Key Takeaways
- Surge in Apartment Prices: In 2024, Hanoi experienced a staggering 31% year-on-year increase in apartment prices, reflecting heightened demand and market dynamics.
- Strong Growth in Land Sales: Searches for land sales surged by 45% year-on-year in the first half of 2024, indicating a robust interest in land investment, particularly in emerging urban areas.
- Challenges in Housing Affordability: Financial constraints are impacting potential buyers, with 63% citing affordability as a primary barrier to purchasing property, leading many to await a decline in housing prices.
The Vietnamese real estate market has become a focal point of interest for investors, analysts, and homebuyers alike, particularly as the nation continues its rapid economic development and urbanization.
With a population exceeding 98 million and an emerging middle class that is projected to grow exponentially, Vietnam presents a unique landscape for real estate investment.
As the country embarks on ambitious infrastructure projects and modernization initiatives, the real estate sector stands at the forefront, reflecting broader economic trends and societal changes.
In 2024, the Vietnamese real estate market is poised for significant transformations, influenced by various factors such as demographic shifts, technological advancements, and evolving consumer preferences. Understanding these dynamics is essential for stakeholders aiming to navigate the complexities of this vibrant market. As urban areas continue to expand and new residential and commercial developments emerge, discerning the key statistics and trends will empower investors and developers to make informed decisions.
A myriad of statistics will illuminate the current state of the market, from average property prices in bustling cities like Ho Chi Minh City and Hanoi to rental trends that highlight the shifting demands of urban dwellers. Analyzing these figures not only provides insight into the present but also helps forecast future movements, allowing investors to position themselves strategically within the evolving landscape.
Moreover, as Vietnam integrates cutting-edge technology into its real estate practices, we are witnessing the rise of proptech solutions that streamline transactions, enhance property management, and improve customer experiences. This technological evolution, coupled with a growing emphasis on sustainability and green building practices, is redefining the market, making it more appealing to environmentally conscious consumers and investors.
In addition to examining emerging trends and statistics, this blog will delve into the challenges facing the Vietnamese real estate sector. Regulatory hurdles, economic fluctuations, and market saturation are just a few of the obstacles that stakeholders must consider as they navigate this dynamic environment. By identifying these challenges, investors can develop more resilient strategies, enabling them to thrive even amidst uncertainty.
As we explore the top Vietnamese real estate market statistics and trends in 2024, we will equip you with the knowledge needed to capitalize on opportunities and make sound investments. This comprehensive analysis will serve as a valuable resource, not only for seasoned investors but also for newcomers eager to understand the intricacies of this fast-paced market. Whether you are looking to invest in residential properties, commercial spaces, or land development, understanding the underlying statistics and trends will be crucial to your success in Vietnam’s flourishing real estate sector.
In the following sections, we will provide a detailed overview of the current state of the market, analyze key statistics, highlight emerging trends, and outline potential challenges, ensuring you are well-prepared to navigate the complexities of the Vietnamese real estate landscape in 2024 and beyond.
Top Vietnamese Real Estate Market Statistics & Trends in 2024
- The Vietnamese Real Estate Market Size is valued at USD25.26 billion in 2024
- The Vietnamese Real Estate Market Size is estimated to reach USD45.62 billion in 2029
- The Vietnamese Real Estate Market Size CAGR is expected to grow by 12.55% till 2029
- The Vietnamese Urban Population is more than 40% and expected to reach 45% by 2030
- Vietnam is expected to add another 70 million square meters of housing every year
- There were 14,349 successful transactions for condominiums and individual houses
- Vietnam’s Residential Market Value to reach USD4.25 trillion in 2024
- House prices in HCMC have been rising with a 6% YoY increase in the first half of 2024
- House prices in District 1, Ho Chi Minh City, Vietnam saw an 8.2% YoY rise in June 2024
- House Prices in D1, HCMC, reach USD10k per square meter in June 2024
- Searches for Land Sales increase by 45% YoY
- Apartment prices in Hanoi, Vietnam increased by 31% YoY in 2024
- Private house prices in Hanoi, Vietnam surged by 32%
- Prices for land, villas, and shophouses in Hanoi Vietnam increased by 19%, 18%, and 10%, respectively
- Searches for apartments in Hanoi increases 45% YoY in H1 2024
- Many resort real estate developers reported losses in H12024
- New land price list is likely to cause a 15-20% hike in housing prices
- Primary market accounts for 55% of apartment purchases in HCMC, Vietnam
- Only 1,700 new apartments were offered for sale in HCMC, Vietnam in the first six months of 2024
- 80% of new apartments in HCMC, Vietnam are premium units priced at VND60 million per square meter or higher
- Secondary market prices rose by 3% YoY in Q2 of 2024
