Are Singaporeans Attracted to the Rising Housing Market in Vietnam?

Vietnam’s housing market has experienced significant growth in 2024. According to Vietnam Briefing, property listing platform Batdongsan.com.vn, part of PropertyGuru Group, reported that house prices in District 1 increased by 8.2% year-on-year, reaching VND255 million per square metre. Land sales searches saw the most substantial growth in the first half of 2024, rising by 45% year-on-year, followed by searches for apartments (33%), villas (25%), and shophouses (22%).

Hanoi's residential market has been even more dynamic. According to the same report, apartment prices in the capital soared by 31% year-on-year in the first half of 2024, while private house prices surged by 32%. Apartment searches in Hanoi also rose sharply, increasing by 45% year-on-year.

Tracking the asking prices of 101-125 sqm apartments in Hanoi since June 2024, DataSense—which leverages listing data from Batdongsan.com.vn—shows a progressive price trend (Figure 1). 

Figure 1:  Unit price weighted by Demand (Duong per square metre) for a 101-125 sqm unit in Hanoi

As prices rise, demand is expected to adjust accordingly. In Figure 2, we observe a temporary decline in the demand index for 101-125 sqm apartments, derived from unique views and user interactions with listings, from April to June 2024.

Figure 2:  Demand and Supply Indices of 101-125 sqm apartment in Hanoi

Interestingly, the fluctuation in demand corresponds with the supply of listings (Figure 2), indicating that the slowdown is not solely price-driven but also influenced by the availability of options. As more supply enters the market, we anticipate a strengthening of market conditions.

Vietnam’s economic outlook remains optimistic, particularly as more companies adopt the China+1 strategy, driving continued interest from foreign investors. In September, searches for apartments from foreign IP addresses were led by Germany, which accounted for about 24% of all searches from foreign origins. Singapore followed in second place, with 14% of searches from Singapore focused on Nam Tu Liem in Hanoi.  

While the housing outlook remains promising, market recovery depends on political stability and the timely release of the three new laws.

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