Vietnam is known to open up to many property investors since 2015. The country has significantly experienced fast real estate growth since then. Property buyers from Mainland China, Hong Kong, Korea, and Singapore see Vietnam as a country with lucrative markets having high ROIs. If you are planning to purchase a property in Vietnam, you need to learn about property prices and the things you can expect from the real estate market.
How Real Estate in Vietnam Performed in the Past Years
Regardless of what city in Vietnam you wanted to buy property from, it pays to know how the real estate in Vietnam performs in the past years. The real estate market has essentially emerged as a fast-growing and thriving real estate market in Southeast Asia.
Despite suffering from a housing bust in the year 2009, the market recovered after four years and has seen fast and constant growth.
The following are the major reasons why the Vietnam real estate market has quickly developed in recent years:
- Eased ownership regulations for foreigners since 2015
- Stronger GDP growth
- Affordable real estate properties available
- Rising interests among foreign buyers
- Mortgage rate decline
- Quick developing coastal cities which is mainly because of tourism
Vietnam along with its major cities is a quickly-emerging economy which has been growing with more than 6% yearly since 2001.
Property Prices in Ho Chi Minch City
The average price for every square meter in the city is about 18% of that in Singapore and only about 14% of the average price for every square meter in Hong Kong. Vietnam will, therefore, continue being the lucrative spot for foreign or overseas investors. For Ho Chi Minch City real estate, prices are just 8% of prices in Hong Kong in an average. Well-known real estate companies predict the average yearly price increase of 8 to 10% for the residential properties in the coming years.
Property Prices in Hanoi
The capital of Vietnam, Hanoi real estate market has become one of the most favored destinations among foreign investors searching for the property market as the prices remain of best value. This is despite the gradual recovery after a disastrous slump that occurred and affected the real estate market in 2007.
These days, quality residential properties mainly in the city center of Hanoi are usually sold at HK$1,500 or US$191.32 for every square foot which is half of the level of Bangkok. Prices of top quality properties or housing can catch up with the neighboring cities amid gradual competition of basic infrastructures like the airport and railway expansions since more and more foreign investors and corporations bring higher investments into the market.
Where Should You Purchase Properties in Vietnam?
Almost all of the major cities have witnessed stable price increase in the previous years. One of the top performers is Ho Chi Minch City, but the coastal cities such as Nha Trang and Da Nang instantly turn to famous destinations. Hanoi Vietnam can be your ideal investment option as well.