The Ho Chi Minh real estate market has been growing exponentially since 2013. And it is not going to slow down in the foreseeable future. Massive interest from foreign investors and increased wealth among the local population are the primary causes of that growth.
Buying real estate property in HCMC is best completed with the help of a local solicitor. The solicitor can guide you through the delicate waters of real estate buying and make sure that all goes smoothly.
Foreigners are allowed to buy real estate property in Vietnam since 2015. Foreigners can buy as many properties as they like to. The only real restriction comes when buying properties close to areas critical to national security, and they can’t own more than 30% of an apartment project. That’s one of the reasons why the sector is seeing such massive expansion.
Rental Yields in HCMC
HCMC has some of the highest rental yields in Asia. For some areas like District 2, the rental yields are as high as 8%.
The Metro Star project is expected to have a massive impact on the rental yields stretching its lines. That is expected to have a big effect on units running along its lines in District 9. According to CBRE, properties that are as far as 10 minutes from the metro station will see an appreciation of 10 to 20%. Of course, that’s once the metro is operational.
Top Areas to Buy Property in HCMC
Ho Chi Minh City is divided into districts, which are known as District 1, District 2, District 3, District 4, District 5, and so on. But some parts of the city have actual names, instead of just numbers, like Bin Tanh.
This district is located at the very center of HCMC and offers the most expansive units. There you can find the most recognizable landmarks of the city like the old post office, the Notre-Dame Basilica, the Bitexco financial tower, Ho Chi Minh City hall, and the theater. Prices are quite steep, but the demand is always great as anyone with deep pockets wants to have a place there.
This is an area that is very popular with expatriates. It is a family-friendly area, with few international schools, great restaurants, and a cosmopolitan community. The area was once a synonym for poverty and was much undeveloped. However, the massive economic development and foreign investments made it one of the best communities in HCMC. Nowadays, it has one of the best infrastructures in the city, and many predict that it is set to reach even higher standards.
This area is very popular with travelers and young people. It has one of the most vibrant communities with excellent coffee shops, restaurants, shopping malls, colonial French style properties, serviced apartments, and beautiful villas. The nightlife is quite diverse, and the prevailing locals live in perfect harmony with the many foreigners present there.