Young Buyers Fuel Surge in Real Estate Purchases

The Vietnam Association of Realtors (VARS) reports a significant increase in young adults entering the real estate market, particularly in the apartment segment, since 2019. Buyers aged 25-35 now account for over 40% of transactions on average, with some projects reaching up to 70%, surpassing previous generations.

A prior study by Batdongsan revealed a shift in the primary buyer demographic since 2023. Individuals aged 22 to 39 are becoming the dominant homebuyers, replacing those over 40. Notably, 66% of property demand comes from the 27-40 age group, while the 45-60 group has decreased to 34%. Approximately 66% of buyers under 35 are willing to take out loans to own at least one property.

A recent survey by One Mount Group highlights that the core buyers of condominium apartments are aged 35-44. Interestingly, the younger generation, aged 18-34, is gaining a significant share of home purchases, with a rate of over 27%. This trend underscores the growing youthfulness in homeownership demand.

According to VARS, the primary reason young people find it easier to own homes compared to previous generations is Vietnam’s golden demographic period, with over half of the workforce under 35, creating substantial housing demand. Additionally, many young adults achieve financial independence early by leveraging technology, e-commerce, digital content creation, and digital asset investments. Family support also plays a crucial role, significantly reducing the time needed to accumulate funds.

Furthermore, current credit policies and sales strategies from developers are far more flexible than before. Banks offer numerous loan packages tailored for young buyers, and companies provide staggered payment plans or favorable loan packages, making it easier for young customers to enter the market.

Prospective buyers explore a project in Ho Chi Minh City. Photo: PDG

Buying preferences also differ from previous generations. Instead of saving for extended periods to purchase land in central areas, many young buyers opt for reasonably priced apartments in suburban areas with good connectivity and modern amenities.

Mr. Tran Minh Tien, Director of One Mount Group’s Market Research Center, notes that the trend of younger buyers is becoming increasingly prominent. The desire for independence and early personal space is a key driver of homeownership demand. Over the past three years, property searches by those under 35 have surged, thanks to technology offering higher-income job opportunities compared to previous generations. This makes homeownership more attainable for Gen Y and Gen Z.

According to Mr. Tien, amidst a challenging real estate market, the 45-60 age group, traditionally major asset accumulators, has reduced transactions, giving way to younger buyers under 35. To achieve homeownership, many are willing to look beyond city centers, seeking affordable apartments in suburban areas of major cities, typically priced between VND 2-4 billion per unit.

However, VARS emphasizes that the proportion of young people successfully buying homes remains a small fraction of total demand. Most face barriers such as slow income growth, high debt pressure, and rising living costs. Data from the Vietnam Institute of Real Estate Research and Evaluation (VARS IRE) shows that over the past decade, apartment prices in major cities have surged far beyond average income growth. In Q2, average apartment prices in Hanoi increased by 88% since 2019 to VND 75 million per square meter; Da Nang rose nearly 70% to VND 66 million; and Ho Chi Minh City increased by over 48% to VND 77 million.

In contrast, income growth has been much slower. In Hanoi, average monthly income has risen from VND 4.1 million to VND 8.3 million over nearly a decade, a 6.4% annual increase. In 2014, a middle-income family needed nearly 18 years to save for a 70 sqm apartment priced at VND 1.75 billion. By mid-2025, with prices exceeding VND 5 billion for a similar apartment, the savings period extends to 27 years if allocating all income. This could stretch to 80 years if only one-third of income is allocated to housing, as internationally recommended.

While some young adults have become key players in the housing market, experts argue that most still struggle with financial constraints to realize their homeownership dreams. Many delay purchases or opt for long-term rentals to balance living expenses and avoid debt burdens. With limited initial savings, young buyers rely heavily on financial support from developers and banks.

VARS IRE suggests that without fundamental policy solutions, such as developing more social housing, affordable homes, and controlling price levels, homeownership will remain out of reach for most young people. Real estate remains an attractive investment for the new generation, but market realities require coordinated policy adjustments and buyer adaptability.