While the apartment market in the North was somewhat bleak, the southern apartment market – especially HCMC – was extremely active last year.
So, what is the reason for this difference?
Market report on housing of Savills Vietnam recently announced that, in addition to the attraction from the landing of foreign investors, the influx of remittances poured into real estate increased. There are many reasons for the apartment market’s attracting in HCMC.
The number of newly established households has increased sharply
General Statistics Office said that from 2009 to 2016, HCM City has 134,000 households newly established. This number is really a huge amount when we compare it to the situation of the whole country. The increase in the number of new families. Plus the depletion of old housing has led to the phenomenon of people with new housing needs. Especially with the apartment segment due to its convenience.
The number of 1 person households increased
Besides the large population, the number of one-person households in HCMC has increased sharply, from 4.6% in 1989 to 9.4% in 2016. It is expected that in 2019, this figure may increase to 10.1%. This is also one of the new sources of housing demand for the HCMC real estate market.
Ho Chi Minh City is one of the cities with the highest urbanization rate in ASEAN. According to statistics, the population growth rate here reached 17%. Savills report said that the population growth in HCMC will continue to go up and be the highest in the country. That also means that housing demand is increasing.
The amount of affordable housing increased
Ho Chi Minh City is the low cost housing market. And It is leading the country with 90% of buyers of class C apartments want to buy to live here, not to invest. This index of Saigon is higher and more positive than Hanoi.
Savills noted that the growth of Vietnam’s housing market was fueled by the golden demographic structure and positive economic outlook. Ho Chi Minh City is a special housing market and It is entering a period of strong transformation, comparable with other cities in the region.