Why do Vietnamese people prefer buying land to purchasing an apartment?

appartments

Many Vietnamese people accept borrowing or staying in rented houses until they have accumulated enough money to buy a townhouse, although that amount can be enough to buy an apartment. Adequate security, great prices, and enough internal and external facilities, but what makes people prefer housing over flats?

The house is one’s own, the apartment is shared. Because it serves the purpose of survival, Vietnamese culture in the past is also associated with thinking; lifestyle is a prerequisite for economic development.

The habit of living on our land is ours; living on other people’s land (apartment building) has no permanent value, which makes many Vietnamese prefer residing in real estate over apartments. Especially families with elderly people often do not like to live in apartments because of the lack of private space, fear of arising problems when “sharing.”

Also, real estate makes people feel more secure because of the feeling of 100% ownership. From the house area to the City Garden For Rent (if any) are owned separately, managed by themselves, and decided with full authority. The owner can build, repair, or design the interior according to their discretion without consulting or obtaining approval from the local authority or the investor (except in some areas with regulations on height. works or villas, townhouses in the project).

On the contrary, the word “common” in the apartment building denotes “co-ownership” that many Vietnamese people fear. The apartment is living in a collective, so the apartment owner must comply with the general law of the management board, residential community. For example, do not use coal stoves, do not gather guests too late to cause noise, consult the investor if you want to change the design or upgrade the apartment.

Buying a house is “a hundred years’ story.”

The psychology of having to buy a house for their children and home as an inheritance is still deeply ingrained in many Vietnamese parents’ thoughts. Therefore, many people find it challenging to accumulate a lifetime to buy an apartment, although long-term ownership will depend on local policies when the building expires. Not to mention some apartments only have ownership rights for 50 years, 70 years. After degradation, people still have to pay money for repairing and renovation, but they are not as active as real estate because this is the group’s work.

In buying a house to calculate a long-term story, later to leave it to the children and grandchildren, the choice of purchasing a home and land is even more convincing. Because the transfer of real estate instead of apartments will avoid complicated and cumbersome procedures, the property value will be kept stable or increased in the future, not worrying about devaluation.

“An inch of land.”

Since ancient times, as an agricultural country, “a golden inch” has become a common concept of many generations of Vietnamese people. Many people even measure the enemy’s wealth based on the number of land plots they own. “Buying gold makes a loss, buying earth makes a profit,” most Vietnamese people believe that pouring money into real estate always brings safety because people will increase more. Still, the land can not generate more, so it will be more valuable.

Witnessing many random people from empty hands to billionaires after one night thanks to land price increases (due to new rural planning, urban embellishment) also makes this mentality more and more ingrained. Although many people have enough money to buy an apartment, they still accumulate and even borrow “flooded” debt to buy a house.

On the other hand, although significantly developing, the condominium market in Vietnam still has certain limitations. Common – private ownership disputes, disagreements about managing and providing services, make many people feel insecure. So, they choose to save money to buy a home or stay in a rental house until they have enough accumulation.

Vietnamese people’s tendency to prefer Estella Heights apartment for rent over apartments is influenced by old psychology and conception. However, many Vietnamese people, especially the young generation, have changed their thinking and the real estate market also shows that the type of apartment is becoming more and more attractive.

According to online data from D’Edge Thao Dien apartment for rent , in Ho Chi Minh City, after only one year from 2018 to 2019, the price of the apartment segment has increased by an average of 14%. The cost of grade B apartments in 2019 has reached the threshold of 38 million VND / m2; affordable apartments (grade C) also have an average price of up to 28 million VND / m2. Thus, even for people with an income of several tens of millions of dong/month, it is not easy to own an apartment.

Accordingly, the choice of buying an apartment or real estate does not merely depend on conception and psychology but also has to consider financial capacity, demand for use, as well as the purpose of buying real estate ( for residential, rental, or investment) of each individual/family.

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