Authored by the expert who managed and guided the team behind the Vietnam Property Pack
Yes, the analysis of Ho Chi Minh City's property market is included in our pack
Why is Ho Chi Minh City emerging as a prime destination for property investment in 2025? Is it the impressive capital appreciation, the vibrant economic growth, or the competitive pricing compared to other Asian markets? What are the key benefits for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Ho Chi Minh City's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Ho Chi Minh City's rapid urbanization means more people need homes
Ho Chi Minh City is growing fast, and this boom is driving up the need for more homes.
With a population of over 9.5 million in 2024, the city is bustling with life and opportunity. By 2030, it's expected to swell to over 11 million, as people flock here for jobs and a vibrant lifestyle. This influx naturally means more people are looking for places to live.
As a major commercial and cultural center, Ho Chi Minh City attracts a wide range of buyers. New metro lines and road expansions are making neighborhoods more appealing, drawing in both residents and investors. The city's infrastructure is evolving, making it easier to get around and boosting property interest.
However, there's a catch. The city needs 50,000 new homes each year, but the supply just isn't keeping up. This shortage is felt across all housing segments, leaving many potential buyers in a bind.
Legal hurdles, developer challenges, and a shaky financial market are making it tough to build affordable homes. These issues are widening the gap between supply and demand, complicating the housing landscape.
For those eyeing property in Ho Chi Minh City, understanding these dynamics is key. The city's rapid growth and infrastructure improvements offer opportunities, but the housing crunch is a real challenge.
Sources: World Population Review, Vietnam Plus, Vietnam News
3) Ho Chi Minh City’s location as a Southeast Asia gateway enhances its economic potential
Ho Chi Minh City is a prime spot for economic growth, thanks to its strategic location as a gateway to Southeast Asia.
In 2023, the city was a magnet for foreign investors, leading the top 10 localities in Vietnam for Foreign Direct Investment (FDI). It hosted 12,398 projects with a total registered capital of 57.632 billion USD, making up 31.67% of all FDI projects in the country. This influx of investment highlights the city's appeal and potential for growth.
Fast forward to the first half of 2024, and Ho Chi Minh City continued to shine, attracting 198.82 million USD in FDI, which was double the amount from the same period the previous year. A significant chunk of this came from existing projects boosting their capital, with the Green Planet project alone increasing by 158 million USD. The city is becoming a favorite for multinational corporations, many of which are setting up regional headquarters here.
Trade is another area where the city is making waves. In 2024, trade turnover is expected to grow by 10% year-on-year, underscoring its vital role in regional commerce. The export turnover from industrial parks and export processing zones hit 4.5 billion USD in the first half of 2024, marking a 7% increase from the previous year.
Infrastructure is a big focus, with heavy investments in projects like metro lines and highways. These developments aim to enhance connectivity and attract more businesses and tourists, making the city even more appealing for potential property buyers.
Sources: VnEconomy, VietnamPlus, RH1, VnExpress, AsemConnect Vietnam
4) Ho Chi Minh City’s property market is resilient, even during economic ups and downs
Ho Chi Minh City's real estate market has shown remarkable resilience during economic fluctuations.
One reason for this is the consistent rise in property prices. Even from 2023 to 2024, prices have been climbing, and experts predict a further increase of 5-10% by 2025. This trend is fueled by the city's strong economic growth and increasing urbanization.
Demand for housing is another driving force. With rapid urbanization and population growth, the need for homes is outpacing supply. This was clear in 2024 and is expected to continue, making significant price declines unlikely. Foreign direct investment (FDI) is also a big player, with $2.4 billion invested in 2024, giving the sector a substantial boost.
Government infrastructure projects are enhancing the market's appeal. New metro lines and road expansions are improving connectivity, making certain areas more attractive to buyers and investors. Low vacancy rates in both commercial and residential properties, especially in places like District 1, indicate a stable and in-demand market.
These factors combined make Ho Chi Minh City a promising spot for property investment. The city's ongoing development and strategic location continue to draw interest from both local and international investors.
Sources: VietnamPlus, Arcadia Consult
5) With a young and growing population, Ho Chi Minh City has a strong demand for housing
Ho Chi Minh City is buzzing with a young and growing population that's driving up the demand for housing.
