Northern Investors Flock to Ho Chi Minh City for Better Returns

Strategic Insights -

Ho Chi Minh City continues to be a top destination for northern investors seeking better returns, as property prices in Hanoi have surpassed those in the southern city, prompting many to view the southern market as offering greater price growth potential.

Key Takeaways:

  • The proportion of northern buyers searching for HCM City properties rose from 44% in Q2 2024 to 61% in Q2 2025.
  • Apartment prices in Hanoi have surpassed those in HCM City, with prices in the former HCM City, Binh Duong, and Dong Nai being around 38 million VND (1,453 USD) per sq.m, 33 million VND per sq.m, and 61 million VND per sq.m, respectively.
  • Binh Duong recorded a rental yield of 4.1%, while Dong Nai posted 4.4%, both significantly higher than HCM City's 2.8%.
  • The Government's policies, including Decree 151 and Directive 78, have enabled faster project implementation, rebalancing supply and demand, and restoring investor confidence.
  • The merger of HCM City, Binh Duong, and Ba Ria-Vung Tau forms a multi-core growth model poised to become Vietnam's largest metropolitan area.
  • Apartments have solidified their status as the market's top-performing segment, accounting for 29% of total search interest.
  • 64% of real estate brokers reported that end-users made up more than 40% of their transactions, while 57% observed that over 40% of buyers planned to rent out their properties.
  • Short-term investors accounted for less than 20% of brokers' client base, signaling a clear decline in speculative activity.
  • Searches for apartments in both new and former HCM City rose by 11% and 9%, while listings increased by 12%, indicating that supply is beginning to catch up with demand.

Statistics:

  • 500 participants attended the "Vietnam Real Estate Market Outlook H1 2025" event held in Ho Chi Minh City.
  • 64% of real estate brokers reported that end-users made up more than 40% of their transactions.
  • 57% observed that over 40% of buyers planned to rent out their properties.
  • 46% of brokers said short-term investors accounted for less than 20% of their client base.
  • 502 real estate brokers participated in the survey.
  • Apartment prices in Hanoi have surpassed those in HCM City.
  • Rental yields in Binh Duong and Dong Nai are 4.1% and 4.4%, respectively.
  • HCM City's rental yield is 2.8%.
  • Search interest in the newly expanded HCM City rose 6%.
  • Search volume in Hanoi declined by 16%.
  • Average prices in Binh Duong and Dong Nai are 38 million VND (1,453 USD) per sq.m and 33 million VND per sq.m, respectively.

Sources:

  • Vietnam Real Estate Market Outlook H1 2025 event
  • Batdongsan.com.vn
  • Decree 151
  • Directive 78
  • Data from 502 real estate brokers