The real estate markets of Ho Chi Minh City and Hanoi are experiencing diverging trends, highlighted by contrasting demands and preferences among potential buyers. According to recent data from Batdongsan.com.vn, the need for properties valued between 5-10 billion VND is nearly double in Ho Chi Minh City compared to Hanoi as of November 2024.
This distinction sheds light on the varying economic conditions and consumer interests between the two major cities. Specifically, Batdongsan.com.vn reported heightened searches focused on mid-range products, with interests centered around properties priced at approximately 2-3 billion VND per unit and 3-5 billion VND per unit. Here, Hanoi leads slightly, but as the price range climbs, Ho Chi Minh City takes precedence, particularly for properties priced from 5-10 billion VND and lower-tier markets, sitting firmly at 1-3 billion VND.
Interestingly, this trend is less pronounced outside the capital cities, where demand leans more toward properties around 1-2 billion VND. When we look at the types of properties people are searching for, the divide is clear: Ho Chi Minh City's focus lies heavily on private houses, whereas Hanoi residents show greater interest in apartment complexes. The scenario shifts again when examining outlying provinces, where land sales dominate the search trends.
The rental market shows consistent patterns across both cities, fueled by stable demand for rental apartments, lodgings, and houses. For example, within Hanoi, the Nam Tu Liem district, especially the Tay Mo area, is particularly popular for property purchases. Conversely, the most sought-after rental areas like Cau Giay are thriving.
Ho Chi Minh City, on the other hand, sees significant interest around District 2, particularly An Phu, which not only leads the area for sales but also rental demand. Other hot spots for property seekers include Phu Huu and Thao Dien, evidencing active interest across several districts.
Turning to supply, 2023 has seen significant reductions, with reports indicating the lowest amount of new property projects available in the past decade. Only a handful of new developments have emerged on the market, reflecting caution on the part of developers and investors. The first half of 2024 continued to see this trend, with sporadic new projects launching, hinting at slow but gradual revitalization.
By the third quarter of 2024, the market began showing signs of recovery. New projects, including both fresh entries and updates on existing developments, spurred interest across both cities. Hanoi has seen nearly ten new projects come online, including notable mentions like Lumi Hanoi and The Ninety Complex, signifying market resilience and the potential for growth.
Similarly, Ho Chi Minh City is experiencing a renewed wave of developments, welcoming projects such as Eaton Park and The Global City toward the year's end. This attention not only signals recovery but offers hope for sustainable growth moving forward.
Real estate analysts remain optimistic about the market's future, especially as new projects are released and demand stabilizes. The distinct preferences between Ho Chi Minh City and Hanoi, paired with their unique economic climates, indicate potential areas for growth and innovation within the Vietnamese real estate sector.
Given the dynamics of the current market, it remains to be seen how these trends will evolve as housing demands fluctuate. The underlying demand for properties across varying price segments and types shows significant potential for both buyers and investors alike. Marking this period as particularly transformative could define the direction of the real estate markets of Ho Chi Minh City and Hanoi as they respond not only to local economic conditions but also to broader market trends.
