Real Estate

What Does Gen Z Prioritize When It Comes to Settling Down?

As Gen Z enters their prime years, aged 25-35, they emerge as both the backbone of the workforce and the most sought-after demographic in today’s real estate market. Amid soaring property prices, the decision to rent or buy becomes a delicate balance—weighing monthly affordability against long-term stability, flexibility versus the opportunity to own an asset, and risk against reward.

Administrator

2 October, 2025

Youthful Trend in Homebuyers

According to VARS, from 2019 to present, the proportion of real estate transactions from the 25-35 age group has surpassed 40% of total transactions, even reaching up to 70% in some projects. Despite financial pressures, Gen Z is finding ways to enter the apartment market. Unlike their parents’ generation, who preferred long-term savings for land or townhouses, today’s youth prioritize suburban apartments with good connectivity, comprehensive amenities, and prices that fit their budgets.

DKRA Consulting’s August 2025 report also highlights that the 25-34 age group is the primary homebuying demographic, while older groups tend to invest. According to DKRA experts, young buyers seek affordable apartments with reasonable sizes, integrated amenities, and are open to living in satellite cities. Binh Duong and Dong Nai have thus become focal points, accounting for nearly 50% of apartment supply and consumption in the Greater Ho Chi Minh City area in the first 8 months of 2025, benefiting directly from infrastructure like Ring Road 3, the Bien Hoa – Vung Tau Expressway, and metro lines.

Structure of Investment Buyers

Structure of Homebuyers

Dominant Homebuying Trends

(Source: DKRA Consulting)

Trade-offs of Renting

The rental market maintains steady interest. Batdongsan.com.vn’s August report notes a slight increase in demand for dorms and serviced apartments during the back-to-school season. In Q2/2025, NhaTot recorded popular search ranges of 5-7 million VND and 7-10 million VND per month. A 2-bedroom apartment at 8-9 million VND per month remains affordable for many young people.

However, after 5 years, this rental amount could reach half a billion VND without leaving any assets. Meanwhile, using a similar amount for installments, many projects now offer flexible financial plans, allowing monthly payments equivalent to rental costs but resulting in ownership. Nevertheless, installment plans also carry risks. Inexperienced young buyers may fall into floating interest rate traps after promotional periods, leading to increased financial pressure. Dr. Vu Dinh Anh warns that choosing projects without legal guarantees while leveraging loans can burden buyers with lifelong debt. Therefore, legal due diligence, actual progress, and developer reputation are essential before deciding.

Flexible Policies from New Projects

Dr. Can Van Luc notes that the demand for affordable housing is significant, but supply is severely lacking, while high-end segments dominate, making it difficult for young people to access properties under 50 million VND/m². HoREA Chairman Le Hoang Chau has repeatedly warned of the supply-demand mismatch in Ho Chi Minh City, where mid-range segments nearly disappeared in 2024, and affordable apartments have been absent since 2020. He emphasizes that without developing affordable products, middle-income groups and young people will increasingly struggle to find housing.

To address this, many developers offer flexible payment policies. In Binh Duong, The Emerald Golf View prices range from 37-45 million VND/m², with 1-bedroom units from 1.8-2.2 billion VND and 2-bedroom units from 2.2-2.8 billion VND. The project allows extended payments over 3-5 years, divided into small installments, and supports 0% interest for the first 18-24 months. Astral City also implements extended payment plans and loan support, reducing initial cash flow pressure.

In Dong Nai, Nam Long Group’s Izumi City prices range from 38-45 million VND/m². With the Easy Pay – Easy Invest program, loan terms extend up to 40 years, with fixed interest rates and a 5-year grace period on principal payments. In western Ho Chi Minh City, Akari City offers 2-bedroom units from 2.7 billion VND. Buyers only need to pay about 30% in the first 18 months, with the remainder supported by bank interest and grace periods. The project is located on Vo Van Kiet Avenue with integrated amenities, suitable for young homebuyers.

In eastern Ho Chi Minh City, TT AVIO – Orion Tower stands out with prices starting from 33.6 million VND/m². Payment policies are personalized based on individual financial capabilities, ideal for young buyers: only 20% is required in the first 6 months, followed by 10% upon signing the sales contract, with the remainder paid in installments from 9 million VND/month until handover, without bank loans. Alternatively, buyers can pay 20% until handover, with the remainder financed at 0% interest and a 30-month grace period on principal. The payment policy’s advantage is providing buyers with easier homeownership opportunities, flexible payments, and even discounts or preferential interest rates for overpayments.

Primary apartment prices in Ho Chi Minh City currently range from 46-70 million VND/m², while Binh Duong and Dong Nai still offer projects under 40 million VND/m². This explains why Gen Z is turning to satellite cities, where prices are more reasonable and infrastructure is rapidly developing.

The decision to buy or rent is not just a simple financial calculation but a strategic choice. For young professionals, renting remains a sensible option to maintain flexibility. However, for those with stable incomes, if they can find transparent projects with flexible policies and costs not exceeding 30-40% of their income, early homeownership is a worthwhile consideration.

Gen Z is reshaping Vietnam’s real estate market. They are younger, more practical, and discerning when choosing homes. They are willing to move further to find suitable apartments and accept payments equivalent to rental costs to become homeowners. With support from innovative financial policies and supply from satellite cities, their journey to homeownership, though challenging, is becoming more feasible than ever.

Thu Minh

– 07:22 01/10/2025