- Rents for high-end retail property in HCMC hit US$280 per square meter in H1 of 2024
- Only 6% of new apartments, or 774 units, were sold in the south of Vietnam
- 54% of the new apartment sales were between VND 30-35 million per square meter
- 63% of respondents cited financial constraints as the primary reason for not buying a property
- 74% want apartments priced at VND40 million per square meter in HCMC, Vietnam
- HCMC apartment prices to rise by 5-10% by the end of 2024
- Real estate companies in HCMC reported revenues of VND 173 trillion
- Short-term rents for serviced apartments in HCMC Vietnam have increased by 10-15% YoY in Q3 2024
- Vietnam is rated the least transparent property market in Southeast Asia
- Coworking space monthly rent is $344 per person in HCMC Vietnam
- Supply of shared offices in HCMC Vietnam rose by about 20% in H1 2024
- HCMC, Vietnam has over 1.6 million square meters of Grade A and B office space available for lease
- Nearly 50% believe Hanoi apartments are overpriced
- Prices of new apartments rise by 20% YoY in Da Nang, Vietnam
1. The Vietnamese Real Estate Market Size is valued at USD25.26 billion in 2024
(Mordor Intelligence)
The Vietnamese real estate market size is projected to reach a value of USD 25.26 billion in 2024, reflecting the rapid growth and increasing demand across key sectors such as residential, commercial, and industrial properties. This significant market expansion is driven by urbanization, rising foreign investments, and a growing middle class, making Vietnam an attractive destination for both domestic and international real estate investors. With evolving infrastructure and government policies favoring property development, the market is poised to continue its upward trajectory, offering lucrative opportunities in cities like Hanoi, Ho Chi Minh City, and Da Nang.
2. The Vietnamese Real Estate Market Size is estimated to reach USD45.62 billion in 2029
(Mordor Intelligence)
The Vietnamese real estate market is projected to reach an impressive size of USD 45.62 billion by 2029, showcasing the country’s robust economic growth and expanding property sector. This forecasted surge reflects strong demand for residential, commercial, and industrial properties, driven by rapid urbanization, infrastructure development, and increasing foreign investments. Major cities like Ho Chi Minh City, Hanoi, and Da Nang are witnessing significant real estate activities, while the government’s favorable policies continue to boost investor confidence. As Vietnam solidifies its position as a key player in Southeast Asia’s property market, this growth trajectory is expected to accelerate in the coming years.
3. The Vietnamese Real Estate Market Size CAGR is expected to grow by 12.55% till 2029
(Mordor Intelligence)
The Vietnamese real estate market is anticipated to experience a robust compound annual growth rate (CAGR) of 12.55% until 2029, reflecting the sector’s dynamic expansion and resilience. This significant growth is fueled by a combination of factors, including rapid urbanization, increasing foreign direct investment, and a rising middle class with greater purchasing power. Major developments in infrastructure and real estate projects, particularly in key urban centers like Ho Chi Minh City and Hanoi, further stimulate market demand. Additionally, supportive government policies and a strong economic outlook contribute to a favorable investment climate, positioning Vietnam as a lucrative destination for real estate investments in Southeast Asia. As a result, stakeholders are optimistic about the sustained growth trajectory of the market in the years to come.
4. The Vietnamese Urban Population is more than 40% and expected to reach 45% by 2030
(Mordor Intelligence)
Vietnam’s urban population currently exceeds 40% and is projected to rise to 45% by 2030, indicating a significant trend towards urbanization. This demographic shift is driven by factors such as economic growth, rural-to-urban migration, and improved living standards. As more individuals relocate to urban areas for better job opportunities, education, and access to services, cities like Ho Chi Minh City and Hanoi are experiencing heightened demand for housing and infrastructure. This urban population growth is expected to stimulate the real estate market, with increased investments in residential, commercial, and mixed-use developments to accommodate the expanding population. Consequently, stakeholders in the real estate sector should prepare for this urbanization trend, which will play a crucial role in shaping the Vietnamese economy and urban landscape over the next decade.
5. Vietnam is expected to add another 70 million square meters of housing every year
(Mordor Intelligence)
Vietnam is anticipated to add approximately 70 million square meters of housing annually to meet the increasing demand driven by urbanization and population growth. This ambitious expansion is essential to accommodate the growing urban population, which is projected to reach 45% by 2030. The Vietnamese government and real estate developers are responding to this demand by investing in various housing projects, including affordable apartments, luxury condominiums, and social housing initiatives. As cities expand and more people migrate to urban areas for better opportunities, the housing market is set to flourish, enhancing living conditions and supporting economic development. This trend not only addresses the immediate housing needs but also contributes to long-term urban planning and sustainability efforts across the country.
