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25/10/2019

REAL ESTATE IN HO CHI MINH CITY IS MORE ATTRACTIVE THAN HANOI

Housing prices in HCMC tend to increase sharply, there are some areas that rise beyond Hanoi. This reflects the fact that the real estate market in HCMC is much more attractive than in Hanoi.

Reports from some real estate research firms show that prices in HCMC in the Quarter III/2019 are higher than in Hanoi, across all segments. In particular, the central area of Hanoi used to have a recorded high price, but now ranks behind Ho Chi Minh City.

(including the first 3 quarters of 2019) HO CHI MINH CITY HANOI
APARTMENT
Total sales More than 17,000 6,400
No. of projects for sale 14 4
Average primary price
(all segments)
2,067 USD/sqm 1,473 USD/sqm
Growth year over year Increase 23.8% Increase 6.5%
Status Strong growth Growth slowing
VILLAS, TOWNHOUSES, SHOPHOUSES
(only include products in real estate projects; houses built based on master plan and design from the investor)
Total new launches 264 N/A
Total sales 229 N/A
Average primary price 4,689 USM/sqm N/A
Growth year to year Increase 20.2% N/A
Status Strong growth N/A
OFFICE MARKET
Average rental value 28.8 USD/sqm/month 17.8 USD/sqm/month
Growth year to year Increase 5.9% Increase 4.0%
Status Rising Rising
RETAIL MARKET
Average rental value 45.8 USD/sqm/month 29.3 USD/sqm/month
Growth year to year Increase 0.2% Increase 2.8%
Status Stable Stable
INDUSTRIAL MARKET
Land price N/A 95 USD/sqm
Growth year over year N/A Increase 6.7%
Status N/A Rising

According to some real estate transaction companies, HCMC real estate market has selling prices and price growth rate are significantly higher than the Hanoi market.

The reasons why real estate in HCMC is always more attractive than Hanoi:

  • Most foreign companies coming to Vietnam choose HCMC to set up their representative office.
  • HCMC have more real estate choices than Hanoi.
  • The demand for buying and investing real estate in HCMC is always higher than in Hanoi.
  • Many investors from Hanoi choose HCMC as a target to invest.
  • The ability to exploit real estate business in Ho Chi Minh City market is high, so the fluctuations in price and profit margin are also superior.

 

Earlier, in a research report, real estate experts from the UK said that HCMC will develop similar to Shanghai (China), but house prices in Ho Chi Minh City are still low currently. In the coming time, it will  increase due to the dynamic development of this large economic center.