HCMC house prices were up by 22.35% during the year to Q3 2022
Vietnam's property market is gathering pace, after a sharp slowdown in recent years due to the COVID-19 pandemic. Apartment prices in Ho Chi Minh City rose by a whopping 22.35% in Q3 2022 from a year earlier, in inflation-adjusted terms. It was a sharp acceleration from year-on-year increases of 19.44% in Q2 2022, 15.39% in Q1 2022, 8.42% in Q4 2021 and 8.5% in Q3 2021. Quarter-on-quarter, house prices increased 6.63% in Q3 2022.
Demand and supply recovering
Vietnam opened up to foreign homebuyers in 2015 and has expanded strongly since. Majority of buyers come from Hong Kong, Mainland China, Singapore, and South Korea. Unfortunately, Vietnam’s housing market has been badly hit by the COVID-19 pandemic in 2020 – with house prices and rents falling by double-digit figures. The housing market is now strengthening again, as market confidence and demand are slowly improving. There are more than 20,000 units launched in 2021, according to JLL Vietnam.
Rents, rental yields: yields are moderately good at 5%
|Vietnam: city centre apartment buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
|Ho Chi Minh City||$252,000||$1,214||4.45%|
Recent news: The Vietnamese economy grew by 13.67% in Q3 2022 from a year earlier, up from year-on-year expansions of 7.72% in Q2 and 5.05% in Q1, according to the General Statistics Office (GSO). The strong growth, which is considered as the strongest pace at least since 2000, was mainly driven by the recovery in production and business activities, aided by the government’s socio-economic development programs.
Vietnam’s economy is projected to expand strongly by 7% this year, according to the forecast released by the International Monetary Fund (IMF), following modest growth of 2.58% in 2021 and 2.91% in 2020.