6. There were 14,349 successful transactions for condominiums and individual houses
(Mordor Intelligence)
In Q4 2022, the Vietnamese real estate market experienced notable transaction volumes across various property types. The successful transaction volume for condominiums and individual houses reached 14,349 transactions, representing 28% of Q3’s total. Regionally, the North saw 3,821 transactions, the Central region recorded 5,968 transactions, and the South had 4,560 transactions. Key cities like Hanoi and Ho Chi Minh City contributed 454 and 1,986 transactions respectively. Meanwhile, the market for land plots surged with 149,197 successful transactions, marking a 130% increase from Q3 2022. The North recorded 29,402 land plot transactions, the Central region 32,579, and the South dominated with 87,216 successful transactions, reflecting growing investor interest, particularly in the southern provinces. These statistics underscore a robust demand for land plots, especially in high-growth regions, alongside continued interest in residential properties.
7. Vietnam’s Residential Market Value to reach USD4.25 trillion in 2024
(Statista)
Vietnam’s residential market is projected to reach a remarkable value of USD 4.25 trillion in 2024, reflecting the country’s rapid economic growth and urbanization. This surge is driven by increased demand for housing, fueled by a rising urban population and growing middle class, which significantly influences purchasing power and housing preferences. The government’s initiatives to enhance infrastructure, coupled with foreign investment in real estate, further bolster market expansion. This growth presents lucrative opportunities for developers and investors alike, as they seek to capitalize on the evolving landscape of Vietnam’s residential sector. As the market matures, trends such as eco-friendly housing and smart home technology are likely to gain traction, reshaping the future of residential living in Vietnam.
8. House prices in HCMC have been rising with a 6% YoY increase in the first half of 2024
(Vietnam Briefing)
In the first half of 2024, house prices in Ho Chi Minh City (HCMC) experienced a notable 6% year-on-year increase, reflecting the city’s robust real estate market dynamics. This rise is attributed to several factors, including heightened demand driven by a growing urban population and increasing economic activity in the region. Additionally, limited housing supply, coupled with rising construction costs, has put upward pressure on prices, making homeownership more challenging for many potential buyers. Investors are particularly keen on HCMC’s residential properties, as the city continues to attract both domestic and foreign investments, reinforcing its position as a thriving economic hub in Vietnam. As housing prices trend upward, it highlights the need for strategic planning and development to meet the needs of an evolving market landscape.
9. House Prices in District 1, Ho Chi Minh City, Vietnam saw an 8.2% YoY rise in June 2024
(Vietnam Briefing)
In June 2024, house prices in District 1 of Ho Chi Minh City witnessed an 8.2% year-on-year increase, underscoring the area’s status as one of the most sought-after real estate markets in Vietnam. This surge can be attributed to the district’s prime location, proximity to key business districts, and an array of high-end amenities that attract affluent buyers and investors. The demand for residential properties in District 1 is fueled by a growing population, urbanization, and the ongoing development of infrastructure, which enhances accessibility and livability. As a result, real estate in this district remains a lucrative investment opportunity, reflecting the broader trends in Vietnam’s vibrant real estate market. With continued economic growth and urban expansion, experts anticipate that house prices in District 1 will maintain their upward trajectory, making it essential for potential buyers and investors to stay informed about market dynamics.
10. House Prices in D1, HCMC, reach USD10k per square meter in June 2024
(Vietnam Briefing)
In June 2024, house prices in District 1 of Ho Chi Minh City soared to an impressive USD 10,000 per square meter, marking a significant milestone in the real estate market. This rapid increase highlights District 1’s reputation as the most prestigious and desirable area for residential investments in the city. Factors contributing to this surge include the district’s prime location, which offers easy access to major business centers, luxury shopping venues, and a vibrant cultural scene. Additionally, ongoing urban development and infrastructure improvements are enhancing the area’s appeal, attracting both local and foreign investors. The rise to USD 10,000 per square meter reflects a growing demand for high-end properties, driven by affluent buyers seeking premium living spaces. As the economic landscape continues to evolve and urbanization intensifies, District 1 is poised to maintain its status as a key player in Vietnam’s dynamic real estate market, presenting substantial investment opportunities for those looking to capitalize on this trend.
11. Searches for Land Sales increase by 45% YoY
(Vietnam Briefing)
In the first half of 2024, the Vietnamese real estate market saw a surge in online searches, highlighting growing interest in various property types. Searches for land sales exhibited the most significant growth, rising by 45% year-on-year, as land continues to be a preferred investment for many. This was followed by a 33% increase in searches for apartments, reflecting the sustained demand for urban residential properties. Villas and shophouses also saw notable increases, with searches up by 25% and 22%, respectively, as these property types attract buyers looking for upscale living and business opportunities. These trends indicate strong market dynamics and shifting preferences within Vietnam’s real estate landscape.
