Trend: Nominal house prices down by less than 1% in Hanoi during the year to Q3 2018, but up 3.2% in HCMC
In Hanoi, the capital, existing apartment prices fell by less than 1% during the year to Q3 2018 after falling by 3.3% the previous quarter, according to Savills. Quarter-on-quarter, prices also declined less than 1% during the latest quarter.
In Ho Chi Minh City, on the other hand, the average price of existing apartments increased 3.2% in Q3 2018 from a year earlier, almost at par from the previous quarter’s 3.1% growth, according to Savills. In a quarterly basis, prices rose by 1% during the latest quarter.
Analysis: Outlook for Vietnam’s property market remains bullish
The outlook for the Vietnamese housing market is positive due to continued strong economic growth, rapid urbanization growth, and the construction of several mega projects in major cities. In 2017, the Vietnamese economy grew by a robust 6.81%, up from last year’s 6.21% growth, based on preliminary estimates from the General Statistics Office of Vietnam.
Rents, rental yields: yields data is unavailable
The average rent for apartments in HCMC was $1,214.
|Vietnam: city centre apartment, buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
|Ho Chi Minh City||n.a.||$ 1,214||n.a.|
Recent news: The Vietnamese economy grew by 6.88% y-o-y in Q3 2018, after expanding by 6.73% in Q2 and 7.45% in Q1, primarily driven by strong growth in services, industry and construction sectors. Vietnam is expected to continue its stellar growth in the coming years, with projected GDP growth rates of 6.6% this year and by another 6.5% in 2019, according to the IMF.