Ho Chi Minh City is arguably the most developed city in Vietnam and the financial and economic center of Vietnam. Especially in recent years, Vietnam’s GDP has almost doubled, and for friends who want to understand the overseas real estate market, the trend of housing prices in Ho Chi Minh City is undoubtedly an important information that must be paid attention to. Next, this article will introduce you to the general situation of housing prices in Ho Chi Minh City.
Why can Ho Chi Minh City become the economic center of Vietnam?
There are many reasons why Ho Chi Minh City has become the economic center of Vietnam. Today we explain from a special perspective: why Vietnam must develop its economy in Ho Chi Minh City.
In 1979, China launched a border war against Vietnam, and in less than a month, infrastructure and industrial facilities in northern Vietnam were severely damaged. This made Vietnam more aware of the instability of the security environment in the north, and also affected the economic layout thinking at that time to a certain extent.
However, the reason why Ho Chi Minh City has gradually grown into the core of the national economy is not only because of the war factor. Deeper reasons include:
During the period of French colonization and the US military presence, Saigon (now Ho Chi Minh City) had accumulated a strong foundation in commerce and services. With the geographical advantage of being located in the Mekong Delta, Ho Chi Minh City has excellent ports and is close to the main shipping routes in the South China Sea, so it naturally has convenient conditions for foreign trade. At the same time, the economic structure of the south is relatively more open, making it easier to attract foreign investment. Since the implementation of the “innovation and opening up” policy in 1986, Ho Chi Minh City has become the main gateway for foreign investment to enter Vietnam, showing continued economic vitality.
Therefore, the war of 1979 did make Vietnam pay more attention to the security and development of the southern economy, but Ho Chi Minh City became an economic center as a result of multiple historical, geographical and industrial advantages.
Basic information on housing prices in Ho Chi Minh City
Ho Chi Minh City, as Vietnam’s economic center and populous city, has seen rapid growth in its real estate market in recent years. Whether it’s new apartments, villas, or office buildings in the city center, housing prices are steadily rising.
Compared with China’s first-tier cities, Ho Chi Minh City’s housing prices are still relatively low, but the housing burden is still not light in terms of the income level of local residents.
The following is a list of house prices and rental yields in Ho Chi Minh City and the surrounding major areas, including the price per square meter (VND and USD), typical project reference prices, and rental yields. By comparing housing prices and ROI in various districts, readers can more intuitively understand the real estate market conditions in different areas, thereby providing reference for home purchase or investment decisions.
| region | Price per square meter (VND) | Price per square meter (USD) | Rental yield | Typical Project Price (USD) |
|---|---|---|---|---|
| District 1 | VND 82,000,000 | ~$3,230 | 1.87% – 5.03% | Vinhomes Central Park: ~$109,589 |
| Bình Thạnh | VND 77,100,000 | ~$2,949 | 3.52% | Saigon Pearl: ~$164,851 |
| Phú Nhuận | VND 76,000,000 | ~$2,900 | 3.52% | Vinhomes Golden River Ba Son: ~$193,376 |
| Tan Binh County (Quận 7) | VND 75,000,000 | ~$2,880 | 3.52% | Hado Centrosa Garden: ~$80,879 |
| District 9 (Quận 9) | VND 70,000,000 | ~$2,690 | 3.52% | The Privia: ~$95,045 |
| District 12 (Quận 12) | VND 65,000,000 | ~$2,500 | 3.52% | Kingdom 101: ~$39,826 |
| Binh Duong Province (Bình Dương) | VND 60,000,000 | ~$2,310 | 3.52% | Xi Grand Court: ~$63,192 |
| Long An | VND 55,000,000 | ~$2,120 | 3.52% | Akari City Nam Long: ~$73,449 |
| Bình Phước | VND 50,000,000 | ~$1,850 | 3.52% | Terra Royal: ~$34,358 |
Several locations in Ho Chi Minh City suitable for investment
As an investor following the real estate market in Ho Chi Minh City, I find that the difference in investment potential and returns between different regions is very noticeable. District 1 is the first area I pay attention to, it is located in the core of the city center, with a high concentration of business and finance, convenient transportation, and complete living facilities.
Although house prices are the highest in the city, I see rental yields of 1.8%–5.0% here, based on various market data and calculations. Specifically, I refer to the following aspects:
- Market rent quotes: Through real estate agency websites and developer information in various districts of Ho Chi Minh City, I collected the average rent levels for high-end apartments in the city center.
- Actual transaction case: The transaction price and rental income of District One apartments in the past few years are analyzed, and the possible rental return range is calculated based on the rent differences of different house types, areas and floors.
- Real Estate Research Reports: Referring to the Ho Chi Minh City real estate market reports published by well-known institutions such as Savills and CBRE, they provide professional data on housing price trends, rental levels, and rental yields in various districts.