12. Apartment prices in Hanoi, Vietnam increased by 31% YoY in 2024
(Vietnam Briefing)
In the first half of 2024, Hanoi’s real estate market witnessed significant growth, with apartment prices surging by 31% year-on-year. This sharp increase reflects the city’s rising demand for urban housing, driven by rapid population growth, expanding infrastructure, and increasing interest from both domestic and foreign investors. The capital’s property market remains highly competitive, particularly in prime areas where the supply of new apartments is limited, further fueling price hikes. This trend highlights Hanoi as one of Vietnam’s most dynamic real estate markets, with apartments becoming increasingly sought-after, despite the steep rise in prices.
13. Private house prices in Hanoi, Vietnam surged by 32%
(Vietnam Briefing)
In 2024, private house prices in Hanoi experienced a remarkable surge of 32%, reflecting a dynamic shift in the city’s real estate landscape. This significant increase is attributed to several factors, including a booming urban population, rising demand for residential properties, and limited housing supply in prime locations. As more people migrate to Hanoi for work and lifestyle opportunities, the competition for private homes has intensified, pushing prices higher. Additionally, the government’s ongoing investments in infrastructure and public services have further enhanced the attractiveness of the city, making private homes even more desirable. This price escalation highlights the growing trend of urbanization in Vietnam and the escalating value of residential properties, positioning Hanoi as a lucrative market for both local and foreign investors. As this trend continues, potential buyers and investors should keep a close watch on the market dynamics to make informed decisions.
14. Prices for land, villas, and shophouses in Hanoi Vietnam increased by 19%, 18%, and 10%, respectively
(Vietnam Briefing)
In 2024, the prices for land, villas, and shophouses in Hanoi, Vietnam, saw notable increases, with land prices rising by 19%, villas by 18%, and shophouses by 10% year-on-year. This upward trend reflects Hanoi’s growing demand for real estate, driven by urban expansion, population growth, and increased investor interest. The sharp rise in land and villa prices indicates the increasing appeal of upscale properties, while shophouses continue to attract business owners due to their dual-purpose nature as both commercial and residential spaces. As Hanoi’s infrastructure and economic growth accelerate, real estate prices in key areas are expected to maintain their upward trajectory.
15. Searches for apartments in Hanoi increases 45% YoY in H1 2024
(Vietnam Briefing)
In the first half of 2024, searches for apartments in Hanoi surged by an impressive 45% year-on-year, signaling a robust demand for urban housing amidst a competitive market. This trend reflects a growing interest among buyers and investors, driven by factors such as urbanization, changing lifestyles, and the need for modern living spaces. Additionally, searches for private houses rose by 33%, while shophouses experienced a 27% increase in interest, highlighting their appeal as both residential and commercial properties. Villas also saw a notable 9% rise in search activity, indicating a sustained interest in premium living options. This surge in property searches underscores the evolving preferences of Hanoi residents and investors, emphasizing the vibrant dynamics of the city’s real estate market.
16. Many resort real estate developers reported losses in H12024
(Vietnam Briefing)
In the first half of 2024, many resort real estate developers in Vietnam reported significant losses, reflecting the ongoing challenges in the sector. Factors such as declining tourist arrivals, oversupply of properties, and rising operational costs have impacted profitability. Despite the country’s recovery from the pandemic, the resort real estate market has struggled to regain momentum, with developers facing difficulties in maintaining demand for high-end vacation properties. These losses highlight the need for market adjustments and strategic shifts to sustain future growth in Vietnam’s resort real estate sector.
17. New land price list is likely to cause a 15-20% hike in housing prices
(Vietnam Briefing)
The introduction of a new land price list as part of the amendments to Vietnam’s Land Law, effective from August 1, 2024, is expected to significantly impact the real estate market, driving up construction costs and potentially causing a 15-20% hike in housing prices. Unlike the previous fixed framework, the new land price list is adjusted annually and is based on various factors, including land use, lease term, and other market-driven elements, making it more aligned with current market values. This shift aims to create a more dynamic and transparent land valuation system but also places additional pressure on developers, who are likely to pass on higher costs to homebuyers. As a result, both property investors and future homeowners may face higher purchase prices, especially in key urban areas where land prices are already elevated.
18. Primary market accounts for 55% of apartment purchases in HCMC, Vietnam
(VNExpress)
In the second quarter of 2024, Ho Chi Minh City’s primary market for apartments experienced a notable decline, with its share of apartment purchases dropping to 55%, down from 68% in the first quarter. This reduction highlights a shift in buyer behavior, as more purchasers may be turning to the secondary market or exploring other investment opportunities outside the city’s primary sector. The drop could also be attributed to increasing prices in new developments, stricter lending conditions, or limited supply in certain districts. Despite this, HCMC remains a key player in Vietnam’s real estate landscape, but the evolving dynamics in the primary market reflect broader changes in buyer preferences and economic factors influencing property transactions.
