The Y-generation, or those aged 20-30, are important clients as they account for 35 percent of the country’s total population. However, only a modest proportion of the clients own housing.
This is also a burning problem in other countries. In Australia, the number of people owning houses at the ages of 25-34 fell from 58 percent in 1986 to 45 percent.
In Vietnam, the census conducted in 2014 showed that 90.8 percent of Vietnamese own housing.
However, according to Duong Duc Hien from Savills Hanoi, the majority of the 90.8 percent inherited properties or received financial support from parents. Without the support, the number of people owning houses at the age of below 35 would be a challenge.
Analysts noted that there is a growing tendency of young Vietnamese to have separate homes even when they are not married.
Many in the Y-generation have to delay their plans to get married or have children.
The real estate market has recovered strongly since 2014, helping ease the thirst for housing. However, problems have arisen: realtors have focused on developing high-end products which are affordable to only well-off families.
The new policy on allowing foreigners to own houses for 50 years has stimulated the real estate market as the presence of foreign buyers has increased demand.
Hien pointed out there is a big gap between young people’s income and the house prices in large cities. A mid-end apartment in Hanoi is priced at VND32-45 million per square meter, which is nearly equal to that in developed markets, while the Vietnamese income is much lower.
To buy houses, young people will have to borrow money. However, if they do this now, when the lending interest rates are sky high, the interest will be a burden.
Some developers have realized the demand from young people and have begun developing apartments affordable for young people. Vingroup, for example, which previously focused on high-end products, is planning to launch Vincity apartments, priced at VND700 million for each.
In addition, Nam Long has joined forces with Japanese investors to develop apartments in the suburbs.
While Gen X are the people born in 1970-1985, Gen Y were born in 1980-2000. This group now receives special attention because it is the key generation in the global force, accounting for 32 percent of the world’s population and 35 percent of Vietnamese.
By Thanh Lich
Source: VietNamNet