- Rental yield calculation formula: Rental yield = annual rental income ÷ 100% of the total property price ×. For example, if an apartment costs $100,000 and generates about $3,000 in rental income per year, the rental yield would be around 3%.
Based on these data and methodologies, I conclude that rental yields in District 1 are between 1.8% and 5.0%, and combined with regional appreciation potential, I judge that it is a very suitable place for high-end investments.
I also paid special attention to Bình Thạnh because of its proximity to the city center, easy transportation, and a large number of new residential and office buildings in the vicinity.
I think the rental yield here is around 3.5%, which is good value for money and a good investment for a solid investment.
In contrast, I was impressed by the living environment in Phú Nhuận, with well-established living facilities and excellent education, shopping and medical facilities. If I were considering juggling both occupancy and rental, this would be a good choice, with a rental yield of around 3.5%.
As for Tan Binh district (Quận 7), I think the modern community is concentrated, well-planned, with complete living and commercial facilities, relatively reasonable prices, low long-term investment risk, and rental yields are also at 3.5%.
Quận 9 makes me feel very potential, this is an emerging development zone with a gradual improvement of industrial parks and transportation construction in the future, a low initial investment threshold, and a rental yield of about 3.5%, but I think there is a lot of room for long-term value-added.
On the whole, I personally believe that the downtown area is suitable for the layout of high-end assets and stable appreciation; Emerging areas are more suitable for investment strategies that pursue cost-effectiveness and long-term appreciation. Which area to choose depends on the individual’s investment goals and risk appetite.
A few things to pay attention to when buying a house in Ho Chi Minh City
To buy a property in Vietnam, you first need to understand the eligibility to buy a house. Foreigners can buy apartments, but the land is owned by the state, and the house usually exists in the form of long-term use rights or 50-year titles, and generally cannot buy single-family villas or land. Therefore, you must confirm that you comply with local laws before buying a house.
Next, you need to choose the right property and area based on your budget, investment goals, or owner-occupation needs, focusing on transportation convenience, living facilities, appreciation potential, and rental income. Site visits or obtaining listings through reliable agents are essential steps.
After confirming the listing, the buyer and seller usually sign a letter of intent (Booking/Reservation), pay a deposit of 1%~5% to lock in the property, and negotiate the terms of the contract, payment method and delivery time.
Subsequently, sign a formal Sale & Purchase Agreement, which should specify the total price of the house, payment method, property right type, delivery time, and developer responsibilities. It is best for foreign buyers to ask a lawyer to review the contract and pay a down payment (about 10%~30% of the total house price) after signing.
After the contract is signed, the buyer needs to apply for a Certificate of Ownership / Red Book from the Vietnamese land management department, and after obtaining the certificate, he can legally own the right to use the house, and the title certificate will indicate that the land is owned by the state and the period of the right to use the house. Relevant taxes and fees are also required during the purchase process, including stamp duty (about 0.5%~2% of the house price), value-added tax (about 10% for new houses, usually exempt for second-hand houses), and personal income tax that may affect the cost.
After the developer completes the construction of the house, the buyer needs to inspect the quality and facilities of the house to ensure that it meets the contract, and then pay the remaining balance and handle the property handover. If the house is purchased for investment and rental, the property management company can be entrusted to be responsible for leasing, maintenance and rent collection, and at the same time, it is necessary to declare rental income and pay taxes and fees in accordance with regulations. Overall, the property purchase process in Vietnam is relatively standardized, but it involves property rights, contracts and tax issues, and foreign buyers need to operate carefully to ensure legal compliance.
Some of our views on property investment in Ho Chi Minh City
From the perspective of investment returns, the real estate payback cycle in different regions is significantly different. Taking District 1 as an example, a 50-square-meter apartment costs about $160,000, with an average rental yield of about $4,800 per year at an average rental yield of 3%, and a payback cycle of about 33 years. In Xinping County, the total price of apartments of the same size is about $144,000, the annual rental yield is about 3.5%, and the payback cycle is about 28.5 years. It can be seen that the housing prices in the core area are high and the payback cycle is long, but the long-term appreciation potential is great; Emerging areas have relatively low housing prices and short payback cycles, making them more suitable for investors who pursue cash flow.
Of course, investing in Ho Chi Minh City property also carries risks, including market price fluctuations, unstable rental income, legal and property rights restrictions, foreign exchange rate changes, and delays or quality issues with developers’ delivery. Before making an investment decision, you can use the following formula to assess your payback cycle and potential returns:
Annual Rental Income = Total Property Price × Rental Yield (%)
By substituting housing prices and rental yields in different areas, you can intuitively calculate the payback cycle, so as to combine appreciation potential and risk to develop a more reasonable investment strategy.