Ho Chi Minh City Property Market

Ho Chi Minh City and Southern provinces

- Office: There was no fresh supply in any grades, according to the market.

- Retail: Mall closures occurred in 3Q21. Don't go overboard with leasing.

- Residential: The average primary selling price was USD 2,683 per sqm, up 4.4% quarter over quarter and 10.9% year over year.

- Industrial: At USD 114 per sqm per lease period, the land price reached a new high.

The commercial and financial hub of Vietnam is Ho Chi Minh City Property Market, usually referred to as Saigon. This vibrant metropolis with over 10 million residents, which accounts for one-third of Vietnam's GDP, is regarded as the region's fastest-growing market for manufacturing and technology as well as the top emerging property market in Asia-Pacific.

Around 80,000 foreign people are thought to live as expats in Vietnam. The metropolitan area where real estate is changing in Ho Chi Minh City Property Market is where more than half of people live and work. The main target demographic in the high-end and luxury leasing segment is expats. Locals would prefer to buy or rent at a lesser price than paying these sums given that typical HCMC apartment rental costs range from USD 500 to 4,000 per month, depending on the size, location, and quality of the residence.

Due to its potential for expansion, Ho Chi Minh City Property Market has drawn international investment worth billions of dollars recently.

Ho Chi Minh City has experienced a surge in foreign investors purchasing flats in new complexes all around the city with the implementation of a new rule allowing foreigners to effectively own properties under a 50-year lease. This has caused a significant construction boom in addition to a domestic market that was already strong. Increasingly worried voices are mentioning the possibility of a bubble. That raises the question: In what direction is the Ho Chi Minh City Property Market changing?

Economic Highlights

Vietnam's economic hub is Ho Chi Minh City Property Market, which saw a 7.5% GDP increase and US$2.8 billion in FDI in the first half of 2017. The GDP per person in Ho Chi Minh City was $5,428 in 2016, more than double the national average. In 2020, the government wants to increase the GDP per person to $9,800 USD.

In particular, businesses relocating from China, where labor costs have increased to three times the average salary in Vietnam, are investing more in new plants in the manufacturing sector. In Vietnam, numerous international firms are setting up or growing their manufacturing facilities. Among them are Foxconn, a provider of mobile phones from Taiwan, Samsung, and Intel. Around 25% of Vietnam's industrial output is produced in the several industrial parks and economic zones that surround this metropolis of more than 10 million people. This draws a substantial expat population, whether it be management staff working in the factories, multinational corporations (MNCs), or foreign businesses with offices here.

With a young workforce, the city's business scene is particularly exciting and energetic, with a typical age of 30.1 years. Every year, more than a million young people enter the job force. This young, educated generation makes up a significant portion of the distinctive startup culture and strong entrepreneur community. Talented people are drawn to Ho Chi Minh City by a combination of its cultural ambiance, thriving startup scene, and concentration of cutting-edge businesses and technology.

Real Estate

Ho Chi Minh City Property Market has experienced phenomenal expansion in recent years, particularly since the new housing law went into force in July 2015. The property market has been driven by rising demand for high-quality properties from the significantly expanding middle and upper classes as well as an influx of foreign investors, especially in the high-end and luxury category.

Ho Chi Minh City's luxury real estate market is undersupplied because of the city's youth, especially in inner-city areas where international investors are most interested due to the great potential for capital gain and the excellent rental return expectations. The increase of expats working for multinational organizations or new businesses is being fueled by foreign direct investment (FDI), which in turn is fueling demand for office space and high-quality rental homes.

The majority of foreign investors are buying real estate along the new metro line that runs from District 1 (CBD) via Binh Thanh and District 2 to District 9, which is home to Saigon Hi-Tech Park. The most opulent homes in Ho Chi Minh City Property Market can be found in Districts 1 and 3, which are also the main business districts. Square meters in these neighborhoods start at US$4,500, and prices are predicted to rise quickly over the next few years as developers look to introduce boutique developments in prime city locations. Prices in CBD areas are predicted to reach US$6,000–10,000 per square meter, taking into consideration expensive land acquisition expenses, top-notch construction quality, and convenience features.

The most energetic residential area is District 2. Foreign real estate purchasers like Thao Dien and Thu Thiem, and the former is well-liked by affluent Vietnamese and Western expatriates because it provides easy access to the city center, the top international schools, wonderful restaurants, and fantastic retail amenities. With a range of residential and commercial developments starting to take flight, Thu Thiem is projected to become the new CBD. Long-term investors will find it to be the best option due to its proximity to District 1.

Ho Chi Minh City's CBD is just five minutes away from Binh Thanh District. Properties in Binh Thanh have strong rental yields and capital appreciation and are in high demand due to the growing demand for housing in central regions. Due to the growing scarcity of inner-city land and the CBD's projected growth over the next few years, the area will continue to change.

Lifestyle

People

With a population of almost 10 million, Ho Chi Minh Metropolis is the most populous city in the nation. In 2015, it had one of the greatest yearly population growth rates in the entire world. The city's GDP per capita was $5,000 in 2015, which is twice as much as the national average of $2,100 for Vietnam. The city's population is heavily influenced by migration, which has increased significantly over the past few years due to the city's strong economic expansion. There are already 60,000 or so foreigners living in the Ho Chi Minh City metropolitan area, which has resulted in a significant demand for high-quality homes and flats.

Cuisine

Ho Chi Minh City boasts a wide range of dining options, including both expensive and inexpensive options. The influx of immigrants from different provinces and nations has influenced the local food culture, which offers a variety of cuisines. While it is possible to find genuine Vietnamese food anywhere, several areas of Ho Chi Minh City are better known for particular types of food. For instance, District 1's Le Thanh Ton Street serves Japanese cuisine, while Thao Dien is well known to the international community for its trendy bistros and cafes in the Western manner.

Attractions

Right in the middle of the city, Ho Chi Minh City is renowned for its numerous historical landmarks, iconic colonial structures, and military artifacts. The picturesque Mekong Delta, also known as Vietnam's "rice bowl," is only one or two-hour drive to the southwest of Ho Chi Minh City and is home to renowned floating marketplaces, towns, and green fields. As an alternative, the nearby beaches of Phan Thiet and Vung Tau are great for a weekend break from the hectic city life.

Activities

Due to the numerous activities that take place nonstop, Ho Chi Minh City Property Market is also known as the city that never sleeps. Being the undisputed party capital of Vietnam, its residents can choose from hundreds of rooftop bars, pubs, and nightclubs for a proper night out. This location also hosts a lot of significant sporting events and concerts. For those who prefer more laid-back pursuits, hanging out with friends and family in hip restaurants and coffee shops by the river in Thao Dien, District 2, is generally a treat.