Vietnam Is In Top 3 Countries With The Highest Home Ownership Rate
Garrett Real Estate Group based in Kentucky (USA) has released a list of countries with the highest rate of homeownership in the world. According to this list, among the top 10 countries, Vietnam ranks 3rd.
Homeownership comes with a sense of pride and accomplishment while also providing stability for many across the world.
|Vietnam is among the top countries with the highest homeownership in the world. Photo: Congthuong
Romania tops the list with the highest homeownership rate globally, with over 96% of households owning their home. This results from a mix of tradition, great opportunities, and housing affordability, according to Garrett Real Estate Group.
In 1990, following the communist era, 70% of apartment blocks were state-owned. When the government sold these properties, many Romanians quickly purchased their homes, often at a favorable price. Despite the highest homeownership rate globally, reports show that a third of these homes may be in disrepair.
Homeownership in China is among the highest in the world, with rates exceeding 90%. Whether it be a high-rise apartment or a Siheyuan, homeownership in China signifies stability and wealth.
The housing boom since the late 90s has also introduced a large number of real estate investors. As a result, with soaring prices, especially in cities, affordability is becoming an issue for many. Despite these challenges, homeownership remains a key aspiration for residents in China.
Owning a home in Vietnam is seen as a status symbol and an important goal, particularly for those reaching retirement age. The government also supports homeownership through affordable housing programs and relaxed restrictions for some.
However, like many other countries, the rapid growth over the years and increase in prices have created challenges with affordability and quality of housing. Despite this, homeownership remains a significant goal, from owning a tube house in the city to owning a stilt home in the countryside.
A report by Batdongsan.com.vn showed that Vietnam has the highest percentage of people planning to buy a house in Southeast Asia.
Up to 92% of more than 1,000 respondents said they planned to buy a house, and over half of them wanted to buy a house within the next two years, mainly those aged 40 and over.
Ms. Sushmita Mohapatra, Content Director of PropertyGuru, said this is the highest rate in Southeast Asia, compared to 70% in other markets such as Thailand, Indonesia, Malaysia, and Singapore. The difference is that Vietnamese people mainly buy real estate for living and for their children, while Thais buy for retirement, and people in other countries often buy for investment.
In terms of location, Ho Chi Minh City and Hanoi account for nearly 80% of the demand for housing as the majority of consumers intend to buy a house in the same residential area due to travel restrictions during the pandemic, cited VietnamNet.
Another finding is that more than 75% of property owners want to purchase another property while keeping the existing one. A survey by Batdongsan.com.vn shows that nearly 80% of Vietnamese own at least one property. These are people who are 40 years old or older, married, and have an income of 20 million VND/month. Most people with a monthly income of 70 million VND or more own at least 2-3 properties.
According to the survey, up to 86% of respondents said the domestic real estate market price was high or very high, while home loan interest rates are also high. However, many people still planned to buy real estate because they were optimistic about the return on real estate and expected the price to increase in the next five years.
It is forecast that investment will still be poured into the Vietnamese real estate market in the coming time.
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