Every year, the city sees a steady increase in its population, with growth rates of 2.65% in 2024 and 2.69% in 2023. This means more people are on the hunt for a place to call home. Many of these newcomers are young professionals and students, eager to start their careers or further their education.
Interestingly, 28.6% of teenage migrants move to the city for education or skill development. This influx of young talent is not just looking for any housing; they need affordable and accessible options that fit their lifestyle and budget.
Urbanization is another big factor. With over 40% of Vietnam's population now living in urban areas, and projections to hit 45% by 2030, cities like Ho Chi Minh City are leading this urban shift. Young people are drawn to city life for its economic opportunities, which only adds to the housing demand.
For those considering investing in property, this trend is a golden opportunity. The city's vibrant, youthful energy and its role as an economic hub make it a prime spot for real estate investment. The demand for housing isn't just a trend; it's a reflection of the city's dynamic growth and appeal.
Sources: Macrotrends, SIT Digital Collections, Mordor Intelligence
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6) Ho Chi Minh City’s booming tech sector draws in professionals looking for homes
Ho Chi Minh City is experiencing a tech industry boom that's reshaping its real estate market.
In 2024, the city was recognized as the third most valuable startup ecosystem in Southeast Asia, with an economic impact of 5.22 billion USD. This has turned the city into a hotspot for tech professionals seeking new opportunities.
The influx of expatriates in the tech sector is noticeable, thanks to perks like competitive salaries and flexible work options. This has sparked a demand for modern housing, as these professionals look for living spaces that fit their lifestyle.
Major global tech companies are setting up shop in the city, further driving the need for high-end housing options. This presence not only attracts more professionals but also pushes property values up in tech-focused neighborhoods.
As these companies establish their offices, they bring with them a wave of professionals who are eager to find comfortable and modern living arrangements that match their work-life balance.
With the tech industry thriving, Ho Chi Minh City is becoming a magnet for talent, and the real estate market is evolving to meet the needs of this dynamic workforce.
Sources: VietnamPlus, Nucamp, TMS Consultancy
7) With more co-working spaces, Ho Chi Minh City is attracting a growing number of remote workers
The boom in co-working spaces in Ho Chi Minh City is a testament to the thriving community of remote workers.
In 2023, the city expanded its co-working spaces to 95,300 m², adding 12,800 m² more than the previous year. By 2024, this space grew by another 20%, thanks to new premium centers popping up downtown. This surge is a response to the increasing need for flexible office solutions, catering to the modern workforce's evolving demands.
Despite a slight dip in occupancy rates to 81% in July 2023, down from the previous year, there's still a strong belief in the future of shared offices. The competitive market has led to lower prices for shared office packages and individual seats, making these spaces more attractive and accessible to remote workers.
Vietnam's impressive ranking in the 2023 Global Remote Work Index underscores its robust internet and digital infrastructure, essential for remote work. The country's tech-savvy workforce, primarily Millennials and Gen Z, is a driving force behind this trend. Ho Chi Minh City, in particular, is a hotspot for digital nomads, offering affordability, rich culture, and vibrant communities.
Sources: Vietnam.vn, Nodesk.co, Vietcetera
8) With better healthcare, Ho Chi Minh City is a great place to live and invest
Ho Chi Minh City is becoming a hotspot for living and investing, thanks to its impressive healthcare advancements.
The city has a vast healthcare network with 129 hospitals, 310 medical stations, and over 8,000 private clinics, ensuring residents have easy access to medical services. This setup means you can find everything from routine check-ups to specialized treatments without much hassle.
The government is actively working to boost healthcare infrastructure by seeking public-private partnerships to fund new projects. This approach not only attracts investors but also promises a bright future for healthcare development in the city.
Quality of care is on the rise, with the introduction of advanced technologies like AI for early disease detection. This means quicker diagnoses and better treatment plans, which is a big win for patients.
City International Hospital stands out as a prime example, having been recognized for its improved facilities and services. This recognition highlights the hospital's commitment to patient satisfaction and sets a benchmark for others in the region.
With these healthcare improvements, Ho Chi Minh City is not just a place to live but a smart investment choice. Residents enjoy better health services, making the city more appealing for both locals and expats.
Sources: SGGP News, Healthcare Asia Magazine
We made this infographic to show you how property prices in Vietnam compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Ho Chi Minh City’s rising middle class boosts home buying power
Ho Chi Minh City's middle class is boosting home buying power.
