Vietnam's property prices rising strongly

[Viet]

GLOBAL PROPERTY GUIDE NEWS TEAM | July 08, 2020


Nominal house prices up 20.9% in HCMC, 4.8% in Hanoi during the year to Q1 2020

In Ho Chi Minh City, apartment prices surged 20.9% in Q1 2020 from a year earlier, to an average of US$2,452 per sq. m, according to Jones Lang La Salle Vietnam. Likewise in Hanoi, the capital, the average price of apartments rose by 4.8% y-o-y to US$1,474 per sq. m. in Q1 2020.

Demand and supply falling


In HCMC, take-up in Q1 2020 totalled only 1,980 units, less than half of the figures in the previous year, according to Jones Lang La Salle Vietnam. In fact, sales volume is equivalent to just 54% of total stock available for sale in Q1 2020, the lowest in two years. Similarly, take-up in Hanoi also dropped almost 42.2% q-o-q to 4,017 units in Q1 2020.

Supply remains limited. In HCMC, there were only 2,256 units launched in Q1 2020, the lowest level since 2014. In Hanoi, there were about 4,600 new launches in Q1 2020, equivalent to only around 65% of the previous quarter and the lowest level since 2015.

Rents, rental yields: yields are moderately good at 5%

The average rent for apartments in HCMC was $1,214.

Recent news: The Vietnamese economy grew strongly by 7% in 2019 from a year earlier, following expansions of 7.1% in 2018 and 6.9% in 2017. Vietnam is expected to continue growing this year, albeit at a much slower pace of 2.7%, amidst the coronavirus pandemic.


https://www.globalpropertyguide.com/news-vietnams-property-prices-rising-strongly-4077

 

[FairAndUnbiased]

One m2 in HCM costs more than Vietnam's GDP per capita.

 

[Mista]

It's not a good thing in the long run. Don't follow HK's and mainland China's footsteps.

 

[LittleFish]

Sigh for VN...VN has always been a good student of China, even on our bad aspects like this.

 

[Song Hong]

Oh no. This fake news? This is crazy.

There are lots of empty apartment and landed houses near my house at Hanoi Hoang Quoc Viet. Similarly a lot of apartment in HCM is not occupied.

Mortgage interest rate can be up to 10%. My saving interest rate is already 6%.

And Hanoi people salary is not so high -- around 500 USD.

I am in fantasy land.

 

[艹艹艹]

good for vietnam

 

[LittleFish]

The earlier you buy the more you earn bro, I'm not joking HCM will be like Beijing, Tokyo, HK eventually ---- 20-30 years salary = an apartment.

 

[Mista]

good for vietnam

The earlier you buy the more you earn bro, I'm not joking HCM will be like Beijing, Tokyo, HK eventually ---- 20-30 years salary = an apartment.

Yeah, if you have the opportunity you should.

But it's exactly this sort of mentality which pushes up prices. Self-fulfilling prophecy.

 

[Song Hong]

A lot of appartment in Vietnam is not so well maintained. HCM is better, while Hanoi is really horrible in estate maintenance. After 3-4 years, it became dilapidated.

The price of many Vietnam apartment is depreciation. It is also very hard to sell 2nd hand apartment. Too many non occupied apartment around.

 

[LittleFish]

Yeah, if you have the opportunity you should.

But it's exactly this sort of mentality which pushes up prices. Self-fulfilling prophecy.

I don't have extra money to invest in
The mentality you mentioned is shared among east asians.

 

[ChinaToday]

All credits go to the hard working Chinese migrants that is the main driving force in the economy ,people like my uncle is making a lot of money in Vietnam but sad to see the Vietnamese themselves still very poor compared to the Vietnamese chinese

 

[Viva_Viet]

The earlier you buy the more you earn bro, I'm not joking HCM will be like Beijing, Tokyo, HK eventually ---- 20-30 years salary = an apartment.

They dont have to buy house/apartments in big cities. Houses in rural areas r still cheap.

All credits go to the hard working Chinese migrants that is the main driving force in the economy ,people like my uncle is making a lot of money in Vietnam but sad to see the Vietnamese themselves still very poor compared to the Vietnamese chinese

Hoa ethnic is just like a second class and their properties can be confiscated at anytime like in 1979.

 

[Mista]

The mentality you mentioned is shared among east asians.

Indeed, that's why it requires strong government intervention rather than leaving it entirely to the free market.

 

[Journeyman]

Sigh for VN...VN has always been a good student of China, even on our bad aspects like this.

The op just want to cast an impression of high real estate prices in vietnam to the level of other countries. The reality is a different deal. The high price in this article is for the ultra luxury apartments that hardly get built and sell in vietnam. The new trend in vietnam for the middle class is the non luxury type of apartments because these apartments are brand new built, affordable, convenient, and safer to live. Most of the new affordable residential complex in vietnam is built by Vingroup. All of these complex have a world class school, hospital, convience stores, mega mall, and huge community park. You can search on youtube for vinhomes sportia, vinhomes oceanpark, vinhomes grand park and see for yourself. These complex have like at least 40,000 to over 50,000 units. Each unit can be as cheap as 700 million vnd for a studio to 1.2 billion vnd for a one bed room. You need to have 30% down payment while banks will loan you 70% for 30 to 35 years. However, if you buy Vinhomes, Vingroup will give you back voucher worth between 70 million to 200 million vnd to buy their Vinfast cars, it's a combo discount to buy Vingroup products. I have seen so many people sell these vouchers online for 30% off the face value. If you are a young couple making a combine 20 million vnd a month, you are more than capable to buy these Vinhomes apartment in addition to the fact that Vietnamese parents tend to help their kids a bit more when they buy their first home. Life is considered very good in vietnam if you live in Vingroup built home, drive Vingroup made car Vinfast, use vingroup made smartphone Vsmart, go to vingroup hospital and school, shop at vingroup mall and convience stores, relax at Vingroup resorts

 

[Song Hong]

You are full of BS. Vingroup only build luxury home. There is no information on how build affordable housing in Vietnam. But by observation I guess it is Vietnam Army.

A lot of apartment in Hanoi are built by Army and only sell to the army family. Their quality is so so but price is very affordable.

The op just want to cast an impression of high real estate prices in vietnam to the level of other countries. The reality is a different deal. The high price in this article is for the ultra luxury apartments that hardly get built and sell in vietnam. The new trend in vietnam for the middle class is the non luxury type of apartments because these apartments are brand new built, affordable, convenient, and safer to live. Most of the new affordable residential complex in vietnam is built by Vingroup. All of these complex have a world class school, hospital, convience stores, mega mall, and huge community park. You can search on youtube for vinhomes sportia, vinhomes oceanpark, vinhomes grand park and see for yourself. These complex have like at least 40,000 to over 50,000 units. Each unit can be as cheap as 700 million vnd for a studio to 1.2 billion vnd for a one bed room. You need to have 30% down payment while banks will loan you 70% for 30 to 35 years. However, if you buy Vinhomes, Vingroup will give you back voucher worth between 70 million to 200 million vnd to buy their Vinfast cars, it's a combo discount to buy Vingroup products. I have seen so many people sell these vouchers online for 30% off the face value. If you are a young couple making a combine 20 million vnd a month, you are more than capable to buy these Vinhomes apartment in addition to the fact that Vietnamese parents tend to help their kids a bit more when they buy their first home. Life is considered very good in vietnam if you live in Vingroup built home, drive Vingroup made car Vinfast, use vingroup made smartphone Vsmart, go to vingroup hospital and school, shop at vingroup mall and convience stores, relax at Vingroup resorts