VND/m2 (up 90%).
