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Ho Chi Minh City: Supply Tension Pushed Up Housing Prices

Updated: Dec 25, 2020

Being the most populated and economically developed city in Vietnam, Ho Chi Minh City is dealing with the growing housing demand but dripping supply.

Housing demand increases despite Covid-19

Experts state that there are 3 main reasons for the upsurge in housing demand despite Covid-19:

  1. HCMC is the most densely populated city with a mechanical population of 13 million. The demand for housing, especially for the young generation, keeps increasing.

  2. An increase in average income per capita, coupled with foreign investors’ rising interest has stimulated the demand for apartment ownership.

  3. Infrastructure and transportation improvements after Covid-19, with the residents’ growing interest in the green lifestyle, driving demands for green spaces and anti-flooding areas.

Scarce supply leads to an upsurge in housing prices

By the end of 2020, a record of the Vietnam Real Estate Brokerage Association shows the housing supply in HCMC is growing extremely scarce. In the past 2 years, nearly no new housing projects were approved, due to the difficulties in different construction and legal phases.

The scarce supply of housing despite high demand can be attributed to several reasons:

  1. A temporary suspension of development from state land management agents

  2. A growing number of illegitimate real-estate projects leaves fewer legal projects for consumers to choose from, leading to even more limited supply

The growing prices of residential real estate in Vietnam compared to other countries show ideal current business initiatives. Let our team accompany you to leap at this opportunity to deepen your knowledge in real estate in Ho Chi Minh City specifically and in Vietnam generally to yield maximum returns in the near future. Contact us now for more information on upcoming investment opportunities.

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