HCM City upscale apartment sales much higher than Hanoi

Realtor Vietnam, an association of Vietnamese real estate developers, said in a newly-released report that the absorption rate of premium apartments in Hanoi was 13% in the third quarter, while it was six times higher in Ho Chi Minh City at 78%.

The gap is even wider in the luxury segment, with the absorption rate in Hanoi at 2% and that of Ho Chi Minh City a full 100%.

Premium apartments are defined as those which cost VND45-VND70 million (US$1,925-US$2,995) per square meter, while luxury apartments cost from VND70-VND200 million (US$2,995-US$8,558).

“This shows that investors have high confidence in the potential for development of Ho Chi Minh City and expect an increasing number of rich Vietnamese and expats to reside there in the future,” the report said.

In another recent report, real estate consultancy Savills Vietnam had said that the high-end apartment market has become vibrant again after a “quiet” period.

It attributed this to Vietnam’s development, higher savings and foreigners being allowed to own 30% of an apartment buiding since 2015, Savills said.

The number of luxury apartments in Vietnam is seeing robust growth. In the third quarter this year it reached 1,322 units, 11 times higher than the second quarter, according to Realtor Vietnam.