With incomes on the rise, the average monthly salary in Vietnam has climbed to VND 8.5 million as of early 2024. This extra cash in pockets means more people are considering buying homes, making the dream of home ownership more attainable.
Urbanization is another big factor, with Vietnam's urbanization rate hitting 53.9% in 2023. As more folks flock to cities like Ho Chi Minh City, the demand for homes naturally goes up. This urban shift is a major driver for the housing market, as people seek out places to live in these vibrant cityscapes.
The middle class isn't just growing; it's evolving. They're showing a strong preference for owning homes, with surveys highlighting their desire to invest in high-quality real estate. This shift reflects their ambition to enhance their lifestyle, making home ownership a top priority.
In Ho Chi Minh City, the buzz around real estate is palpable. The expanding metro system, particularly Metro Line 1, is expected to boost property values, making now a strategic time to invest. This infrastructure development is a game-changer, enhancing connectivity and making certain areas more attractive for buyers.
As the middle class continues to grow, their purchasing power is reshaping the real estate landscape. They're not just buying homes; they're investing in a better future, driving demand for properties that match their aspirations.
Sources: Vietnam Briefing, Vietnam Plus, LQ Ltd
11) With tourism booming in Ho Chi Minh City, you can easily rent out your property short-term
Ho Chi Minh City is seeing a boom in tourism, which is boosting short-term rental opportunities.
In 2023, the city welcomed over 2.71 million international tourists in just the first eight months, a 92.3% increase from the previous year. This influx of visitors is driving up the demand for accommodations, especially short-term rentals. Tourists are increasingly looking for unique and local experiences, and short-term rentals fit the bill perfectly.
While exact occupancy rates aren't available, it's clear that more tourists are opting for short-term rentals due to their appeal. These rentals offer a more personalized experience compared to traditional hotels, making them a popular choice among travelers seeking authenticity.
Ho Chi Minh City's airport is also expanding, with the construction of Long Thanh International Airport. This new development is set to increase international flights and passenger numbers, further boosting the demand for short-term rentals. More flights mean more tourists, and more tourists mean more need for places to stay.
The city isn't just relying on its airport to draw in visitors. It's continuously improving its tourism offerings, adding new attractions and programs. These enhancements provide more reasons for tourists to visit, which in turn supports the growth of short-term rentals.
With these developments, Ho Chi Minh City is positioning itself as a top destination, making it an attractive spot for property investors looking to tap into the short-term rental market.
Sources: VietnamPlus, Wikipedia, HCM City Property
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12) With better public transport, you’ll spend less time commuting in Ho Chi Minh City
Ho Chi Minh City is making big moves to improve public transportation, cutting down commuting times for its residents.
One major highlight is the completion of Metro Line 1, which opened in December 2024. This line runs almost 20 kilometers, linking the bustling Ben Thanh Market to the lively Suoi Tien Theme Park. It's a game-changer, offering a slick alternative to the usual road chaos and aiming to ease the city's notorious traffic jams.
The city isn't stopping there. Since 2019, a smart traffic operation center has been in action, making traffic flow smoother and less congested. With Metro Line 1 running trains every 4 to 10 minutes, it's a reliable option for getting around without the stress of road travel.
People are catching on, too. The opening of Metro Line 1 has led to more folks choosing public transit, which is a win for everyone. Less pressure on the roads means quicker travel times for all, and it's a trend that's expected to grow.
The Vietnamese government is all in, with plans to roll out more metro lines across the city. This shows a strong commitment to boosting public transportation and cutting back on the need for personal cars.
Sources: Metro Rail Today, OpenGov Asia, Vietnam Briefing
13) Infrastructure projects, such as the metro, boost property values in Ho Chi Minh City
The government's infrastructure projects, like the metro system, are boosting property values significantly.
In Ho Chi Minh City, the new metro system is making waves in the real estate market. Properties near metro lines are seeing a noticeable increase in value, with CBRE Vietnam predicting that land prices within a 10-minute walk of metro stations could be 10 to 20 percent higher than those further away.
Stephen Wyatt from JLL Vietnam points out that since construction began on Metro Line No. 1, property development along the line has been booming. This isn't just a local phenomenon; cities like Tokyo and Seoul have experienced similar trends, where metro systems have driven up property values near stations.
