Amid falling interest rates, should young people prioritize saving or owning real estate?

In the context of Vietnam's economy entering a period of stability, interest rates gradually returning to low levels, many people are facing the question: Should we continue to deposit money in the bank or boldly borrow to buy the first apartment?

According to the State Bank, the current interest rate for home loans has decreased by 1-2 percentage points compared to the period 2022-2023, while many banks have also offered special incentive packages for primary apartment buyers. This makes the loan problem less stressful, opening up opportunities for those who want to own a home instead of continuing to pay rent.

Suppose that with a two-bedroom apartment in the West of Ho Chi Minh City priced at about 1.4 billion VND, the buyer only needs to pay about 20-30% of the value, the rest is supported by a long-term loan from the bank. A representative of Seaholdings, the developer of the Destino Centro apartment project, shared: "Compared to the current apartment rental cost in some areas ranging from 8-10 million VND/month, borrowing from the bank to buy a house does not actually create more pressure, but also helps young people have a stable place to live and accumulate assets in the long term."

Many young families and investors choose to own Cielo apartments (Photo: Seaholdings)

Compared to savings, the difference is even more obvious. Bank deposits are considered a safe haven, but the profits are quite modest, especially in the context of continuously decreasing interest rates. On the contrary, real estate still maintains its attractiveness thanks to its ability to increase in value.

A survey by batdongsan.com shows that the price level in the secondary market of apartments in the western part of Ho Chi Minh City has fluctuated significantly in recent times, increasing by 2-3 times. In addition, data from batdongsan.com in April 2025 also showed that the demand for apartments in Ho Chi Minh City increased by 25% in 3 months compared to the same period. In particular, the western part of the city recorded strong growth in the number of buyers and investors, thanks to the advantages of reasonable prices, developed traffic infrastructure and convenient connectivity to the center. It is expected that the room for price increase is still large when a series of Beltway infrastructure projects are being implemented.

One of the outstanding advantages of the West is the population size. This area is currently home to about 3 - 3.5 million people, accounting for nearly 40% of the population of Ho Chi Minh City. This number is higher than the East and South areas.

Many parents are looking to buy one for their young students in Ho Chi Minh City (Photo: Seaholdings)

Rental rates are exceeding the city average. Currently, the rental rate of apartments in the West area is averaging 3 - 4.2%/year, much higher than the East area which is 2.8 - 3.5%, which has been considered the "hot spot" of the market in recent years. The West area currently has many adjacent facilities such as supermarkets, shopping malls, universities, large hospitals, etc., creating a competitive advantage in attracting stable, long-term tenants, from students, young working people to young households.

Therefore, with the increase in housing prices, the trend of young people is also shifting from renting to stabilizing by borrowing from banks to own a house.

Experts also say that young people should not only look at short-term borrowing costs, but also consider how the value of the property will increase in the next 5-10 years. If real estate grows 10% per year, it will be enough to cover the initial interest in just a few years, while also providing dual benefits of housing and investment.

Another notable factor is the bank’s participation in appraisal of large projects. In its role as a capital provider, the bank only disburses to projects that fully comply with legal requirements, ensure progress and the investor’s capacity. This means that buyers are not only financially supported, but also indirectly “guaranteed” the safety of their investment.

A 2-bedroom apartment at Cielo costs around 1.4 - 1.8 billion VND (Photo: Seaholdings)

In the general picture, the Cielo apartment in Destino Centro stands out as a typical choice. With a price of under 2 billion VND for a two-bedroom apartment, a flexible initial payment policy, suitable for the financial capacity of many families and the companionship of the bank, the apartment offers a complete solution for both residential and investment needs.

The “three-party” combination – buyer, investor, bank – is becoming a safe and sustainable model in the current market. Seaholdings representative said that with the current applied policies, the total discount is up to 11%, Cielo apartment owners will further optimize cash flow.

It can be said that, in the period of cooling interest rates, buying a house is not only a cost issue but also a long-term financial strategy. If saving helps to secure capital, buying an apartment opens the door to accumulating assets, at the same time taking advantage of the real estate growth cycle. And for young people looking for a foothold for the future, Cielo is proof that "settling down" can start today./.

Source: https://baolongan.vn/giua-luc-lai-suat-giam-nguoi-tre-nen-uu-tien-gui-tieu-kiem-hay-so-huu-bat-dong-san-a202139.html