Vietnam’s real estate market has seen a significant increase in transaction volume during the first half of 2024. This growth is due to strong demand for high-end apartments and a recovering market that is attracting both local and foreign investors.
Significant increase in property transactions
In the first half of 2024, Vietnam saw 20,600 property transactions, a figure three times higher than the same period last year. Out of these transactions, 14,400 took place in the second quarter, and mainly involved apartments. This data, reported by the Vietnam Association of Realtors (VARS), underscores the substantial recovery of the real estate market following the challenges experienced during the pandemic.
A significant trend in today’s market is the high demand for high-end apartments. Apartments priced above ₫ 50 million ($2,000) per square meter made up 40% of all apartment transactions. This increase in luxury property purchases shows a growing interest in premium real estate, driven by both wealthy local buyers and foreign investors looking for high-quality living spaces in major cities in Vietnam.
Surge in apartment sales in Hanoi and Ho Chi Minh City
Hanoi has been experiencing a significant real estate boom. According to real estate consultancy CBRE, over 12,200 apartments were sold in the city during the first half of 2024. Surprisingly, 84% of these sales occurred in the second quarter alone, matching the total number of apartment sales for the entire previous year. This rapid increase in transactions reflects Hanoi’s strong demand and active market conditions, making it an appealing location for property investment.
In the second quarter, Ho Chi Minh City (HCMC) experienced a notable increase in apartment sales. Property consultancy Savills reported 2,300 apartment transactions, representing 70% of the city’s total apartment sales in the first half of the year. The rising number of transactions in HCMC indicates the continued interest from investors and the increasing demand for residential properties in this vibrant city.
Market recovery and rising prices
The real estate market in Vietnam is experiencing a strong recovery, with the apartment segment leading the way. While townhouses and land segments are also starting to pick up, the resort real estate sector remains relatively quiet. Prices in the primary market have increased to around ₫ 60 million ($2,400) per square meter in both Hanoi and HCMC by the end of the second quarter.
The increasing prices suggest a strong market recovery and indicate that investing in properties in Vietnam could lead to substantial returns. For international property buyers, the current market situation presents a special chance to invest in a rapidly expanding real estate market with promising opportunities for both capital appreciation and rental income.
Opportunities for foreign investors
Foreign investors interested in Vietnamese real estate will find the current market favorable due to the significant increase in property transactions and rising market prices. The strong demand for high-end apartments and the rapid market recovery highlight the potential for profitable investments in Vietnam’s major cities. Furthermore, the growing number of transactions in both Hanoi and HCMC underscores the attractiveness of these cities as prime locations for real estate investments.
In conclusion, Vietnam’s real estate market is currently undergoing a dynamic and robust recovery in 2024. There has been a significant growth in property transactions, accompanied by rising prices and strong demand for luxury apartments. This presents lucrative opportunities for both local and foreign investors. As the market continues to evolve, investors can expect to benefit from the ongoing development and expansion of Vietnam’s real estate sector.