19. Only 1,700 new apartments were offered for sale in HCMC, Vietnam in the first six months of 2024
(VNExpress)
In the first six months of 2024, Ho Chi Minh City saw the introduction of only 1,700 new apartments, a sharp decline compared to previous years. This figure represents just half of the supply seen in recent years and a mere 10th of the apartment offerings prior to the Covid-19 pandemic. The dramatic drop in new apartment listings highlights ongoing supply chain challenges, regulatory hurdles, and market constraints faced by developers. This reduced inventory has contributed to heightened competition among buyers and rising property prices, further intensifying demand in an already limited market. With fewer new projects entering the market, this trend could signal prolonged supply shortages, putting additional pressure on affordability in the city’s real estate sector.
20. 80% of new apartments in HCMC, Vietnam are premium units priced at VND60 million per square meter or higher
(VNExpress)
Of the limited 1,700 new apartments offered for sale in Ho Chi Minh City during the first half of 2024, a significant 80% are classified as premium units, with prices starting at VND 60 million per square meter or higher. This highlights the city’s growing focus on luxury real estate, catering primarily to high-net-worth individuals and foreign investors. The dominance of premium units in the market underscores the widening gap between supply and demand for affordable housing, making it increasingly difficult for middle-income buyers to enter the property market. As developers prioritize high-end projects, the availability of affordable housing options remains constrained, further driving up prices in lower-tier segments.
21. Secondary market prices rose by 3% YoY in Q2 of 2024
(VNExpress)
In the second quarter of 2024, secondary market prices in Vietnam’s real estate sector saw a 3% year-on-year increase, reflecting the rising demand for resale properties amid limited supply in the primary market. This price growth is largely driven by buyers seeking more affordable alternatives to the high-priced units dominating new developments, particularly in key urban areas like Ho Chi Minh City and Hanoi. As new apartment listings remain constrained and premium units dominate the primary market, many investors and homebuyers are turning to the secondary market for better value. This trend highlights the ongoing imbalance between supply and demand, further boosting the attractiveness of resale properties.
22. Rents for high-end retail property in HCMC hit US$280 per square meter in H1 of 2024
(VNExpress)
In the first half of 2024, rents for high-end retail property in Ho Chi Minh City surged to an all-time high, averaging US$280 per square meter. This significant increase is attributed to the limited supply of premium retail spaces in prime locations, driving up competition among businesses seeking to establish a presence in the city’s bustling commercial hubs. Year-on-year, rents have risen by 18%, while compared to five years ago, prices have jumped by an impressive 60-70%. This upward trend reflects the strong demand for luxury retail spaces from international brands and affluent consumers, as Ho Chi Minh City continues to solidify its position as a major retail and economic center in Southeast Asia.
23. Only 6% of new apartments, or 774 units, were sold in the south of Vietnam
(VNExpress)
In August 2024, only 6% of new apartments, equivalent to just 774 units, were sold in southern Vietnam, reflecting a significant slowdown in the real estate market. This drop in sales can be attributed to high property prices and increasing bank interest rates, which have made homeownership less affordable for many buyers. As financial burdens mount, potential investors and homeowners are hesitant to commit to property purchases, particularly in an environment where borrowing costs are steadily rising. This trend highlights the challenges facing both developers and buyers in the region, as high costs continue to suppress demand for new residential units.
24. 54% of the new apartment sales were between VND 30-35 million per square meter
(VNExpress)
In August 2024, 54% of apartment sales in southern Vietnam were concentrated in units priced between VND 30-35 million per square meter (approximately US$1,222-1,426). This pricing bracket reflects the growing demand for mid-range housing, as it offers a more accessible option for buyers compared to the higher-end market, which has been impacted by escalating prices and rising interest rates. The preference for mid-tier units underscores a shift in buyer behavior, with many seeking affordable properties that balance cost with location and amenities. As a result, developers focusing on this segment are likely to see more consistent demand despite broader market challenges.
25. 63% of respondents cited financial constraints as the primary reason for not buying a property
(VNExpress)
A recent survey revealed that 63% of respondents cited financial constraints as the primary reason for postponing property purchases. Declining incomes have made potential buyers hesitant to take out bank loans, while rising down payment requirements are becoming increasingly unaffordable for many. As borrowing costs rise and household budgets tighten, many prospective homeowners are choosing to wait for housing prices to decrease before making a commitment. This cautious approach reflects growing uncertainty in the market, where high interest rates and property costs are deterring buyers from entering into long-term financial obligations.
26. 74% want apartments priced at VND40 million per square meter in HCMC, Vietnam
(VNExpress)
In Ho Chi Minh City, Vietnam, a significant 74% of potential homebuyers are seeking apartments priced at around VND40 million per square meter. However, the majority of available units are priced above this range, creating a gap between market supply and buyer demand. This affordability issue is driving many prospective buyers to either delay their purchases or lower their expectations. As housing prices continue to rise, the city’s real estate market faces growing pressure to meet the demand for more affordable housing options. Addressing this imbalance could play a key role in shaping future market trends.
