The city of Ho Chi Minh is developing into a hub of real estate opportunities in Southeast Asia. Residential areas are popping up everywhere in the city, ranging from high-end condominium buildings to technologically upgraded homes. Meanwhile, commercial and recreational areas are not falling behind either.
This might pique the interest of foreign investors and sustainability advocates alike - what does 2024 hold for Ho Chi Minh City? And with the changing trends in urban Vietnamese real estate, the technologies that shape the contemporary HCMC, and the influx of people towards this large economic and cultural center, there sure is a lot to look forward to for the rest of the year, especially in the field of real estate.
Introduction to Ho Chi Minh City
Formerly known as Saigon, Ho Chi Minh City (or HCMC) is the largest city in Vietnam, which is also their economic and cultural center. Bustling and bursting with vibrance and energy, Ho Chi Minh City boasts an interesting blend of history and modernity in its architecture, with both soaring skyscrapers and French colonial structures all over the city. Ho Chi Minh City is home to innovation, cultural heritage, as well as sights and flavors from the local scene that are unique and remarkable to natives and foreigners alike.
Predictions for 2024 in Ho Chi Minh City
As a lion in finance and business, HCMC houses some of the most advanced, modernized, and innovative residential, commercial, recreational, and mixed-use areas. In line with this, the trajectory of real estate trends and developments in Ho Chi Minh must be taken into account and discussed for business purposes. Obtained here are reliable data collected from previous years, as well as insights from experts and professionals in the field of land development and property management. The predictions for 2024 in the field of real estate for Ho Chi Minh City are as follows:
Insights on Ho Chi Minh City Residential Areas
The Senior Director of Consulting and Research at JLL Vietnam, Miss Trang Le has provided some real estate insights especially on residentials areas in Ho Chi Minh City. In 2024, about 4,900 new high-end apartment units and 2,400 landed property segments are expected to be built. But being on the lookout for more zeal in the market, developers are staying on-guard with regards to brand new projects.
There is also a current trend on compact and affordable housing, which includes more and more interest and actual purchases of real estate properties such as studio units, compact condominiums, micro-apartments, and co-living spaces, among a slew of others.
Insights on Ho Chi Minh City Commercial Areas
Aside from the prioritization of infrastructure development for transportation costs reduction and overall business efficiency, commercial areas in Ho Chi Minh City are expected to see a boost as well, with its GRDP growing by 5.81% in 2023. HCMC is expecting to see at least a 7.5% growth this 2024.
Insights on Ho Chi Minh City Recreational Areas
As of writing, there are a total of 6 locations that are marked for development in Ho Chi Minh City are in Thu Duc City and districts of Cu Chi, 12, Binh Tan, and Binh Thanh. These are mostly vegetable gardens, landfills, and vacant lands. Spearheaded by the HCMC Department of Construction, almost 800 hectares of empty land will soon home parks for various uses by the public.
Insights on Mixed-Use Complexes in Ho Chi Minh City
Integrated areas that are utilized for commercial, recreational, and residential purposes are expecting to see another boom this year, with last year's report by Savills Vietnam that around 45% of the residential market of Ho Chi Minh City is for mixed-use areas like condominium complexes with malls, restaurants, bars, clubs, shopping stores, as well as parks and playgrounds.
What Sustainability Will Look Like in Ho Chi Minh City
According to Fuels and Lubes, Ho Chi Minh City is aiming for net zero emissions by 2050. This means that developments in real estate must accommodate this goal. To execute this, the Cần Giờ District was selected to be the model district for carbon neutrality, as Ho Chi Minh City aims to implement a comprehensive plan ensuring zero emissions.
Furthermore, we have the Vietnam Green Building Council claiming that green building certifications in Ho Chi Minh City have gone up by 20% in 2023. In comparison to the past year, this reflects enthusiasm towards sustainable building practices in the real estate sector of HCMC.
Insights for Foreign Investors in Ho Chi Minh City
Attractive to FDIs or foreign direct investments, Ho Chi Minh City has over US$5.85 billion in newly registered capital last 2023. This trend is projected to go on, especially with the "China Plus One" strategy along with trade agreements and labor costs currently observed in the Vietnamese economy. For foreign investors, it is wise to invest in the mechanical and automation industry, and the electronic and IT industry, as well as in chemical products and in food processing.
As for programs, the government has encouraged foreign investors for each of the fields mentioned above - the People’s Committee of HCMC-issued support program for the development of mechanical and automation enterprises for the entire 2020 to 2030, as well as the Science and Technology Research and Development Program for the electronics and IT industry from 2021 to 2025.
We also have the development strategy of the pharmaceutical industry spearheaded by the the HCMC Department of Health for 2020 to 2025, and lastly, the development program led also by the People’s Committee of HCMC to support local and foreign businesses in the food industry, expected to last from 2020 to 2030.
Additional Real Estate Insights for Ho Chi Minh City
Wellness and lifestyle centers are proving to be more important by the day - CBRE Vietnam conducted a study and found that 76% of the respondents value the existence of lifestyle amenities and wellness facilities as essential factors when it comes to selecting a property in Ho Chi Minh City.
Meanwhile, there is also a projected rise in virtual real estate platforms. As per PropertyGuru, 68% of those who are looking to purchase properties in Vietnam make use of virtual or online platforms like websites, mobile apps, or even groups or official pages of property management companies on social media to find their perfect match. This proves that the public is embracing the digital wave even in their choices especially when it comes to the field of real estate.
Overall, Ho Chi Minh City leads as the number one center for financial and business development in Vietnam, thus fueling the need for more real estate projects to come into fruition in 2024, and in the coming years as well.
