How Vietnam’s young buyers navigate a housing market amid widening income-home price gap

The study, conducted by Batdongsan.com.vn and involving more than 1,000 respondents, found that the price-to-income ratio for housing in Hanoi and Ho Chi Minh City ranks among the highest globally, at roughly 11.5 times the average income.

Survey results identified four distinct groups of young property consumers:

- Aspiring homeowners: Many are married with children and aim to purchase property within five years. 

Around 29 percent supplement income with additional work, 26 percent save aggressively, and 23 percent invest in gold, often taking loans covering 30 percent to 50 percent of the property value. 

Condominiums remain the preferred choice for first-time buyers.

- Long-term renters: Typically younger and single, this group chooses to rent to maintain flexibility, avoid long-term debt, and prioritize location and amenities. 

Most spend less than 30 percent of monthly income on rent and dedicate savings to travel or education rather than property.

- Self-funded buyers: Usually over 35, these buyers rely on personal savings and family support. 

Half purchase without bank loans, while others borrow, allocating 20 percent to 40 percent of household income for repayments. 

Many plan additional property purchases in the next five years.

- Inherited property owners: Already possessing property through family inheritance, most still plan to acquire additional real estate, focusing on houses, land plots, or condominiums.

Experts at the summit highlighted that while young Vietnamese remain ambitious about homeownership, rising prices and low incomes are significant barriers. 

The report also noted growing interest in social housing, particularly in Hanoi, though 70 percent of respondents cited bureaucratic hurdles and eligibility requirements as obstacles.