There is a growing trend among young people in Hanoi and Ho Chi Minh City to opt for apartments instead of traditional houses. This shift in preference reflects evolving lifestyle needs; an apartment is no longer merely a place to rest at night but a space that caters to all aspects of daily life, including amenities, environment, community, and accompanying infrastructure services.
As shared by Mr. To Anh Hung, Director of REFI and financial advisor to the Vietnam Financial Advisors Association (VWA), this change in lifestyle demands has led to a surge in young people’s demand for apartments. Consequently, the prices of apartments in well-planned urban areas with ample amenities have been rising faster than those in areas with fewer facilities. Even among similar apartments, those located in integrated townships consistently show stronger price appreciation, as evident in today’s real estate market.
 Mr. To Anh Hung shared his insights at the talk show “Mua nhà trả góp bằng lương,” organized by Tuổi trẻ newspaper on August 22, 2025, in Ho Chi Minh City.
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Citing a report by the Ministry of Construction, Mr. Hung revealed that in 2024, apartment prices in Hanoi witnessed significant increases of up to 30-40%. In contrast, Ho Chi Minh City recorded slower growth. This disparity has prompted many, especially young people, to question whether the rapid price escalation reflects the true value of real estate and if it is still a good time to buy.
To answer these questions, Mr. Hung suggested considering several factors. Firstly, the location of the property is crucial. Secondly, the quality of the construction and its ability to meet practical needs should be evaluated. Currently, many projects are marketed as “luxury” or “high-end,” but they may not live up to these claims in reality.
Since 2016, the Ministry of Construction has issued Circular No. 31/2016/TT-BXD, providing clear criteria for classifying apartment buildings. The circular categorizes projects into A, B, and C classes based on various factors, including construction standards, management and operation, and proximity to amenities. However, many developers do not disclose this classification. This is because, based on objective criteria, some projects may only qualify as Class C but are sold at Class A prices. For instance, in Hanoi, several townships promoted as high-end have limited parking spaces, failing to meet the expectations of their high price tags.
Therefore, to assess the true value, buyers can refer to the classification criteria set out in Circular 31. Determining the class of an apartment will help buyers decide if the asking price aligns with their hard-earned money’s worth.
What Does Rental Yield Tell Us About Property Value?
Another critical factor to consider is rental yield. According to Mr. Hung, this is one of the most commonly used valuation methods globally. Unlike relying solely on average selling prices, this approach uses rental yields to determine a property’s appropriate value.
In Hanoi, after a year of significant price increases in 2024, rental yields for apartments have dropped from over 4% to just over 3%. Meanwhile, Ho Chi Minh City has maintained a rental yield of around 4%. Over the past decade, this yield level has been considered reasonable. With stable rental yields, buyers can more accurately determine a property’s true value, as real estate is ultimately an asset capable of generating cash flow.
Additionally, the current credit policies are favorable for young people looking to buy their first homes. Banks have introduced exclusive loan packages for customers under 35, offering unprecedented benefits such as grace periods, extended repayment terms of up to 30, 35, or even 40 years, and waived prepayment penalties for early repayment of up to VND 100-200 million within the first month. These incentives present an excellent opportunity for young homebuyers.
With the current interest rate environment considered favorable compared to previous years, the path to homeownership is more accessible than ever. The key for young buyers is to identify real estate with intrinsic value. By doing so, they can achieve the milestone of owning their first home and subsequently aim for their second and third properties in the future.
– 16:37 22/08/2025
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