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The rich increase fast, how the trend of real estate consumption changes?

by Steve Ninh
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The boom of the middle class and the rich in Vietnam in recent years has also impacted the trend of real estate consumption.
The middle class and the rich increasing sharply.
The “Global Wealth – Prospects 2020” report published by Wealth-X shows that the number of rich people and their assets is increasing rapidly.
According to the Wealth-X report, the number of rich people with net asset value (total assets minus debt assets) from 5 million to 30 million USD increased the most, to 2.67 million in 2019 from level 2. , 39 million in 2018. This group of people in the past year increased by 10%, higher than the increase of only 1% in the previous year.A spokesperson for Wealth-X told CNBC the reason for the high increase was due to the increase in prices of most assets in 2019. For example, the US stock market in 2019 saw the S&P 500 increase by 28.9% – this is the largest one-year increase of this index since 2013. Or Nasdaq has increased by 35.2% and also the level. The highest increase in a year since the last 6 years and the Dow Jones industrial index increased by 22.3% in 2019.
According to the Wealth-X report, the US is home to the majority of people with a net worth of $ 5 million to $ 30 million with 969,075 individuals, an increase of 15.9% over the previous year. China is followed by the number of super-rich individuals with 259,830, the third is Japan with 186,250 and Germany with 129,875.
Earlier in early 2019, the Wealth-X report estimated that Vietnam ranked fourth globally for the growth of the number of rich people in the group of individuals with a net worth of US $ 1-30 million over the period 2018- 2023.
But the number of US billionaires is still only on the fingers. According to Forbes, in Vietnam last year for the first time there were 5 billionaires in USD. That is Mr. Pham Nhat Vuong – Chairman of the Vingroup Group was recorded assets in March 3.19 6.6 billion USD and ranked 239 th on the ranking of the richest people in the world. By the end of February 15, Forbes recorded billionaire Pham Nhat Vuong’s fortune to US $ 7.3 billion and ranked at 260.
The second is Ms. Nguyen Thi Phuong Thao – General Director of Vietjet Air with a net worth of 2.3 billion USD and ranked at 1,008. Currently, Thao’s net worth has increased to US $ 2.4 billion but her ranking has dropped to 1,089.
The third is Mr. Ho Hung Anh – Chairman of Techcombank with an asset value in early 2019 reached 1.7 billion USD and was ranked at 1,349. But now Forbes recorded Ho Hung Anh’s fortune plunging to $ 1.3 billion and falling to 1,845.
The fourth US dollar billionaire, Mr. Tran Ba ​​Duong – Chairman of Truong Hai Automobile Group – was also recorded with a net worth of 1.7 billion USD and ranked the same as Mr. Ho Hung Anh. Currently on Forbes, Mr. Tran Ba ​​Duong’s fortune is still at 1.7 billion USD but dropped to 1,489.
The fifth USD billionaire is Mr. Nguyen Dang Quang – Chairman of Masan Group with a net worth of 1.3 billion USD and ranked 1,717 in the list of USD billionaires in the world. However, Mr. Quang has now dropped out of Forbes’ list of billionaires in the world.
The boom of the middle class and the rich in Vietnam in recent years has also impacted the trend of real estate consumption. If before, urban residents tended to buy townhouses to “keep money”, now, having an ideal place, synchronous urban infrastructure, social infrastructure is the goal that this gender direction come. The wave of displacement from the crowded city center, crowded traffic to the suburban area also took place.
In fact, the absorption capacity of the market for the high-end real estate segment is quite large. According to Ms. Duong Thuy Dung, Senior Director of CBRE Vietnam, infrastructure issues such as flooding, traffic congestion, and environmental pollution are increasingly affecting the living conditions of residents in big cities. Therefore, suburban urban areas with full utilities and good connectivity have been well received by the market.
The fact that the market also shows that the recent excitement of the high-end and super-premium segments has recently been supported by many advantages such as increased population accumulation and appropriate policies for For many buyers. With the expanded legal framework, the new policy of allowing foreigners to own houses in Vietnam in 2015 as well as the stable macroeconomic development compared to other countries in the region has created many advantages and trust with investors. In addition, factors such as project quality, investor reputation as well as transparent legal information also partly create the attractiveness of Vietnam’s real estate market in general.

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