HCMC house prices were up by 19.44% during the year to Q2 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 strongly by 19.44% y-o-y in Q2 2022, in inflation-adjusted terms. It was in stark contrast from a y-o-y decline of 2.76% in Q2 2021. Quarter-on-quarter, house prices increased 7.17% in Q2 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%

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 7.72% in Q2 2022 from a year earlier, up from the previous quarter’s 5.05% expansion, primarily driven by strong manufacturing and construction sectors, as well as recovering household consumption, according to the General Statistics Office (GSO). 

The economy is projected to expand by 6% 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.