27. HCMC apartment prices to rise by 5-10% by the end of 2024
(VNExpress)
By the end of 2024, apartment prices in Ho Chi Minh City are expected to rise by 5-10%, driven by a combination of high demand and limited supply. Factors such as increasing construction costs, land price hikes, and ongoing urban development are pushing prices higher, especially in central and highly sought-after areas. Despite financial challenges such as rising interest rates, the demand for housing remains robust, particularly among investors and affluent buyers. This projected price increase underscores the continuing pressure on the city’s real estate market, making it even more challenging for middle-income buyers to afford homes.
28. Real estate companies in HCMC reported revenues of VND 173 trillion
(VNExpress)
In the first eight months of 2024, real estate companies in Ho Chi Minh City reported revenues totaling VND 173 trillion (approximately US$7 billion), marking a 6.1% increase year-on-year, according to the city’s Statistics Office. This growth highlights the resilience of the real estate sector despite ongoing challenges such as rising construction costs and high-interest rates. The revenue boost can be attributed to strong demand in the premium and mid-range housing segments, as well as increasing activity in commercial real estate. This positive financial performance underscores the ongoing appeal of HCMC’s property market, even amid economic uncertainties.
29. Short-term rents for serviced apartments in HCMC Vietnam have increased by 10-15% YoY in Q3 2024
(VNExpress)
In the third quarter of 2024, short-term rents for serviced apartments in Ho Chi Minh City increased by 10-15% compared to the same period in the previous year. This surge is primarily driven by heightened demand from expatriates, business travelers, and digital nomads seeking flexible and high-quality accommodations in the city’s key business districts. Limited supply of serviced apartments, coupled with increasing operational costs, has further contributed to the rent hikes. As more professionals and international firms continue to establish a presence in HCMC, the demand for serviced apartments is expected to remain strong, keeping rental prices on an upward trajectory.
30. Vietnam is rated the least transparent property market in Southeast Asia
(VNExpress)
Vietnam was ranked as the least transparent property market in Southeast Asia, according to JLL’s 2024 Global Real Estate Transparency Index. Out of 89 countries and territories assessed, Vietnam placed 49th, trailing behind regional counterparts like Singapore, Thailand, Malaysia, Indonesia, and the Philippines. The country’s lower transparency rating stems from challenges in regulatory enforcement, inconsistent data availability, and a lack of clear governance frameworks. Despite significant strides in economic growth and real estate development, this transparency gap poses challenges for both foreign investors and local buyers, making it crucial for Vietnam to address these issues to enhance market confidence and attract more international investment.
31. Coworking space monthly rent is $344 per person in HCMC Vietnam
(VNExpress)
In the first half of 2024, the monthly lease for coworking spaces in high-end buildings located in Ho Chi Minh City’s downtown District 1 increased by 5% year-on-year, reaching $344 per person. This rise reflects the growing demand for flexible office spaces, driven by startups, remote workers, and multinational companies seeking premium locations with modern amenities. District 1, being the central business hub, remains a prime choice for businesses, further contributing to the upward trend in coworking space rental costs. Despite economic challenges, the demand for these premium coworking environments continues to grow, especially in sought-after urban areas.
32. Supply of shared offices in HCMC Vietnam rose by about 20% in H1 2024
(VNExpress)
In the first half of 2024, the supply of shared offices in Ho Chi Minh City saw a notable increase of 20%, reflecting the city’s growing demand for flexible workspaces. HCMC now boasts 120 flexible work centers, operated by 28 service providers, catering to a diverse range of businesses, freelancers, and remote workers. This surge in supply highlights the expanding coworking and shared office market, as companies increasingly prioritize flexibility and cost-efficiency. The rise of remote and hybrid work models continues to drive the popularity of these spaces, positioning HCMC as a key player in Southeast Asia’s flexible workspace market.
33. HCMC, Vietnam has over 1.6 million square meters of Grade A and B office space available for lease
(VNExpress)
Ho Chi Minh City, Vietnam, now offers over 1.6 million square meters of Grade A and B office space available for lease. This vast inventory of premium and high-quality office spaces caters to the growing demand from multinational corporations, startups, and local businesses looking to establish or expand their presence in the city’s vibrant business districts. The availability of these office spaces, particularly in central areas, reinforces HCMC’s role as a major economic hub in Southeast Asia, attracting both foreign and domestic companies seeking modern, well-equipped office environments.
