Thousands of first-time home buyers in Vietnam are choosing to loan their houses and pay mortgage for up to 15 years, boosting the real estate loans by 22 percent this year until August.

There is a property rebound this year as more young home buyers are shifting to mortgage than cash. This has created an explosion in the home-loan industry in the country, which is now worth $40 billion.

According to Bloomberg News, home sales increased by almost 50 percent this year. This increase is driven by young Vietnamese, who accounts for 60 percent of the population in the country. The rising number of migration into Vietnam also contributed to the property rebound.

Buyers, along with policemen, carry bags filled with dong to buy their condominiums in high-rises in Hanoi six years ago. Now, it seems like, people are preferring loans. The typical mortgage buyers are young couples in their 30s earning $12,000 to $15,000 a year.

"The mortgage market in Vietnam is beginning to take off now," said Standard Chartered Bank Vietnam chief executive officer Nirukt Sapru. "As the younger generation gets richer, gets better-quality jobs - which is clearly happening in Vietnam - their ability to move out of grandmother's house increases."

Viet Nam News reported that property market in Ha Noi increased 11 percent year-on-year in November with 1,550 sales, as reported by the Housing and Real Estate Market Management Department under the Ministry of Construction. Successful transactions in the city went up 80 percent in a year-on-year surge with 17,750 successful transactions in the first 11 months of the year.

Meanwhile, Vietnamnet reported that there is an increase in activity in all sectors of the Vietnam real estate market in 2015. Robust economic conditions for the last two years is one of the major contributors for the strong real estate growth. Interest rates have also been dropping and inflation rate is only around 3 percent, which all helped boost the real estate industry in the country.

Standard Chartered Bank Vietnam expects the country's mortgage market to increase by $3 billion a year.