All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Ho Chi Minh City's property market is included in our pack
Thinking of investing in real estate in Ho Chi Minh City? You're not alone!
Many people are captivated by Ho Chi Minh City's bustling atmosphere and dream of owning a stylish apartment or a modern condo there.
Would it be a profitable investment, though? Are property prices increasing in Ho Chi Minh City? Is it expensive? Is it more profitable to buy in District 1 or District 2? What about the taxes? What rental yields should I expect?
We've figured it out for you.
The BambooRoutes team has done their homework on this market. As a matter of fact, we've compiled all our findings in one pack. Get it now.
In the lines below, we'll share useful information and some practical tips.
How is the real estate market in Ho Chi Minh City?
Is the property market doing well or poorly? People disagree. Instead of listening to opinions, we prefer to look at data and stats to find the real answers.
Types of properties
In Ho Chi Minh City, you can find a variety of properties for sale, including apartments, houses, condominiums, and commercial spaces.
Apartments are commonly available in high-rise buildings and offer different sizes and amenities. Houses come in various styles, from traditional to modern, often with a small garden or yard. Condominiums provide a mix of apartment living with shared facilities like pools and gyms.
Commercial properties encompass shops, offices, and retail spaces, catering to business needs.
Whether you're looking for a cozy home, a convenient apartment, or a business space, Ho Chi Minh City offers a diverse range of properties to suit different preferences and requirements.
Should you buy or rent?
(In case you want it for yourself, not for rental purposes)
If Ho Chi Minh City, the bustling metropolis of Vietnam, has caught your interest as a place to settle, you might be thinking about the pros and cons of buying versus renting a property.
Without a doubt, you should buy if you want to acquire equity and have more control over the property for the long-term.
Our advice? Use the property price-to-rent ratio as your decision-making compass. You can use this number to see how long it will take to recover the property's cost through rental earnings.
According to Numbeo, the property price-to-rent ratio in Ho Chi Minh City is around 36.55, which is significantly above the world average.
It indicates that buying a property is more expensive in the short term compared to renting. However, buying can still be a viable option if you plan to live in Ho Chi Minh City for an extended period or if you think property values will increase.
Property prices in Ho Chi Minh City
On average, according to the last data from General Statistics Office (GSO), purchasing a property in Ho Chi Minh City would cost you around $3,200 per square meter.
It's evident that there are significant disparities. An apartment in District 1 may have a different price per square meter than a house in District 7. We actually give you a more detailed breakdown in our pack for buying property in Ho Chi Minh City and in Vietnam.
To give you some context, it means that, instead of buying an apartment in Singapore, you can get 4 properties in Ho Chi Minh City.
Also, housing prices in Ho Chi Minh City are 44% cheaper than in Bangkok.
The most expensive neighbourhoods in Ho Chi Minh City are probably District 1 and District 2, while the cheapest are likely District 10, 11 or 12.
Trends
First and foremost, it's essential to recognize that Vietnam is now a reliable and stable choice for investors. The last Fragile State Index that has been reported for this place is 60.9.
Don't overlook this while weighing the pros and cons of buying a property in Ho Chi Minh City.
If we look at more data, we can see that, according to the IMF’s forecasts, Vietnam's economy is expected to soar by 29.7% in the coming 5 years, resulting in an average GDP growth rate of 5.9%.
If you want to invest in real estate in Ho Chi Minh City it's a good thing because a growing economy can mean a higher influx of foreign investments, attracting international buyers and investors interested in the real estate market, further stimulating demand.
Also, in Vietnam, the average GDP per capita has changed by 18.3% over the last 5 years. It ranks the country in the top 10 for the growth of this indicator.
These are positive signals showing that property prices in Ho Chi Minh City might increase in 2024 and during the coming years.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Vietnam right now.
Buying property in Ho Chi Minh City
Buying real estate in Ho Chi Minh City can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Ho Chi Minh City and in Vietnam.
Buying process
In our pack, we've explained the entire buying process in detail. We've provided clear information about prices and yields based on the area, guidance on negotiating the price, and options for securing a mortgage.
Now, we're offering you a simpler version, step-by-step, to make it easier for you to grasp.
This is the step-by-step process to purchase a property in Ho Chi Minh City:
- Research property market and regulations specific to Ho Chi Minh City.
- Engage a reliable real estate agent familiar with local laws.
- Select properties meeting Vietnam's foreign ownership criteria.
- Conduct property inspections in person or through a representative.
- Negotiate the price and terms with the seller.
- Sign a Letter of Intent (LOI) and pay a deposit (usually 5%-10% of the property value).
- Hire a Vietnamese lawyer to review the contract and handle legal matters.
- Complete due diligence, verifying property ownership, land use rights, and legal documentation.
- Sign the Sales & Purchase Agreement (SPA) and pay the remaining balance.
- Obtain a Land Use Right Certificate (LURC) from the Department of Natural Resources and Environment.
- Register the property transaction at the local land registration office.
- Complete the transfer of ownership and receive the new Certificate of Ownership (also known as the Pink Book).
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Vietnam.
