Gen Z needs about 30 years to be able to buy a house

The housing and apartment segment in Hanoi and Ho Chi Minh City continues to be vibrant, due to increasing demand but limited supply.

The housing and apartment segment is still the focus of the real estate market.

The housing and apartment segment in Hanoi and Ho Chi Minh City continues to be vibrant, due to increasing demand but limited supply.

Housing demand remains high

On October 24, sharing at the Workshop: "Southern real estate overcomes challenges and seizes opportunities" , Mr. Vo Huynh Tuan Kiet, Director of CBRE Vietnam's housing marketing department, said that compared to personal investment channels such as gold, foreign currency... real estate is still the channel that many investors are interested in.

According to Mr. Kiet, the current market is still most vibrant in the housing segment, specifically apartments. However, there are clear differences in the two major cities of Hanoi and Ho Chi Minh City. Specifically, in the third quarter of 2024, the supply of new apartments in Hanoi was 8,227 units, while in Ho Chi Minh City there were only about 127 units. This is considered the quarter with the lowest supply in Ho Chi Minh City, down 96% year-on-year.

Mr. Vo Huynh Tuan Kiet, Director of Housing Marketing Department, CBRE Vietnam shared at the event.

In terms of purchasing power, there is a surprise. This expert said that the number of successful sales in Ho Chi Minh City reached nearly 2,000 units. The reason for the difference in number with supply is because many investors are looking to buy products in old projects that were introduced to the market before.

“This shows that the demand for buying houses in Ho Chi Minh City still has a certain attraction. As for Hanoi, the absorption rate is almost equal to the new supply, which shows that the real estate market in Hanoi is bustling,” said Mr. Kiet.

Commenting on the market trend in the coming time, Mr. Vo Huynh Tuan Kiet said that from the perspective of individual investors, when the market recovers with a legal corridor, investors will have easier access to real estate. At the same time, investors also have many options for products with real potential.

Currently, many investors are selling products with very good interest rate support policies. This helps many people access financial packages more easily, investors will be interested and take advantage of this. However, investors also prioritize choosing projects with clear legal status, ensuring safety. In particular, buyers will be more cautious with the market's rapid price increase trend.

For businesses, the legal issues of many projects will soon be resolved. This is a signal that in the coming time, more projects will be cleared of legal obstacles. Accordingly, the market will have more projects that meet real housing needs, because this is a factor that creates balance for the market.

In addition, domestic investors will also prioritize cooperation with foreign investors, investment funds, etc. and focus on good legal product sources.

House prices unlikely to fall in the future

One issue that has attracted much attention from investors and experts is related to real estate prices. In particular, recently, the Ho Chi Minh City People's Committee has issued a new land price list with an increase many times compared to the old land price list. In addition, the Ministry of Construction is also researching and proposing a tax policy for cases of owning and using many houses and lands to limit speculation and buying and selling in a short period of time to make a profit.

In the discussion, experts all said that real estate prices will hardly decrease in the future.

Sharing his personal opinion on this issue, Mr. Su Ngoc Khuong, Senior Director of Savills Vietnam Investment Consulting Department, said that Ho Chi Minh City's issuance of a new land price list shows its focus on solving outstanding difficulties, especially issues related to land use fees for large and key projects.

Because the local government wants to ease the difficulties for domestic and foreign businesses and real estate developers. Besides, it is also to increase revenue for the city budget to promote investment.

“I think this action by the leaders of Ho Chi Minh City is positive and quite bold. The purpose is to resolve projects that have been pending for many years and that businesses have not been able to handle. From the perspective of foreign investors, this also demonstrates the autonomy and determination of the City People's Committee in resolving difficulties related to land use fees. When the problems are resolved, the supply in the market will also improve,” said Mr. Khuong, adding that according to the law of supply and demand, when input costs increase, output products will also increase.

Regarding the proposed tax policy for the case of owning and using many houses and lands. The expert from Savills said that in business, everyone wants to create products to sell to customers, but from the perspective of state management, the interests of the country must be ensured, especially taxes. Therefore, if this proposal is applied, to some extent, the output products will push the price level higher. However, the important thing now is that the market supply is facing difficulties.

“It will be difficult for young people today to access buying a house. Especially the generation born in 2000 (Gen Z), at the present time, after graduating from university and starting a job, it takes 30 years to be able to buy a house, for those who are really good, it will also take somewhere around 20 years,” said Mr. Khuong.

Speaking to reporters on the sidelines of the event, Mr. Nguyen Van T., Deputy General Director of a company headquartered in District 12 (HCMC) said that the issuance of a new land price list by HCMC will have a certain impact on the market in general and businesses in particular.

Specifically, investors and businesses are concerned about whether the authorities will allow tax debt when converting land use purposes. Because in the past, tax debt was not allowed when converting, but now, in cases where there are no conditions to fulfill financial obligations on land, the Land Law allows land users to record land use fees in debt, and only when transferring land use rights and generating income must they pay. So, will tax revenue be reduced or not?

Then about selling price, certainly in the near future real estate selling price will increase, not control price. Because according to market mechanism, there is no reason when input cost increases but output price decreases or remains the same.

Source: https://baodautu.vn/batdongsan/phan-khuc-nha-o-can-ho-chung-cu-van-la-tam-diem-cua-thi-truong-bat-dong-san-d228231.html