The Vietnamese government is putting a spotlight on infrastructure spending to boost the economy. Infrastructure spending is set to grow by 15-20% in 2025, which could lift consumer confidence and energize the real estate market. This investment, especially in the metro system, is expected to improve urban connectivity, making certain areas more appealing to buyers and investors.
With these developments, urban areas are becoming more attractive, drawing in both local and international investors. The metro system is not just a transportation upgrade; it's a catalyst for economic growth and real estate appreciation.
As infrastructure projects continue, the ripple effects on property values are likely to expand, offering exciting opportunities for those looking to invest in the country's real estate market.
Sources: Vietnamnet, The Investor
14) With education growing, Ho Chi Minh City is ideal for students and families needing homes
Ho Chi Minh City is becoming a hotspot for families and students due to its rapidly expanding education sector.
In the 2023-2024 school year, the city boasted 2,295 educational institutions, a mix of public and private schools, reflecting a surge in student enrollment. This boom in schools shows a strong demand for quality education, naturally drawing families to settle in the area.
The city offers a variety of international schools, like the Australian International School Saigon and the International School Ho Chi Minh City, which provide modern facilities and multicultural environments. These schools attract both local and expatriate families, with students from over 50 countries, underscoring the city's global appeal.
Ho Chi Minh City's government is heavily investing in educational infrastructure, including digital transformation projects like smart classrooms. This dedication to enhancing education quality boosts the city's reputation as a top educational hub.
As a result, there's a noticeable uptick in the real estate market, with families eager to live near these educational centers. The proximity to quality schools is a major draw for those looking to buy property in the city.
With such a vibrant educational scene, Ho Chi Minh City is not just a place to learn but a place to call home, making it a prime location for property buyers.
Sources: Vietnam.vn, Education Destination Asia, SGGP News
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Vietnam. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Ho Chi Minh City’s lively art and cultural scene makes for a vibrant community atmosphere
Ho Chi Minh City is buzzing with a vibrant community atmosphere thanks to its thriving art and cultural events.
The city has poured resources into its cultural scene, with major projects like the Ho Chi Minh City Cultural Center and the Artistic Center in Thu Thiem. These investments have turned the city into a hub for artistic expression and lively community gatherings.
Take the Ho Chi Minh City River Festival 2024, for example. It drew in nearly 4.5 million visitors, a testament to the community's love for cultural events. This festival not only boosted tourism but also injected life into the local economy, creating a dynamic and engaging atmosphere.
Events like the Hozo International Music Festival and the first HCM City International Film Festival are also making waves. In 2024, these events attracted around 3.6 million attendees, underscoring the city's commitment to preserving and promoting its cultural and art values.
Ho Chi Minh City is also reaching out to the world. Collaborations with international consulates and cultural organizations have led to themed exhibitions, fostering cultural exchange and understanding. This global engagement enriches the local community vibe.
New cultural districts, like the Saigon Cultural and Creative Hub, are popping up, creating harmonious public spaces that align with urban planning and cater to community needs.
Sources: VietnamPlus, VietnamNet, Vietnam News, Dang Cong San
16) Ho Chi Minh City offers a secure investment climate due to its stable political environment
Ho Chi Minh City offers a stable political environment, making it a secure place for investment.
Even when political shifts occur, like the resignation of President Nguyen Xuan Phuc, the city remains calm. This is thanks to Vietnam's collective leadership rules, which keep policies steady and predictable. Investors appreciate this kind of stability, knowing their investments are in safe hands.
The government is keen on attracting foreign investors, aiming for upper-middle-income status by 2035. This ambition has drawn significant foreign direct investment from countries like Singapore, Japan, and South Korea. Such investments show that international investors trust the city's political climate.
Reports like Deloitte's "Doing Business in Vietnam 2024" emphasize Vietnam's stable governance and resilient economy. These insights make Ho Chi Minh City even more appealing to investors. The city is home to numerous international diplomatic missions and multinational corporations, further proving its stability and growth potential.
With a strong belief in its future, multinational corporations continue to set up shop in the city. This influx of businesses not only boosts the local economy but also reinforces the city's reputation as a reliable investment hub.
Sources: Foreign Policy, Deloitte
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.