Nominal house prices up 23.8% in HCMC, 6.5% in Hanoi during the year to Q3 2019

In Ho Chi Minh City, apartment prices surged 23.8% in Q3 2019 from a year earlier, to an average of US$2,067 per sq. m, according to Jones Lang La Salle Vietnam. Likewise in Hanoi, the capital, the average price of apartments rose by 6.5% y-o-y to US$1,473 per sq. m. in Q3 2019.

 

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 2018, the Vietnamese economy grew by a robust 7.1%, from expansions of 6.8% in 2017 and 6.2% in 2016. 

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

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

Cambodia: typical city centre apartment buying price, monthly rent (120 sq. m)
	Buying price	Rate per month	Yield
Hanoi	$1,500	$1,315	5.50%
Ho Chi Minh City	$2,100	$1,214	4.45%

Recent news: The Vietnamese economy grew by 7.31% y-o-y in Q3 2019, following annual expansions of 6.73% in Q2 2019, 6.79% in Q1 2019 and 7.31% in Q4 2018, according to the General Statistics Office (GSO). Vietnam is expected to continue its stellar growth in the coming years, with projected annual GDP growth rate of 6.5% both this year and in 2020, according to the IMF.