First-time homebuyers getting younger

By Nguyen Tieu   December 26, 2023 | 03:25 pm PT
First-time homebuyers getting younger
Residential buildings in eastern Ho Chi Minh City. Photo by VnExpress/Quynh Tran
The majority of people who bought homes in 2023 were 27-40 years old, compared to 42-55 two years ago, a survey has found.

The 27-30 age group accounted for 42% of home buyers this year, up from 39% in 2021, according to the survey of 2,000 respondents by Property Guru, operator of popular real estate listing website Batdongsan.

In the same period, the 42+ age group dropped from 22% to 15%.

The year was also defined by rising inquiry and demand for homebuying among Gen Z-ers aged between 22 and 26.

The demographic accounted for 13% of property inquiries in 2021, but the figure rose to 19% last year before dropping slightly to 18.7% this year amid economic challenges.

Le Bao Long, a strategic director of Batdongsan, said that 60% of people under 30 years of age who bought homes this year said they were financially capable of owning at least one property.

Of those aged 30+, over 35% had to borrow between 30% and 70% of the cost of home, he added.

Long said that the survey showed that young Vietnamese were willing to move to more distant localities and accept longer commutes order to own homes.

"In big cities like Ho Chi Minh City and Hanoi, 43% of young homebuyers enjoyed a change in their living environment," he said, adding that they also had higher standards in terms of green space and "modern features."

Another report by property consultancy Savills Vietnam said that HCMC and its neighboring cities are becoming destinations for many highly qualified workers from across the country.

Young people account for around 55% of HCMC’s 10-million population, and among them 30% own or are seeking to buy homes, it said.

Giang Huynh, deputy director of market research at Savills HCMC, said that 25-35 years old is the ideal age range to buy homes.

People in this group are not afraid to borrow to make purchases, and they are also careful in making any credit decisions.

They often look for apartments between 50 and 70 square meters in the suburbs.

Without any financial support from their family, a young person needs to have an income of between VND30-45 million ($1,232-1,849) a month to buy a home in HCMC, Giang said.

However, the figure drops to around 20-30 million for homes in satellite cities, which are affordable for many young people, she added.

Vietnam's GDP is forecast to rank third in the ASEAN-6 bloc in the 2025-2027 period, according to the International Monetary Fund.

GDP per capita is set to reach $4,682 this year, ranking sixth out of 10 countries in ASEAN. By 2024 it is forecast to reach $5,000.

Vietnam’s workforce is young with most people in the 22-35 age group.

Ngo Dinh Duc, vice chairman of the Association of Independent Members of the Board of Directors of Vietnamese Enterprises, said that the current generation of young workers has learned to take advantage of the rapid development of technology and innovation to seize job opportunities and increase their income.

Young people in Vietnam have the ability to accept rapid changes, they are also familiar with artificial intelligence and blockchain, as well as with content creation and conducting business on social media.

They can therefore on average earn higher salaries more quickly than their predecessors.

But young people may encounter many difficulties in real estate transactions due to lack of market knowledge and poor understanding of government mechanisms involved in the market.

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