The largest conurbation in Vietnam, Ho Chi Minh City is the country’s economic centre and a key tourist destination. Seven million tourists visited Ho Chi Minh City in 2018, attracted by its wide boulevards, French colonial architecture and renowned museums as well is eating areas in District 1’s ‘Western Quarter’.
Global Living report has been released by CBRE, where the firm examines the housing markets in 35 global cities. They include Ho Chi Minh City and the most exciting cities in the world, from emerging technology-driven powerhouses like Shenzhen and Bangkok and more traditional capital cities such as Rome and Lisbon, to rapidly evolving modern urban centres like Dubai and Johannesburg.
Let’s see how Vietnam’s Ho Chi Minh City has performed over the last year?
Vietnam is one of the fastest growing economies in Asia and attracted foreign direct investment worth USD 36 billion in 2017, setting a new record. Estimated GDP growth in Vietnam was 7% in 2018, with growth in Ho Chi Minh City expected to be higher at 8.7%.
Ho Chi Minh City has been hailed as a ‘Silicon Valley of Asia’ because of its upgraded infrastructure and thriving tech-driven economy, supported by Government policies to build an innovative city. More than 24 incubators and 12 start-up spaces have been created, encouraging more than 800 new ventures to begin operating and attracting overseas technology companies to invest.
Rapid population and employment growth is creating high demand for new housing. This is partly being met by the condominium market, which has emerged as a hugely successful concept in recent years. New units sell very quickly: in Q2 2018 the absorption rate of freshly launched units was 80%.
The condominium market is characterized by new residential clusters in areas such as Phu My Hung and expected to continue at an accelerated rate in the foreseeable future, with development hotspots in Thu Thiem, An Phu and Thanh My Loi.
New areas of Ho Chi Minh City will be opened up for development by a number of significant infrastructure projects that are now underway or in the planning stage. They include a metro rail system, due to open in 2020, that will help ease traffic congestion and improve connectivity with previously remote areas of the city.
Despite its strong economic development and high demand, average home price of Ho Chi Minh still be cheaper than other cities in the region. A new home prices in Ho Chi Minh City averages at about US$103,057, up 2.0%, ranked 25/35, while Kuala Lumpur up 1.9%, ranked 15th, Bangkok up 4.0%, ranked 21st and Singapore up 1.1%, ranked 27th.
Average home price (US$) | Data: CBRE/ Infographic: https://vienaminsider.vn
According to the CBRE’s report, average prime property price in Ho Chi Minh City at US$403,270. Hong Kong has retained its mantle as the most expensive housing market on Earth, boasting the highest average home price at $1.2 million, as well as the highest average prime property price at $6.9 million.
Average prime property price (US$) | Data: CBRE/ Infographic: https://vietnaminsider.vn
The other most-expensive markets for prime homes are Shanghai and Moscow, at $2.4 million; Beijing at $2.2 million; Shenzhen at $2 million; and London at $1.8 million. For cheaper luxury digs, try Dublin, where the average price comes in at $384,050, cheaper than Ho Chi Minh City.
Average cost per meal for 2 | Data: CBRE / Infographic: https://vietnaminsider.vn
Average cost of per meal for 2 persons at a mid-range restaurant in Ho Chi Minh city is about US$17, while in Shanghai at US$29, in Bangkok at US$26
Ho Chi Minh City in numbers | @ CBRE
In addition, one-way ticket price for local transportation in Ho Chi Minh City at US$0.26, while in Beijing, the price is expensive as double at US$0.58.
So, Ho Chi Minh City is easy to live or “suffocated?
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