34. Nearly 50% believe Hanoi apartments are overpriced
(VNExpress)
A recent VnExpress survey involving 3,400 readers revealed that nearly half of the respondents believe that apartments in Hanoi are significantly overpriced. This sentiment reflects the ongoing challenges in the real estate market, as many potential buyers have been compelled to lower their expectations or even reconsider their purchasing decisions entirely due to the relentless rise in property prices. The findings highlight growing concerns about affordability in Hanoi’s real estate sector, prompting many individuals to seek alternative options or delay their home-buying plans until market conditions stabilize. This trend underscores the pressing need for more accessible housing solutions in the capital.
35. Prices of new apartments rise by 20% YoY in Da Nang, Vietnam
(VNExpress)
In the second quarter of 2024, Da Nang City in central Vietnam experienced a substantial increase in the average price of new apartments, which rose by 20% year-on-year, now ranging between $3,000 and $3,500 per square meter. This significant price surge is indicative of the city’s burgeoning popularity among both local and foreign investors, driven by its strategic coastal location, improved infrastructure, and rising tourism appeal. As Da Nang continues to develop into a vibrant urban center, the demand for high-quality residential properties is expected to remain strong, further fueling price increases in the competitive real estate market.
Conclusion
As we reflect on the landscape of the Vietnamese real estate market in 2024, it is evident that the sector is undergoing significant transformations, shaped by various economic, social, and regulatory factors. The data and insights gathered throughout this blog reveal a complex yet promising scenario for investors, developers, and homebuyers alike.
Summary of Key Insights
- Market Growth: The real estate market in Vietnam has demonstrated resilience and adaptability, with significant growth observed in various segments, particularly in urban centers like Ho Chi Minh City and Hanoi. The demand for premium properties, especially in the form of apartments and serviced spaces, underscores a shift in buyer preferences towards quality living conditions.
- Emerging Trends: Notable trends such as the increasing popularity of shared office spaces and the surge in searches for land sales signal a transformation in work and living arrangements, influenced by the rise of remote work and digital nomadism. These trends are reshaping how properties are marketed and what amenities are prioritized in new developments.
- Price Dynamics: The dramatic increase in apartment prices in cities like Hanoi and Da Nang, along with the steady rise in rents for premium retail and office spaces, highlights the competitive nature of the real estate market. However, concerns about affordability and perceptions of overpriced properties persist among potential buyers, influencing their purchasing decisions and strategies.
- Regulatory Landscape: Amendments to land laws and the introduction of new pricing frameworks are expected to enhance market transparency, potentially driving further investment. Yet, the anticipated increase in housing prices due to rising construction costs raises questions about long-term affordability for the average consumer.
Future Outlook
Looking ahead, the future of the Vietnamese real estate market appears promising yet challenging. The following factors will play crucial roles in shaping market dynamics:
- Economic Growth: Vietnam’s robust economic growth, fueled by foreign direct investment and increasing domestic consumption, will continue to support the real estate sector. As the country integrates further into global markets, the demand for both residential and commercial properties is likely to escalate.
- Urbanization: Rapid urbanization trends, particularly in major cities, will lead to increased housing demand. As more people migrate to urban areas seeking job opportunities, the pressure on the housing market will intensify, necessitating innovative solutions to meet this demand sustainably.
- Sustainability and Technology: As global awareness of sustainability grows, developers are increasingly focusing on eco-friendly projects. The integration of smart technologies in real estate developments will likely attract environmentally conscious buyers, providing a competitive edge in the market.
- Investment Opportunities: For investors, the Vietnamese real estate market presents a wealth of opportunities, particularly in emerging cities and districts. Understanding local market dynamics, buyer behavior, and regulatory frameworks will be critical for making informed investment decisions.
Conclusion
In conclusion, the Vietnamese real estate market in 2024 stands at a pivotal juncture, characterized by impressive growth rates, evolving buyer preferences, and a challenging affordability landscape. Stakeholders, from developers to investors, must stay attuned to market trends and adapt their strategies accordingly to capitalize on the burgeoning opportunities while navigating potential pitfalls. As Vietnam continues to solidify its position as a key player in Southeast Asia, the real estate sector will undoubtedly remain a focal point for economic growth and development. By embracing innovation, sustainability, and inclusivity, the Vietnamese real estate market can pave the way for a brighter, more accessible future for all participants in this dynamic sector.
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What are the key statistics for the Vietnamese real estate market in 2024?
The Vietnamese real estate market in 2024 shows significant growth, with apartment prices in Hanoi up 31% year-on-year and land sales searches rising by 45%.
How have apartment prices changed in Vietnam in 2024?
In 2024, apartment prices in Hanoi increased by 31%, while Ho Chi Minh City is expected to see a rise of 5-10% by year-end, driven by high demand.
What trends are shaping the Vietnamese real estate market in 2024?
Key trends include increasing demand for land, a shift towards premium apartments, and rising rental prices in major cities like Ho Chi Minh City and Hanoi.
