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Property

Hanoi apartment prices consistently lower than HCMC's

Released at: 15:43, 18/10/2019

Hanoi apartment prices consistently lower than HCMC's

Photo: Ngoc Lan

Batdongsan.com.vn releases report noting ongoing differences between apartment prices in two cities.

by Ngoc Lan

The selling price and price growth in the apartment segment in Hanoi are always lower than those in Ho Chi Minh City, according to a quarterly report from Batdongsan.com.vn released on October 15.

The selling price in Ho Chi Minh City in the third quarter was VND37 million ($1,500) per sq m and price growth 11.8 per cent compared to the third quarter of 2018. Meanwhile, the selling price in Hanoi was VND29 million ($1,200) per sq m and price growth only 3.9 per cent.

In addition, the average rental price in the third quarter in Hanoi was VND11.1 million ($476) per month and the profit rate 5 per cent, compared to VN14.2 million ($609 per month) and 5.4 per cent in Ho Chi Minh City.

The average selling price of apartments in Hanoi’s central districts of Hai Ba Trung, Tay Ho, and Ba Dinh was VND36 million ($1,500), VND45 million ($1,900), and VND55 million ($2,300) per sq m, respectively. In Ho Chi Minh City, the central districts of Phu Nhuan, District 10, and District 3 saw much higher prices, of VND50 million ($2,100), VND55 million ($2,300), and VND77 million ($3,300) per sq m respectively.

In areas outside of the center of Hanoi such as the districts of Dong Anh, Ha Dong, and Hoang Mai, the average selling price was VND20 million ($858), VND20 million ($858), and VND23 million ($987) per sq m, respectively. Meanwhile, in the districts of Binh Tan, Binh Chanh and District 9 in Ho Chi Minh City, the average selling price was VND25 million ($1,000), VND25 million ($1,000), and VND29 million ($1,200) per sq m, respectively.

According to Mr. Nguyen Ngoc Hieu, Head of the Market Research Department at Batdongsan.com.vn, Ho Chi Minh City is more attractive than Hanoi in terms of selling price, rental price, rate of return, and profit margin due to it being the leading engine of economic development in the country, despite Hanoi’s economy developing.

He also pointed out that the openness of the economy in Ho Chi Minh City is greater, and as such most foreign companies coming to Vietnam choose the city for their representative office. “Real estate products in the city are more diverse than in Hanoi, while population growth in Ho Chi Minh City has continually increased over the years, attracting a large number of workers from all parts of the country as well as foreign experts,” he added.

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