How does Vietnam's real estate price increase compared to the world?

At the Vietnam Real Estate 2024 conference held on the morning of December 3, Mr. Nguyen Quoc Anh - Deputy General Director of PropertyGuru Vietnam - commented that Vietnam's real estate prices are growing rapidly compared to the world .

The expert cited data from Global Property Guide showing that Vietnam’s real estate prices have increased more than many developed countries in the world. Accordingly, Vietnam’s real estate price growth over the past 5 years reached 59%, higher than the US (54%), Australia (49%), Japan (41%), Singapore (37%)…

Rapidly increasing prices have caused real estate rental yields in Vietnam to be only 4%, while many other countries such as the Philippines, Malaysia, Thailand, Indonesia, the UK, Australia, the US... have real estate rental yields ranging from 5% - 7%.

However, according to Mr. Quoc Anh, although real estate prices are increasing rapidly, Vietnam is still among the countries with the highest real estate ownership rate in the world at 90%, higher than some countries in the Southeast Asian region such as Singapore (88%), Indonesia (84%) and higher than the US (66%), Australia (66%)...

Figures from Global Property Guide show that real estate prices in Vietnam have increased more than many developed countries in the world. (Illustration: Minh Duc)

Meanwhile, according to a survey by PropertyGuru Vietnam, based on data comparing average salaries with house prices in the past and present, it can be seen that young people today still face many difficulties in buying a house.

Accordingly, in 2004, with an average GDP per capita of about 1.8 million VND/month, a young person of the 7X generation spent about 31.3 years working and saving to have enough money to buy a 60m2 apartment, selling price about 600 million VND/apartment, with a mobilization interest rate of 7.4%/year.

10 years later (2014), with an average GDP per capita of about 5.5 million VND/person, a young person of generation 8X needs to work and save for 22.7 years to have enough money to buy a 60m2 apartment, selling price of about 1.5 billion VND/apartment, interest rate of about 6%/year.

And by 2024, with an average GDP per capita of about 9.5 million VND/month, a young person born in the 90s needs to work and save for 25.8 years to buy an apartment of about 60 square meters, priced at about 3 billion VND, under the condition of a mobilization interest rate of 4.5%.

From the above comparison, Mr. Nguyen Quoc Anh believes that young people of all generations still need to make a long effort to be able to own a house.

Chau Anh

Source: https://vtcnews.vn/gia-bat-dong-san-viet-nam-tang-the-nao-so-voi-the-gioi-ar911194.html