Purchasing real estate in Vietnam has become one of the most investment-attractive strategies in 2023. Vietnam, with its large economic growth and stable political climate, offers a great variety of opportunities for both local and overseas investors to acquire residential and commercial properties.
Content:
- The territorial appeal of real estate in Vietnam
- Is 2024 the year of new property owners in Vietnam?
The country’s real estate market is significantly expanding, and many investors take advantage of the opportunity to purchase local housing that they like the most. Vietnam is traditionally interesting to expats for its beautiful nature, rich culture and fast-growing economy. The main directions that were in demand in 2023 include the purchase of apartments in new buildings in the city centre and beyond, villas on the coast, and commercial projects in business complexes.
Apartments in new buildings were in unprecedented demand among foreign buyers. Many of them purchased off-plan apartments to get the most favourable conditions and prices. Additionally, apartments in new buildings in Vietnam are equipped with all modern amenities. The buildings are built with high-tech materials and the latest construction approaches.
The major investment trend in 2023 is the purchase of real estate in new complexes. The state-of-the-art housing is designed and built to meet the growing needs of residents and visitors of Vietnam. A rich choice of projects, from luxury high-rise apartments to inexpensive studios, offers potential owners a wide range of housing options.
One of the notable projects attracting attention is the Sunshine City residential complex in Hanoi. This large community consists of several towers with hundreds of residences. Sunshine City offers its residents a comfortable and modern life thanks to its advanced design and amenities. The project aims to create an atmosphere of a gated community by including green spaces, parks and recreation areas. The average price per m² of apartments in Hanoi is a little over $2,000.
Another community popular with investors is located in the southern region of Vietnam, next to the Vinhomes Central Park in Ho Chi Minh City. This huge residential cluster is built on the banks of the Saigon River overlooking the waterfront. The Vinhomes Central Park boasts high-quality service and well-developed infrastructure, including a private marina, shopping malls, schools and a hospital. The autonomous community strives to provide its residents with everything they need within walking distance. The average price per m² in Ho Chi Minh City apartments is approximately $3,230.
In addition to luxury and large projects, Vietnam has also seen an increase in the number of affordable housing complexes that meet the needs of middle-income buyers. One of these residential complexes is Green Star City in Binh Duong. This project aims to create a sustainable and eco-friendly community. The complex offers a wide range of apartments that can be purchased by buyers with different budgets.
Villas on the coast. Excellent beaches, picturesque landscapes and beautiful nature have made villas on the shore extremely sought-after properties, for example, in the popular Phu Quoc Marina project, which is located on Phu Quoc Island. This exclusive coastal complex offers villas and residences with private pools and ocean views. The project also includes a world-class marina. Phu Quoc Marina provides residents with a first-class standard of living thanks to its advantageous location and careful attention to every detail. Prices for Vietnamese villas vary greatly—you can buy a mansion in Hanoi for several thousand dollars or a luxury villa in Ho Chi Minh City for over $41 million.
Commercial properties in the business hubs of Vietnam was also in high demand. The country's growing economy and wide opportunities attract entrepreneurs and foreign companies that scale business. This increases the demand for office and retail space.
The territorial appeal of real estate in Vietnam
One of the most popular housing projects purchased in Vietnam in 2023 are flats and apartments in major cities such as Hanoi and Ho Chi Minh City. These two megacities are the country's economic and cultural centres, and the demand for housing is constantly growing. Investors see the potential for further price increases in the coming years making local properties attractive to buy, especially at the construction stage. There are brand-new residential clusters in Ho Chi Minh City, which are designed to meet the growing demand for housing. Residences in the complexes have become extremely popular, especially with overseas buyers. Country properties in the vicinity of Ho Chi Minh City were also in great demand.
Another sought-after type of houses in Vietnam in 2023 were mansions and villas in resort regions. Tourist locations, such as Nha Trang and Phu Quoc, offer luxury sea view complexes with exclusive services. Houses and villas in Vietnam were in demand not only for permanent residence, but also for rent. The price range is large—it depends on the location, area and property purpose. For example, a 2-bedroom residence in a prestigious high-rise building in Nha Trang will cost almost $40,000, while a commercial townhouse or a 3-bedroom and 4-bathroom home store in Phu Quoc costs over $500,000.
Is 2024 the year of new property owners in Vietnam?
Vietnam’s real estate market forecast for 2024 looks quite optimistic.
First, the demand for housing in the country is expected to continue to grow. This is due to the fact that the south-eastern tourist destination is becoming extremely popular. The increase in demand with limited supply guarantees high profitability, which attracts foreign capital. An improved standard of living and a stable economy create favourable investment conditions. The property value is projected to increase by 3–5%.
Second, the development of infrastructure will also affect the state of the Vietnamese property market in 2024. Large projects are underway to scale up the road network, airports, ports and other objects. The government is expected to continue to stimulate the construction of infrastructure, which will support the rise in housing prices.
Overall, Vietnamese housing properties are a promising investment sector. According to forecasts, the trend is expected to continue in 2024. Stable economic growth, government measures to attract foreign capital and an increase in tourist flow retain the state's status as an attractive place to purchase overseas properties. When choosing a home to buy, you should pay attention to sought-after destinations, such as major cities and resort regions, and consider the potential for rising property prices in these areas.