What challenges does the Vietnamese real estate market face in 2024?
Challenges include affordability issues, high interest rates, and regulatory changes impacting investment and property prices, leading to hesitancy among buyers.
How has the transaction volume for properties changed in 2024?
In 2024, the transaction volume for condominiums and houses decreased to 14,349, while land plot transactions surged to 149,197, reflecting shifting buyer interests.
What are the rental trends in Ho Chi Minh City for 2024?
Rental prices for high-end retail properties in Ho Chi Minh City surged 18% year-on-year, reaching an average of $280 per square meter, driven by limited supply.
How has the secondary market performed in 2024?
The secondary market saw a 3% year-on-year price increase in the second quarter of 2024, indicating a growing demand for existing properties amid limited new supply.
What is the outlook for new apartment supply in HCMC?
Only around 1,700 new apartments were offered for sale in HCMC in the first half of 2024, significantly lower than pre-Covid levels, constraining market options.
What is the average price range for new apartments in Da Nang?
The average price of new apartments in Da Nang rose by 20% year-on-year in the second quarter of 2024, now priced between $3,000 and $3,500 per square meter.
What percentage of new apartments in HCMC are premium units?
Approximately 80% of new apartments in HCMC are premium units, priced at VND 60 million per square meter or higher, reflecting a shift towards luxury offerings.
How are financial constraints impacting homebuyers in Vietnam?
In 2024, 63% of potential buyers cited financial constraints as a key reason for not purchasing property, leading many to delay their buying decisions.
What do buyers prefer in terms of pricing for apartments in HCMC?
Seventy-four percent of buyers are seeking apartments priced at VND 40 million per square meter, but most available units exceed VND 50 million, limiting options.
What are the future predictions for the HCMC apartment market?
HCMC apartment prices are expected to rise by 5-10% by the end of 2024 due to sustained demand and limited new supply, influencing future investment decisions.
How has the coworking space market evolved in 2024?
The monthly lease for coworking spaces in District 1 of HCMC rose to $344 per person, marking a 5% increase year-on-year amid growing demand for flexible work environments.
What is the impact of new land price lists in Vietnam?
The new land price list, effective from August 1, 2024, is expected to increase construction costs, potentially causing housing prices to rise by 15-20%.
What factors contributed to the rise in land sales searches?
In the first half of 2024, searches for land sales grew by 45% year-on-year due to increased investor interest and perceived value in land as a stable asset class.
How has the perception of property prices changed among Hanoi residents?
A survey indicated that nearly half of Hanoi residents believe apartment prices are overpriced, leading many to lower their expectations or reconsider purchases.
What is the significance of the Global Real Estate Transparency Index for Vietnam?
Vietnam ranked 49th out of 89 countries in JLL’s 2024 index, making it the least transparent property market in Southeast Asia, affecting foreign investment.
How is the market for high-end retail properties performing?
Rents for high-end retail properties in HCMC have surged due to limited supply, reflecting a growing demand for premium retail spaces in prime locations.
What role do financial institutions play in the Vietnamese real estate market?
High interest rates from banks are discouraging potential buyers, with many opting to delay purchases, affecting the overall dynamics of the property market.
How has the flexible workspace supply changed in HCMC?
In HCMC, the supply of shared offices increased by about 20% in 2024, with 120 flexible work centers managed by 28 service providers, responding to rising demand.
What is the overall revenue of real estate companies in HCMC in 2024?
Real estate companies in HCMC reported revenues of VND 173 trillion (US$7 billion) in the first eight months of 2024, showing a 6.1% year-on-year growth.
How are short-term rental prices evolving in HCMC?
Short-term rents for serviced apartments in HCMC increased by 10-15% in the third quarter of 2024 compared to the previous year, reflecting strong demand in the rental market.
What are the expected impacts of high construction costs on housing prices?
Due to rising construction costs linked to new land price lists, housing prices in Vietnam are anticipated to increase by 15-20%, affecting affordability.
What challenges does the real estate sector face from regulatory changes?
Regulatory changes, particularly in land laws, pose challenges for real estate development, potentially impacting project timelines and costs in 2024.
What is the trend in property sales among various regions in Vietnam?
Property sales in regions like the North and Central areas reflect different market dynamics, with substantial growth seen in land transactions compared to residential properties.
How are developers responding to the demand for luxury properties?
Developers in Vietnam are increasingly focusing on luxury and premium segments, catering to high-income buyers seeking quality and exclusivity in urban living.
What are the demographic factors influencing the real estate market?
Urbanization and population growth are driving demand for residential properties, particularly in cities like Ho Chi Minh City and Hanoi, influencing market dynamics.
How does the economic outlook affect the real estate market in Vietnam?
The overall economic outlook for Vietnam remains positive, with growth prospects driving investment in real estate, particularly in urban areas experiencing rapid development.
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