Writing about real estate prices is not an easy task during a pandemic as no one knows for how long it will last and what the impact will be. We get contacted by many readers who want to understand how real estate prices have changed in various cities in Vietnam.
It’s crucial to understand what has happened in the past and what one can expect in the short and long-term. In this article, we review real estate prices in the most popular cities in Vietnam.
Ho Chi Minh City Real Estate Prices
Ho Chi Minh City has by no doubt the highest real estate prices in Vietnam. It’s no strange as it serves as the country’s business hub and were most investors and expats look for investment opportunities.
In the past years, real estate prices have increased with double digits in Ho Chi Minh. For example in the second quarter of 2019, the average price for apartments was USD 2,009 per square meter, equal to an increase of 21.6% compared to the previous year.
With that said, you can still find upcoming areas where we will see much appreciations in the coming years, like District 9, District 4, District 5, and District 10, even if these districts have fewer projects in general.
Due to the spread of COVID-19, real estate markets literally all over the world have been affected badly. Ho Chi Minh is no exception and prices declined to USD 2,453 per square meter, which is a 15% decrease compared to the last months of 2019. Some analysts claim that prices will drop even further.
This will undoubtedly leave much room for investors who look for low price points.
Da Nang Real Estate Prices
Da Nang has evolved into becoming one of the by far most popular real estate investment destinations in Vietnam. There are plenty of reasons why some investors prefer to go for Da Nang instead of Ho Chi Minh or Hanoi when buying real estate in Vietnam.
Nature: Da Nang isn’t just a hub in Vietnam, but a resort destination. Being located a 15-minute drive away from the UNESCO World Heritage, Hoi An, jungles, mountains, hills, and white beaches, Da Nang offers a comparatively more relaxed atmosphere than Ho Chi Minh.
Real estate prices: Despite having fewer projects than Ho Chi Minh, real estate prices are cheaper compared to Ho Chi Minh. This also makes Da Nang a more attractive investment destination for many buyers.
Geographic location: Da Nang is right in between Hanoi and Ho Chi Minh and close to well-known cities and towns like Hoi An and Hue. Besides, while it takes around 2 hours and 40 minutes to fly from Hong Kong to Ho Chi Minh, you’ll reach Da Nang in as little as 1 hour and 50 minutes.
So how much can I expect to pay for a unit in Da Nang? Well, prices vary. For those who want to invest in a beachfront villa, the price will be comparatively high to a smaller condominium unit, for example.
According to Fazwaz, the average price is VND 41.6 million (USD 1,793) per square meter in Da Nang. By comparison, the average price per square meter in Ho Chi Minh is VND 125 million (USD 5,387) according to Fazwaz.
Both rents and property prices have decreased in Da Nang since the pandemic started and some claim that we will see more reductions.
Hanoi Real Estate Prices
Hanoi is the capital and its population is almost as big as Ho Chi Minh City’s. That said, the city is famous for being a cultural center, with a strong heritage, and where you can find most embassies instead of shiny skyscrapers.
Thus, it’s not as commercial as Ho Chi Minh even if you can find much activity in the heavy industry, automotive industry, and more.
Prices are more modest in Hanoi compared to Ho Chi Minh, so is the price increases and interest from foreign buyers.
The average sales price of apartments was just a bit more than USD 1,400 in Hanoi and almost 30% lower than that of Ho Chi Minh a couple of years ago.
We’ve seen “modest” year-on-year price increases at around 7%. Yet, this is far from Ho Chi Minh where prices have increased more than 20% year-on-year.
According to Fazwaz, the median property price is VND 107 million (USD 4,617) per square meter in Hanoi. As Ho Chi Minh has become more ‘crowded’ and the government clamped down on new projects there, we have seen a greater interest in Hanoi.