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Where to find a property
Here are some websites where you can find properties in Saigon:
- Property Launch - Property Launch is Vietnam's leading real estate finder, offering a wide range of properties for rent and sale in Saigon.
- Dot Property - Vietnam Real Estate is a comprehensive property portal in Vietnam, offering listings for buying, renting, and selling properties.
- Livinghanoi - Hanoi Properties is a trusted real estate platform in Hanoi, Vietnam, offering a wide range of properties including villas, houses, apartments, and condominiums.
- FazWaz - FazWaz.vn is Vietnam's leading real estate marketplace, providing a platform to buy, rent, and sell property across various regions in Vietnam.
- Savills - Savills is a global real estate services provider with expertise in residential and commercial properties.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Vietnam.
What you can get
As mentioned before, the average price per sqm in Ho Chi Minh City is $3,200. A 1-bedroom property with an area of 60 square meters would cost approximately $192,000, while a 2-bedroom property with an area of 85 square meters would cost approximately $272,000.
However, prices will differ based on the attributes of the property and its specific location.
Prime property locations in Ho Chi Minh City tend to come with higher price points. A house in District 1 might be about $600,000, and an apartment in District 3 could cost around $340,000.
Some spots will be friendlier to your wallet. You may find a residence in District 12 for $320,000, or a residence in Tan Phu District priced only at $200,000.
Find a more detailed price list in our full pack for buying property in Vietnam.
Common mistakes
Here are the main pitfalls specific to buying property in Ho Chi Minh City, Vietnam:
- Land tenure issues due to the unique system of land ownership and leasing, leading to uncertain property rights.
- Complex regulations on foreign property ownership, requiring thorough understanding and compliance for non-citizens.
- The risk of investing in properties with unclear or unapproved red book (land ownership certificate) status.
- Unanticipated challenges in repatriating profits from property sales for foreign investors.
- Noise and pollution concerns arising from the city's bustling traffic and industrial activities, affecting property desirability.
- Flooding and drainage problems in certain areas, impacting the property's safety and value during the rainy season.
- Ongoing urban development projects that may disrupt living conditions and neighborhood dynamics.
- Potential language barriers and cultural differences when dealing with local real estate agents and developers.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Vietnam Property Pack
Living in Ho Chi Minh City
Ho Chi Minh City is a vibrant, growing city with plenty of opportunities for property investment.
Cost of living
The cost of living in Ho Chi Minh City is relatively low compared to other major cities in the world. Living expenses such as rent, food, and transportation can be quite affordable, making it an attractive destination for expats.
Here are some examples to better understand the cost of living in Ho Chi Minh City, Vietnam:
- Rent for a one-bedroom apartment in Thao Dien, an expat-friendly neighborhood: $800 per month.
- A meal at a local restaurant with "Bánh Xèo," a Vietnamese savory pancake: $5.
- Monthly Saigon public transportation card for buses and metro: $20.
- Utilities (electricity, water) for a small apartment in District 3: $60 per month.
- A bottle of "Trà đá" (Vietnamese iced tea): $0.50.
- Entrance fee to the Independence Palace: $2.
- Monthly membership at a popular fitness center like California Fitness & Yoga: $50.
- A cup of "Cà phê trứng" (Vietnamese egg coffee) at a local café: $2.
Neighbourhoods
We want to show information in a way that is easy to understand and pleasant to read. So, we made a table that summarizes the different areas in Ho Chi Minh City. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
District 1 | District 1 is the city center and offers a vibrant urban lifestyle with numerous entertainment and dining options. | Central location, diverse cultural attractions, and a lively nightlife. | High cost of living, heavy traffic, and limited green spaces. |
Phu Nhuan District | Phu Nhuan District is a residential area close to the airport, with a mix of local and expat communities. | Convenient location, relatively affordable housing, and a good selection of local markets. | Limited international schools, crowded streets during rush hours. |
Binh Thanh District | Binh Thanh District is an up-and-coming neighborhood with a growing number of modern apartments and riverside developments. | Scenic river views, emerging trendy cafes and restaurants, and proximity to District 1. | Some areas still under development, traffic congestion in certain parts. |
Tan Binh District | Tan Binh District is a densely populated area known for its local markets, eateries, and cultural sites. | Affordable housing, well-established community, and access to Tan Son Nhat International Airport. | Heavy traffic during peak hours, limited green spaces. |
Go Vap District | Go Vap District is a diverse neighborhood with a mix of residential areas and industrial zones. | Affordable housing options, proximity to the airport, and various shopping centers. | Industrial areas may cause air and noise pollution, traffic congestion. |
Thu Duc City | Thu Duc City is an emerging area with a focus on education and technology, home to several universities and research institutes. | Hub for education and innovation, modern infrastructure, and a growing tech scene. | Some parts still under development, limited historical and cultural attractions. |
District 3 | District 3 is a lively area with a mix of residential and commercial spaces, known for its colonial architecture and trendy cafes. | Unique charm with historical buildings, diverse culinary scene, and easy access to central districts. | Lack of green spaces, limited parking options. |
Thu Thiem | Thu Thiem is a developing area across the river from District 1, planned to be a modern financial and commercial hub. | Potential for future growth, modern infrastructure, and scenic riverfront views. | Still under construction, limited public transportation options. |
Life in Ho Chi Minh City
Ho Chi Minh City is the economic hub of Vietnam and has seen rapid growth in recent years. It is home to a large number of foreign-invested companies and is the largest contributor to Vietnam's GDP.
