Trend: House prices rose by a miniscule 1.13% y-o-y in Q1 2017
In Ho Chi Minh City, house prices increased by just 1.13% during the year to Q1 2017, from y-o-y rises of 2.89% in Q4 2016, 4.39% in Q3 2016, 3.58% in Q2 2016 and 1.93% in Q1 2016. Quarter-on-quarter, house prices in the city dropped 1.06% in Q1 2017, the second consecutive quarter of quarterly house price fall.
Analysis: Outlook for Vietnam’s property market remains bullish
Despite the unimpressive house price increase in early 2017, outlook for the Vietnamese housing market remains positive due to continued strong economic growth, rapid urbanization growth, and the construction of several mega projects in major cities. Vietnam is expected to continue its stellar growth in the coming years, with project GDP growth rates of 6.5% this year and by another 6.3% in 2018, according to the IMF.
Rents, rental yields
The average rent for apartments in HCMC was $1,214.
|Vietnam: city centre apartment, buying price, monthly rent (120 sq.m.)|
|Buying price||Rent per month||Yield|
|Ho Chin Minh City||n.a.||$1,214||n.a.|
Recent news: Vietnam’s economy expanded by 6.17% in Q2 2017 from a year earlier, up from the first quarter’s 5.15% growth and the second highest expansion in five years, thanks to the strong turnaround in the agriculture-forestry and fisheries sectors, according to the country’s General Statistics Office.