Referring to IMF data, the GDP of Ho Chi Minh City contributes to almost 15% of Vietnam's GDP. Investing in property in a city with a strong economy is a good idea because there are more jobs, lots of people want to live there, and property prices tend to stay steady.
What expats usually like the most in Ho Chi Minh City is the vibrant nightlife, with numerous bars and clubs offering a wide variety of entertainment. They also appreciate the city's delicious and diverse culinary scene, with many local specialties and international cuisines to choose from.
However, the crime rate index of Ho Chi Minh City, which is around 53, could be better. It's something to consider if you want to live there. Common crimes in Ho Chi Minh City include pickpocketing, fraud, human trafficking, drug dealing, and theft, which mainly affect the local population and not expats.
A good point for a property investor - Ho Chi Minh City has a rapid transit system, including a metro system, buses, and water buses.
Access to healthcare in Ho Chi Minh City is very good, with a Healthcare Index of 60. Good healthcare facilities is a positive indicator in a real estate market.
Finally, it is worth noting that the Ton Duc Thang University ranks among the top 500 universities in the world.
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Renting out in Ho Chi Minh City
If you're interested in buying property not to live in, but to rent out and generate income, this section is for you.
Long-term
Tenant Profiles in Ho Chi Minh City
According to the data reported by Wikipedia, the home ownership rate in Vietnam is 90%, which is very high.
But things are a bit different in Ho Chi Minh City. There are lots of foreigners and young workers there, so there are plenty of people looking to rent homes.
If you decide to buy and rent out to long-term tenants, you should target expatriates, local professionals, and students. Short-term tenants may include tourists, business travelers, and digital nomads.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in District 1 | Expats, young professionals | City center living, nightlife | $800 - $2000 |
House in District 2 | Expat families | Quiet suburban living, international schools | $1500 - $4000 |
Studio in Binh Thanh District | Singles, young couples | Convenient location, modern amenities | $500 - $1200 |
Condo in Phu My Hung | Families, expats | International community, green spaces | $1000 - $3000 |
Apartment in Tan Binh District | Students, budget-conscious renters | Near universities, affordable options | $300 - $800 |
Studio in District 3 | Young professionals, artists | Creative neighborhood, cultural attractions | $600 - $1500 |
Apartment in District 7 | Families, expats | Modern facilities, nearby schools | $900 - $2500 |
Rental yields
As of today, rental yields in Ho Chi Minh City are floating around 2 or 3%. It's low. A good rental yield is typically considered to be around 7% or higher.
Properties located in the city center, such as those near major universities and business districts, tend to give the best rental yields in Ho Chi Minh City due to the high demand for housing in these areas. Additionally, properties with multiple bedrooms and modern amenities can also yield higher returns due to the premium that tenants are willing to pay for quality housing.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Short-term
You could also decide to rent short-term to business travelers, digital nomads, or tourists visiting Ho Chi Minh City. Local residents may also be interested in renting short-term for a variety of reasons.
If you decide to go with that option, look for properties in District 1 or District 3, which are the most popular tourist districts in Ho Chi Minh City. District 2 is also an attractive option for short-term rental investments.
You will have some competition though - there are around 19,000 Airbnb listings in Ho Chi Minh City. The average daily rate stands around $55.
You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Ho Chi Minh City can make around $500 per month. Also, the average occupancy rate is estimated at 43%.
Is it worth buying real estate in Ho Chi Minh City then?
Certainly, when it comes to buying property in Ho Chi Minh City, it's a wise choice for individuals planning on long-term residence and those looking to benefit from the city's growing economy.
If you intend to make this bustling metropolis your permanent home, purchasing property allows you to build equity and gain more control over your living space.
Despite the initial costs, the property price-to-rent ratio suggests that buying is a more cost-effective option in the long run. Moreover, Ho Chi Minh City's promising economic outlook, with substantial GDP growth and increased foreign investments, makes real estate investment an attractive prospect.
A stable and reliable economic environment can potentially lead to property value appreciation, making it a potentially profitable venture.
However, for short-term residents or those seeking high rental yields, buying property in Ho Chi Minh City may not be the best financial decision.
Renting is often a more cost-effective option for those planning to stay for a limited time, as the transaction costs associated with buying and selling properties can outweigh any potential benefits. Additionally, current rental yields in the city are relatively low compared to the global average, making it less attractive for individuals primarily seeking rental income.
It's essential to carefully consider your goals, tolerance for potential challenges, and market conditions before deciding to invest in property in Ho Chi Minh City. While it can be a valuable long-term investment, it may not align with the needs and expectations of every potential buyer.
Make sure you understand the real estate market in Ho Chi Minh City
Don't rush into buying the wrong property in Vietnam. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.